As the US economy continues to come into concern there is much uncertainty as to what the strength of the dollar will be over the coming years. Inflation is on the rise and the value of the US dollar is becoming increasingly less valuable in 2022. The cost of eating at a restaurant here in Naples, Florida for example seems to have doubled int he last 12 months. Gas is reaching all time high’s and rent prices have skyrocketed across the country. Businesses are getting hit with higher insurance premiums. Homeowners’ policies in Florida are increasing by 30%-40% leaving families and homeowners on a fixed income in a precarious situation – if they are unable to make the insurance payment then the bank will force place an insurance policy for $6k-$7k more than the policy they already couldn’t afford. If you cannot make the mortgage payment you lose your home.
It has become apparent to me that over the next 10-15 years the certainty of the global economy is unclear. Cryptocurrency will be the one unified global currency. As nations economies continue to struggle individually, I believe what we will see happen is that the citizens of these nations will be safeguarding funds from falling currency values. This is going to be especially true for impoverished nations where there is no access to banking along with communist or socialist countries that try to control wages and the money supply. Countries like Ukraine that are in active wars – and countries like Russia are even now turning to cryptocurrency as a place to secure money and financing in a anonymous and secure manner.
If the US economy fails and we see the same financial impact next year as… lets say… The Great Depression – my guess would be that many of the people in the US today would be running towards cryptocurrency as a means for safeguarding cash.
In the future – the more market share crypto holds in the global financial system – the more trust people will have in the system. This trust means that much of the volatility we see today in the crypto market will dissipate. Eventually most cryptocurrencies will be trading at nearly the same face value in my opinion. They will no longer be an investment like stocks and bonds that continuously appreciate (sometimes by thousands of %’s like SHIBA INU). They will be a form of currency that inflates/deflates with the world economy.
The only differentiating factor in choosing a cryptocurrency in the future will be security. Consumers will be asking: How secure are my funds form a volatility and cybersecurity standpoint?
In the absence of a clear answer of the question above regarding which coin is the most secure – I think that cryptocurrency insurance allows for a broader solution to the cybersecurity problem that crypto presents. I know of a handful of people that have been hacked and lost their entire portfolio’s of crypto. With cryptocurrency insurance this is not something you need to worry about.
The cost of this insurance ranges from 1.5%-3% of your portfolio and the limits of insurance rise and fall with the price of the coin. You can insure up to $1,000,000 in crypto and the covered losses include loss from hacks of exchange wallets, social engineering events caused by hacks to an exchange and general theft as defined in the policy. The insurance company offering this coverage is the largest and most well known in the world – Lloyd’s of London.
Until some type of “social insurance fund” similar to the FDIC is created for crypto this is a great solution to protect the funds being safeguarded in a crypto portfolio.
Contact our office today for a quote and explanation on the coverage.
