Barry Silbert, founder CEO of SecondMarket and the Bitcoin Investment Trust, posted an interesting tweet Friday morning indicating that insurance companies may be looking for a piece of the bitcoin pie:
Interesting. We’re starting to get approached by large, well-known insurance [companies] looking to offer insurance products on bitcoin exposure
As the bitcoin realms continues its growth, major companies are looking for ways to adapt their business models to include products central to the digital currency.
Insurance is a big thing. If you’ve got an account with an FDIC-insured bank in the United States, and they go under, your money is safe (assuming it’s below the FDIC limit).
Now imagine such insurance when it comes to bitcoin start-ups that hold significant amount of user funds. You can bet customers would feel a whole lot better storing their money on, say, Coinbase or Circle.
Just take a look back to February, when Mt. Gox said they no longer had access to the funds of their users — losses that amounted to hundreds of millions of dollars. Had there been insurance there, the outcome would have likely been different.
We’re at a point in time where things are getting very interesting in this space. It won’t be long until companies you’re familiar with have their hands in the bitcoin pot in some form or another.