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Can Blockchain Power Insurance Domain – Part 3?

In my previous post in the series – “Can Blockchain Power Insurance Domain”, I have elaborated two other potential markers that would require blokchain’s aid to make the insurance sector gain good traction on the data front. The markers described are purely related to the kind of data that would disrupt insurance sector and its capture and maintenance methods through blockchain and other technological advancements. However it doesn’t talk about how Blockchain can empower the operations and procedures involved directly in insurance proceedings. This last post would be completely dedicated to the same cause. Let’s look into how blockchain can transform the operating procedures of insurance domain:

Updated Distribution and Payment models:


Many global insurance providers are collaborating and developing alliances to identify new payment business models (like bitcoin and other cryptocurrencies),to efficiently handle data through a single global ledger. More efforts have been dedicated to increase automation to proactively capture risk data in contracts also offers new opportunities to build market knowledge. This in turn helps in streamlining payment methodologies suitable to the needs of the users. On top of that, at the least, Global insurers can cut down on the asset management costs, by reducing the hedging fees that they generally pay to protect themselves from the currency fluctuations that exposes them to risk in the international transactions.



Reinsurance has always been a hot topic in the insurance sector where, expiration of insurance period might require parties to renew their policy by manual process. For industries and for the insurance of automobiles, smart contracts can be designed that would diligently cut down the work that is put in by middle men in re-enabling the policy. Also when a particular insurer is seeking to offload an equal amount of risk to two separate insurers. A blockchain ledger can provide insight and notification if one of those reinsurers then tried to offload some of its portion to a subsidiary of the other reinsurer.

Hence we see that from detection of fraud claims to stream lining the data for exploratory analysis, Blockchain also weighs good on the process optimization front of insurance sector and has true potential to power it in the time to come.

How to invest in Bitcoin Profitably – Part 3?

In the previous post of the “How to invest in Bitcoin profitably” series, I explained how indirect investments in Bitcoin would work. Though the methods described can be heralded as safe or risk averse, the returns are substantially small and are incurred over longer durations. But part 1 explained methods that are pretty risky if the market gets volatile. So people more often ask me a smart way of investing in the cryptocurrency where either the risk is not too high but the returns are substantial or a way that gives them additional benefits apart from the profits for the kind of risk they are incurring. Well there are a couple of ways and that is what this final post in the series of bitcoin investment posts is about. Let’s look into those methods:

Bitcoin Investment Trust’s GBTC:

‘Bitcoin Investment Trust’ was launched in 2013 by Barry Silbert, is an open ended trust that is invested exclusively in bitcoin and derives its value solely from the price of bitcoin. It enables accredited investors, with annual incomes greater than $200,000 or assets of more than $1 million, to gain exposure to the price movement of bitcoin for a minimum investment of $25,000 without the challenges of buying and securely storing bitcoin. The price of GBTC shares roughly account for 10% of Bitcoin price and hence people wouldn’t be directly exposed to the risk of Bitcoin. It also gives you additional tax benefits apart from the reduced exposure.

Bitcoin Investment Retirement Account:

While GBTC holds good promise, it is available only for accredited investors. The other instrument which is the most common one, that also provides tax benefits along with good return on investments in Bitcoin would be Bitcoin IRA. Bitcoin IRA allows users of any scale to invest directly in Bitcoin and hence directly apes investments in real time Bitcoin markets. The customers hold the Bitcoin directly where Kingdom Trust acts as the custodian and BitGo secures the cryptocurrency. The firm uses Genesis Trading to purchase Bitcoin and has an annual contribution limit of $5000.

Due to GBTC’s limited availability, Bitcoin IRA proves to be the better option with good amount of returns aggregated over a period of time. It would also provide tax benefits and good exposure to Bitcoin markets.