<p>Currencies don't have insurance, financial institutions do.</p>
<p>Bitcoin was designed to operate without trusted third parties.</p>
<p>If you are trusting third parties and need insurance, that is not something that can be arranged by people who make wallets or who design cash</p>
<p>To put it another way, if you buy a leather wallet from Wal-Mart or from a Gucci store, and use that to take cash to a bank, neither Wal-Mart nor Gucci insure you against  bank failure.</p>
<p>The US Bureau of Engraving and Printing (<a href="https://www.moneyfactory.gov/" rel="nofollow noreferrer">https://www.moneyfactory.gov/</a>) may print Dollar bills/banknotes and design their security features but they don't run FDIC.</p>

CC BY-SA 4.0
2021-08-24T08:26:21.730Z
2021-08-24T08:52:19.610Z
2021-08-24T08:52:19.610Z
RedGrittyBrick
<p>How will the Bitcoin Crypto market compete against theft, if other fiat currencies have similar to FDIC insurance?  In this article, some thieves did a phone swap, got a two factor authentication code, and stole money from Coinbase.</p>
<p><a href="https://www.abcactionnews.com/news/local-news/i-team-investigates/cryptocurrency-accounts-wiped-out-in-an-instant-by-cyber-crooks" rel="nofollow noreferrer">https://www.abcactionnews.com/news/local-news/i-team-investigates/cryptocurrency-accounts-wiped-out-in-an-instant-by-cyber-crooks</a></p>
<p>I prefer not to use Cold Storage, as I am lending my crypto out at 5% interest.</p>

<bitcoin-core><blockchain>
Crpyto Bitcoin Insurance
mattsmith5
# Crpyto Bitcoin Insurance

(Asked by: username_0 on 2021-08-24)

How will the Bitcoin Crypto market compete against theft, if other fiat currencies have similar to FDIC insurance? In this article, some thieves did a phone swap, got a two factor authentication code, and stole money from Coinbase.

<https://www.abcactionnews.com/news/local-news/i-team-investigates/cryptocurrency-accounts-wiped-out-in-an-instant-by-cyber-crooks>

I prefer not to use Cold Storage, as I am lending my crypto out at 5% interest.

**Tags:** bitcoin-core, blockchain


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## 1 answers

### Answer by username_1 on 2021-08-24. Score: 4 | Accepted answer

Currencies don't have insurance, financial institutions do.

Bitcoin was designed to operate without trusted third parties.

If you are trusting third parties and need insurance, that is not something that can be arranged by people who make wallets or who design cash

To put it another way, if you buy a leather wallet from Wal-Mart or from a Gucci store, and use that to take cash to a bank, neither Wal-Mart nor Gucci insure you against bank failure.

The US Bureau of Engraving and Printing (<https://www.moneyfactory.gov/>) may print Dollar bills/banknotes and design their security features but they don't run FDIC.


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