Insurance industry is playing a larger role in the world of digital currencies
Lloyd’s of London has released a new report that highlights the risks associated with digital currency, particularly Bitcoin. These currencies are becoming more common throughout the world, being used to purchase products online. In the case of Bitcoin, volatility is a very serious concern, as the value of a single Bitcoin fluctuates wildly on a regular basis. The report from Lloyd’s of London is meant to shed some insight on the risks associated with insuring businesses based on Bitcoin.
Bitcoin continues to be accosted by threats
Bitcoin has become one of the most prominent digital currencies in the world. The currency is often beset by price fluctuations and cyber attacks, but has continued to experience steady growth over the past several years. As the currency becomes more important, the insurance industry is beginning to play a role in protecting this currency. Bitcoin exchanges and providers have begun seeking out insurance policies that will protect them from significant losses that they face.
Bitcoin businesses will have to become more aggressive with security in order to avoid serious problems
Bitcoin companies will not be able to rely entirely on the insurance industry for protection, of course. These companies will have to take measures to ensure that they are protected from attacks and other risks. Insurance companies can offer some moderate protection, but the relative youth of digital currency means that insurers have not yet become fully aware of the risks that exist in the world of digital currencies.
Dynamic threats will continue to have an impact on the Bitcoin business
The report from Lloyd’s of London notes that companies involved in Bitcoin will continue to face dynamic threats. These threats will be present regardless of what security standards these companies follow. The insurance industry may have to adapt to the world of digital currencies in order to provide the appropriate level of protection that companies will need to manage risks. Such protection could add some stability to the Bitcoin business, making the currency more reliable.
