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Is Insurance Crucial for Cryptocurrency to Penetrate Mainstream Markets?

The world of cryptocurrency is grappling with considerable challenges following its tumultuous boom and subsequent decline, which garnered significant media attention. The process of mainstream integration has been uneven, partly due to the difficulty in securing regulatory approval. The risk of theft - whether via hacking or other means - poses a considerable barrier in attracting mainstream investment.

Since access to crypto holdings is solely via a unique private key, these assets are at risk of loss. This risk is heightened if the key is kept in a physical form, such as on paper or a hard drive (referred to as 'cold storage'), or through digital breaches if stored in an online wallet. As reported by Reuters, a staggering $800 million worth of crypto assets were stolen in the first half of 2018 alone, leading to understandable apprehension from both individual owners and traditional financial institutions.

Insurance coverage could potentially address some of the risks inherent to cryptocurrency ownership, provided insurers are open to it. Asia has demonstrated a more rapid adoption of cryptocurrency regulations. Thomas Cain, Aon's regional director of commercial risk solutions in Asia, disclosed to Reuters that the risk advisory firm received around two dozen inquiries in 2018 from exchanges and crypto vaults seeking insurance. He indicated that insuring companies with substantial crypto assets is feasible. However, due to the novelty of the asset class and the publicized breaches, applicants need to distinguish themselves.

This novelty often disadvantages cryptocurrencies. An anonymous cryptocurrency broker reported that "insurers struggled to comprehend [cryptocurrency] and its implications", leading to limited coverage. Some industry insiders argue that the lack of insurance coverage discourages large fund managers from investing in an emergent market without the added security of comprehensive regulations. As per Henri Arslanian, a crypto and fintech specialist at PricewaterhouseCoopers in Asia, "most crypto-focused institutional firms want to purchase adequate insurance, and often, securing sufficient insurance coverage is a regulatory or legal necessity."

However, the winds of change may be blowing. Fidelity and Japanese investment bank Nomura have launched platforms offering digital asset custody services. If these solutions gain acceptance among traditional institutions, they may help to resolve insurance-related issues. This could mark a significant step towards the institutionalization of cryptocurrency assets, especially considering a September 2018 survey by Greenwich Associates revealed that 72% of polled asset managers see a place for cryptocurrency in the future. Nevertheless, the question remains whether the necessary infrastructure will be established in time.

Confused About Which Cryptocurrencies to Buy or Sell and When? Consult AI.

Tickeron has developed an AI capable of identifying patterns and trends in cryptocurrency markets and can provide trade ideas directly to your inbox. Once the AI identifies a bullish or bearish pattern, it notifies users and provides a predicted target price for the cryptocurrency's trajectory. The AI can be utilized to track almost any cryptocurrency of your choice.

Moreover, the integration of AI can significantly streamline decision-making processes for crypto traders. Equipped with the ability to scan through vast amounts of market data, AI algorithms can make accurate predictions on market trends and coin prices. This not only eliminates the need for manual analysis but also reduces the risk of human error.

Furthermore, Tickeron's AI offers the potential to democratize trading, giving novices and experts alike access to sophisticated analysis usually reserved for seasoned traders or large investment firms. It can identify opportunities in the market that a human trader may overlook and send real-time alerts, giving investors a crucial edge in the rapidly fluctuating crypto market.

The use of AI for cryptocurrency trading represents a fusion of technology and finance. However, like cryptocurrency, it's still in the early stages of adoption. While the benefits are promising, potential users must remain aware of the potential risks and make informed decisions based on thorough research.

Although the blend of insurance, regulatory approval, and technological advancements like AI may not solve all the challenges faced by the cryptocurrency market, they indeed can significantly aid in its mainstream adoption. Encouraging signs of progress are evident, with prominent financial institutions launching digital asset services and growing interest from asset managers.

As the crypto market continues to evolve, the crucial question remains: will these developments be sufficient and timely enough to usher cryptocurrency into the mainstream financial ecosystem? The landscape of digital assets is changing rapidly, and while we can make educated predictions, only time will provide a definitive answer.

Tickeron's Offerings

The fundamental premise of technical analysis lies in identifying recurring price patterns and trends, which can then be used to forecast the course of upcoming market trends. Our journey commenced with the development of AI-based Engines, such as the Pattern Search Engine, Real-Time Patterns, and the Trend Prediction Engine, which empower us to conduct a comprehensive analysis of market trends. We have delved into nearly all established methodologies, including price patterns, trend indicators, oscillators, and many more, by leveraging neural networks and deep historical backtests. As a consequence, we've been able to accumulate a suite of trading algorithms that collaboratively allow our AI Robots to effectively pinpoint pivotal moments of shifts in market trends.

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