“If you make one mistake, you can lose all your money… forever.”
This is how a friend summed up the crypto space to me a few years ago. He was explaining how to buy and sell Bitcoin.
As many of you know, when you buy or sell cryptocurrencies you must have the correct “key” (a long chain of letters and numbers) to dictate where your funds go.
If the key is off by one letter or number when you send your crypto to another person or address… it may be gone forever.
This is one of the reasons the crypto space is the new “Wild West” of finance. There are no do-overs. And the transaction can’t be cancelled or reversed.
Crypto exchanges have been hacked before. One of the most famous instances was the 2014 hack of Mt. Gox, an exchange based in Shibuya, Tokyo, Japan. At the time, Mt. Gox was handling over half of Bitcoin’s transactions, and the stolen amount was valued at more than $450 million dollars.
It happened again last week… The Zaif exchange, owned by the Tech Bureau Corp, is a digital currency exchange in Japan. Hackers stole about $60 million worth of Bitcoin and other cryptocurrencies.
People also lose cryptocurrencies because of fraudulent pump-and-dump schemes. And some crypto wallets (a storage device to keep cryptocurrencies) have even been hacked.
I’ve said for months that the crypto space needs some regulation. And investors have been waiting patiently to see what the SEC plans to do with this volatile industry.
Once SEC regulations take effect— which I expect to happen over the next year—it will remove uncertainty and open the floodgates for massive amounts of money to flow into the space.
We’re also starting to see another major group enter the world of crypto. One that will help bring cryptocurrencies mainstream…
Insurance reins in the Wild West
The big insurance players, such as AIG, Chubb XL Group, and Allianz are writing insurance coverage for the crypto space. Others will follow—this isn’t an industry that will turn down a new revenue stream.
Many insurance companies don’t give details on the types of policies they’re writing. But crypto-related businesses, exchanges, and even individual wallets may soon have insurance. And it’ll be huge for the crypto community.
While there’s something ironic about insurance companies using blockchain technology for efficiency in its own industry… while looking to help provide stability in cryptocurrencies… a bulletproof record can bring efficiency to all kinds of markets—I’m talking about payments (finance), logistics, health records, and yes, the insurance industry.
Insurance companies are already investing in blockchain technology to cut down on the amount of paperwork it takes to write insurance, collect facts for underwriting, and pay claims faster.
It’s only fitting they help insure the crypto market itself. And this is just the beginning.
Right now, the cost of insurance for crypto companies is high. But as the crypto market gains traction, and more insurance companies start writing policies, prices will come down.
I recently recommended a cryptocurrency to my Curzio Intelligence subscribers that’s working with one of China’s biggest insurers to streamline its business. It’s a crypto with the potential to disrupt combined markets of more than $15 trillion.
There are thousands of cryptocurrency companies for investors to sift through. Only one or two percent of them are worth paying attention to.
The simple fact is this: Few cryptocurrencies have the potential to be used by millions of people.
But if this company’s strategy works as planned, millions will use its technology. It could be similar to buying shares of Microsoft in the ‘80s.
To learn how to access this name—and more incredible opportunities in the crypto space—click here.