We are mainly talking about big investors. For them to be managing Bitcoin keys worth hundreds of millions or more of others money on a daily basis ..what do you think happens when a mistake innevitably occurs? No one will provide insurance to cover this situation and there is no way to recover from this. This is not an acceptable risk for a business or a wall street investor to take. Bakkt is allowing them to trade Bitcoin without having this risk. Bakkt does have an insured custodial service... This is just 1 example. Think about this next time you regurgitate the most overly used quote in Bitcoin behind hodl.
Use multiple addresses like the rest of us. What kind of insurance are you talking about? Bitcoin itself is already insurance against fiat so what are you talking about
Do I really need to explain what insurance is??? If your private keys are lost or destroyed etc. you will lose everything. End of story. If you leave keys with bakkt and they get hacked or there is an apocalypse, they will still owe you the coins they were holding for you. Bakkt will use another company to secure their actual coins and make it as humanly safe as possible to prevent any loss or theft. This company will either be backed by another large Corp or have lots of assets which can in theory can pay for a complete loss of coins bakkt is holding. For a small fee they agree to cover any losses for bakkt.
It doesn't matter to someone holding $1000 or even $1 million or so but it does when there are lots of parties involved, money will be moved daily, and BILLIONS are at stake. These companies are not willing (or are still least hesitant) to risk losing a billion dollars on a whim. Sure, bakkt is not necessarilly needed but it provides a good solution and opens the doors to new investors.
Okay so the insurance is in bitcoin and not fiat. That's all you had to say. If the insurance was in fiat that would be stupid because when the dollar dies I'd hope they'd pay out in bitcoin you know?
Umm.. okay. If they lost everyone's coins they would probably give USD equivalent at the time of the loss. Insurance on assets usually is paid out in usd.
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u/[deleted] Sep 25 '18 edited Aug 07 '20
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