<p>So far as I am aware, no currency, whether fiat or cryptocurrency offers intrinsic insurance against accidental loss of cash.</p>
<p>For example is a shopkeeper takes dollar bills from their cash register and drops it unnoticed in the street on the way to the bank, they will not be covered for that loss by the US treasury. The shopkeeper will only be covered by any relevant insurance whose cover includes that kind of loss.</p>
<p>Bitcoin insurance exists in the same way that dollar insurance exists for cash.</p>
<p>Bitcoin was designed to do away with trusted third parties such as banks therefore there is no need for government organised recompense for bank failure.</p>

CC BY-SA 4.0
2021-04-18T09:15:47.023Z
hi, not referring to losing money on the street, but losing money at the bank,  equivalent to losing money in Coinbase brokerage etc ,if money is hacked like two years ago when reading news etc, thanks
mattsmith5
CC BY-SA 4.0
2021-04-18T09:16:12.770Z
interesting though, just reading these articles now https://www.investopedia.com/news/cryptocurrency-insurance-could-be-big-industry-future/  https://www.coincover.com/theft/bitcoin-insurance
mattsmith5
CC BY-SA 4.0
2021-04-18T09:16:36.937Z
@mattsmith5: Bitcoin was designed to make banks redundant. So no need to care if banks fail if you use Bitcoin as intended.
RedGrittyBrick
CC BY-SA 4.0
2021-04-18T09:19:19.543Z
not referring to banks failing, but if coinbase, or robinhood fails, etc
mattsmith5
CC BY-SA 4.0
2021-04-18T10:04:26.467Z
@mattsmith5: That's like putting **dollars** into [a business that isn't a bank](https://en.wikipedia.org/wiki/Bernie_Madoff#Size_of_loss_to_investors), there's no insurance managed by the US treasury department for people who give dollars to fund-managers or other businesses. Dollar investors lose their shirts when such businesses fail. Bitcoin was designed as cash, definitely not as some ultra-safe investment consortium.
RedGrittyBrick
CC BY-SA 4.0
2021-04-18T09:12:06.077Z
2021-04-18T09:17:15.620Z
2021-04-18T09:17:15.620Z
RedGrittyBrick
<p>If fiat bank money is stolen, or bank is fire/damaged, we have banking insurance. If hard money gold is stolen, it can always be replenished with Lloyds of London insurance, or with a mining annual growth rate of 2% per year.</p>
<p>If Bitcoin money is hacked (as it was in past), USB Drive destroyed, or the bitcoin is missing, how can a person recoup their losses?</p>
<p>Some of us agree, slight inflation 1-2% helps insure against losses (just like FDIC insurance, or gold insurance). Of course large inflation, where governments finance war, pointless government programs with inflation of 20-30% year is too much.</p>
<p>The question is, How will Bitcoin solve the insurance issue? Can be it a good storage of value to families if its lost?</p>
<p>Note: I'm aware fiat or gold insurance, will not work if 3rd party insurance is lacking funds. It can work however, last time, someone stole money from friend's bank account. Does bitcoin offer any level of insurance?</p>

CC BY-SA 4.0
2021-09-02T16:23:09.897Z
This question seems to be based on a false premise. Is there anybody who is saying that bitcoin is a good store of value for families? Obviously, its volatility makes it a terrible store of value for families.
David Schwartz
CC BY-SA 4.0
2021-09-02T16:33:16.613Z
hi @DavidSchwartz thats what many supporters are saying
mattsmith5
CC BY-SA 4.0
2021-09-02T17:05:11.447Z
Well, they're obviously wrong. Its volatility makes it a terrible store of value. It may become a useful store of value in the future, but it's definitely not a good store of value for families today.
David Schwartz
<bitcoin-core><blockchain>
What happens if I lose Bitcoin Investment, is there Bitcoin insurance?
mattsmith5
# What happens if I lose Bitcoin Investment, is there Bitcoin insurance?

(Asked by: username_0 on 2021-04-18)

If fiat bank money is stolen, or bank is fire/damaged, we have banking insurance. If hard money gold is stolen, it can always be replenished with Lloyds of London insurance, or with a mining annual growth rate of 2% per year.

If Bitcoin money is hacked (as it was in past), USB Drive destroyed, or the bitcoin is missing, how can a person recoup their losses?

Some of us agree, slight inflation 1-2% helps insure against losses (just like FDIC insurance, or gold insurance). Of course large inflation, where governments finance war, pointless government programs with inflation of 20-30% year is too much.

The question is, How will Bitcoin solve the insurance issue? Can be it a good storage of value to families if its lost?

Note: I'm aware fiat or gold insurance, will not work if 3rd party insurance is lacking funds. It can work however, last time, someone stole money from friend's bank account. Does bitcoin offer any level of insurance?

**Tags:** bitcoin-core, blockchain

> **Comments:**
> **username_1**: This question seems to be based on a false premise. Is there anybody who is saying that bitcoin is a good store of value for families? Obviously, its volatility makes it a terrible store of value for families.  
> **username_0**: hi @username_1 thats what many supporters are saying  
> **username_1**: Well, they're obviously wrong. Its volatility makes it a terrible store of value. It may become a useful store of value in the future, but it's definitely not a good store of value for families today.  

---

## 1 answers

### Answer by username_2 on 2021-04-18. Score: 1 | Accepted answer

So far as I am aware, no currency, whether fiat or cryptocurrency offers intrinsic insurance against accidental loss of cash.

For example is a shopkeeper takes dollar bills from their cash register and drops it unnoticed in the street on the way to the bank, they will not be covered for that loss by the US treasury. The shopkeeper will only be covered by any relevant insurance whose cover includes that kind of loss.

Bitcoin insurance exists in the same way that dollar insurance exists for cash.

Bitcoin was designed to do away with trusted third parties such as banks therefore there is no need for government organised recompense for bank failure.

> **Comments:**
> **username_0**: hi, not referring to losing money on the street, but losing money at the bank,  equivalent to losing money in Coinbase brokerage etc ,if money is hacked like two years ago when reading news etc, thanks  
> **username_0**: interesting though, just reading these articles now https://www.investopedia.com/news/cryptocurrency-insurance-could-be-big-industry-future/  https://www.coincover.com/theft/bitcoin-insurance  
> **username_2**: @username_0: Bitcoin was designed to make banks redundant. So no need to care if banks fail if you use Bitcoin as intended.  
> **username_0**: not referring to banks failing, but if coinbase, or robinhood fails, etc  
> **username_2**: @username_0: That's like putting **dollars** into [a business that isn't a bank](https://en.wikipedia.org/wiki/Bernie_Madoff#Size_of_loss_to_investors), there's no insurance managed by the US treasury department for people who give dollars to fund-managers or other businesses. Dollar investors lose their shirts when such businesses fail. Bitcoin was designed as cash, definitely not as some ultra-safe investment consortium.  

---

