P2P Insurance and Smart Contract model Insurance

Financisto 2016-05-13 06:43:40 UTC #1

Hello gentlemen,

While reading about the following “crypto-insurance” projects:

[ Teambrella ]

[ InsurETH ]

[ Peercover ]

I was thinking persistently: “those insurance projects are doomed to fail due to bitcoin’s/ether’s volatility. Only stable cryptocurrency (NuBits) might be viable (maybe using some reputable signers system like B&C Exchange or something else).”

Prediction Markets have similar issues (for long term bets) IMO.

Am I the only one to have that point of view?

Wouldn’t that kind of projects be more compatible with Nu?

masterOfDisaster 2016-05-13 06:50:30 UTC #2

Oh yes, Nu’d be much better suited for them.
But I bet that if you want to propose NBT as the currency for denominating the contracts, there will be complaints about Nu failing etc. risking the business purpose.
That’d be strange, because BTC and ETH can fail as well and NBT at least introduce price stability, but you should expect that kind of complaints when starting discussions

mhps 2016-05-14 17:36:22 UTC #3

Having most of its reserve in BTC, Nu needs an insurance for itself to mitigate BTC volatility risk. Shareholders paid custodians buying options could do this for Nu efficiently I think, on those high leverage btc exchanges.

Financisto 2016-05-16 07:46:13 UTC #4

Interesting point of view.

Maybe that should even bring more stability and mitigate risks for Nu.

That way Nu could stand strong and resilient against an hypothetical Bitcoin catastrophic crash…