For these reasons, insurance companies are reluctant to take Bitcoin risk

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Founded by tech billionaire Elon Musk, Tesla has recently secured all of its $ 1.5 billion bitcoin investment against the myriad of problems it may face, such as hacking, theft and fraud.

Musk said last month that Tesla customers could now use Bitcoin as a method of payment.

Despite this, a CNBC report stated that the scant regulation and fluctuating prices of Bitcoin and other cryptocurrencies are making many insurers reluctant to take risks, despite the growing demand for digital asset protection and the personal liabilities of managers and CEOs of companies that deal with cryptocurrencies.

Insurance companies and brokers estimate that of the few who offer such insurance, none of them can provide coverage in excess of $ 750 million to any client.

US-based cybersecurity firm CipherTrace put reported losses from theft, piracy, and fraud totaling $ 1.9 billion in 2020.



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