Why Bitcoin Businesses Struggle to Get Insurance
As early as the 2nd century BCE, Babylonian traders insured goods from loss at sea by paying a premium on loans. If they paid a little extra when they borrowed, the debt would be forgiven if a freak wave swallowed their cargo en route to market, or if pirates attacked their ships. The bitcoin economy is drastically different, but the need to insure against theft or accidental loss remains. Recovering lost bitcoin is as impossible today as raising ships from the floor of the Mediterranean would have been for the Babylonians thousands of years ago. Fulfilling that need is a different story,....
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Thanks to the innovation of blockchain technology, cryptocurrencies and many of the applications built around them benefit from incredible security that most traditional financial products struggle to match. This has led to the development of a huge range of decentralized finance (DeFi) products, which allow individuals and businesses to shop, invest, trade, and manage their money without relying on centralized intermediaries. For the first time, users have had full control of their money and their […]