There is likely a very big change coming to crypto land.
Today I received an email that likely is going to play a very big role going forward.
It is most likely going to be forgotten about and dismissed at first, however, over time it will likely mark one of the most important changes we see in all of 2018.
What am I talking about you might be wondering?
I'm talking about this!
One giant leap for crypto-kind!
Today I received an email from the Gemini cryptocurrency exchange.
You know, the one being run by the Winklevoss twins?
In the email they said that they had now secured insurance for all the holdings in their hot wallet.
Come again?
Yes, the Gemini exchange now has insurance coverage for all the holdings in their hot wallet, which means that customer funds are now basically protected on the same level as that of a traditional brokerage exchange.
Wow!
Why this matters:
In the past when an exchange's hot wallet was hacked, customer funds were often stolen before the customer even knew they were missing.
The customer was most likely out of luck unless the exchange decide to cover the losses themselves, which we have been seeing more of lately.
However, if something like that were to happen now on the Gemini exchange, customers are fully covered by insurance.
This is exactly what has to happen in order for the masses and big time institutions to invest in this space.
When people are asked why they don't own any bitcoin, most that know anything about it will respond with something along the lines of them not trusting the cryptocurrency exchanges.
Why should they?!
It's been worse than the wild west out there for anyone holding anything on an exchange.
This changes everything!
Now, with insurance on board, people will have their holdings protected on another level that hasn't been available up until now.
This is likely a feature that is going to be adopted by many exchanges going forward.
If an exchange doesn't insure their hot wallet holdings, people are simply going to go to the exchanges that do.
They will speak with their feet, which in turn will cause just about all of the major crypto exchanges to start insuring their holdings as well.
The domino affect will then improve the investing place for everyone.
You heard it here first, this is the beginning of all major crypto exchanges being insured going forward.
Stay informed my friends.
Image Source:
https://blog.zebpay.com/is-storing-bitcoin-with-zebpay-safe-ab44bb7de5b9
