Bitcoin vault with insurance opens in London

A new service called Elliptic Vault opened in London today, the main aim of the service is for people to be able to store their bitcoins in a safe place while knowing that if they are stolen they will be insured.

Elliptic co-founder Tom Robinson told the BBC, "One of the main concerns people have with Bitcoin is that it's quite difficult to store securely, Offering people insurance seemed an obvious step."

Robinson started the company with two friends, the first barrier they had to overcome was to find an insurer who was willing to insure bitcoins.

Robinson stated, "The industry is very conservative and they did not understand Bitcoin. "They were also influenced by the negative publicity Bitcoin received, although this has improved since Silk Road was taken down and stopped dominating the Bitcoin agenda."

If a customer does need to use the insurance service provided by Lloyds of London the payout will be calculated using the Bitcoin to US Dollar exchange rate at the time of the claim. 

Elliptic will be storing the bitcoins using a process known as "deep cold storage", this is the process of encrypting the bitcoin keys and then storing multiple copies of them within several layers of encryption on offline servers. The copies are only accessible by a select few of Elliptic's directors.

Around the world governments are trying to decide how to legislate for the bitcoin currency. Singapore has become the first country to issue a guide on how taxation should work, they have also put more checks in place to make sure illicit financing by criminals and terrorists does not happen.

Source: BBC | Image courtesy of blogthinkbig

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11 Comments

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I guess encrypting the wallet with a strong password is way too complicated for some people, you can also 7z the exported wallet with another strong password and then encrypt the file using Windows encryption.

At least that's what i do to files that are important

That will only happen if you don't backup your files, but even if that happens they cant get access to the account at all, and personally i have that 7z file over at SkyDrive, my Private FTP and other Cloud based storage. so even if my drive dies or my PC gets stolen, i have backups of everything important in multiple locations. is Security 101

A customer of mine wants to purchase a few bitcoins using a credit card, as he doesn't want to attach his bank account to an online site.. the odd thing is no one does this.

Llyods is going to make a mint on this. After any major (or even minor) theft, the Bitcoin value sinks. Sometimes it's after the wind changes direction in Ontario. They just index the claim to the tanked value and voilá! Pay fees in regards to 4 million USD supposed value, payout based on a 5 USD valuation.

D. S. said,
Llyods is going to make a mint on this

I hope its the real Lloyds of London that everyone knows and not a dodgy company called "Llyods of London" using the reputation of Lloyds!

Enron said,
I did better investing in Nokia Coin back when it was around $1.50.

You sure did. Bitcoin is to volatile to be considered an investment.