Quote from: andy10000 on March 21, 2014, 02:52:32 PM

Quote from: fr4nkthetank on March 21, 2014, 02:41:49 PM

insurance would be paid by.....whom?

the users?
the exchanges?

how much, what rates.....if the risk of loss is to zero, and that risk is high....then insurance becomes impractical

Ultimately it will be paid by the users. All business expenses are ultimately paid by their customers.

It would have to be paid by the users based on premiums paid and an initial bankroll of the company.

It would have to be a company like Allstate that has an escrow account for claims payable and paid directly to that.

In the event that a third party is liable for the loss, i.e. gox then the company could subrogate against them for reimbursement

All fine in theory however as btc is an unregulated market its very difficult.

Also you would have to insure based on an agreed upon current market value. If you insure at 500 but btc goes up to 1k and its stolen you would only get $500 worth of btc back. On the flip if you insure at $500 and it goes down to $200 then you would only get $200.