One thing I’m learning more and more is a vast number of bitcoin owners own no insurance for their asset. This doesn’t come as a complete shock. And I should mention my sample size is imperfect. So I could be wrong.
But day by day I keep talking to significant bitcoin holders – actual whales, as they’re known – and many say the same thing: “My bitcoin is not hedged.” Nor are they borrowing against the asset for leverage or to increase capital; nor are they getting any yield.
Let’s breakdown this down: if you own a house, car, boat, you own insurance. You can insure these things because they’re property. Bitcoin is property. AON insures bitcoin; yet few people are insured against hacks or thefts.
In other news, home owners refinance homes to take cash loans to pay bills, take trips, invest in a small business. If you run a digital asset hedge fund you could forgo the 2% management feed & collateralize your core asset to finance operations. My sense is this hasn’t dawned on people: which is odd since traders will cross the street in heavy traffic to find the best Happy Hour deals.
You know something is brand new when the value proposition is such a screaming buy and yet adoption is so slow. Look at Tesla. How many conservationists have bought one. And when will change occur.