We had known that Mt. Gox was going to go down for some time, and earlier this February it finally happened. After the Japanese company filed for bankruptcy, some pundits declared Bitcoin dead, while others stated that the end of the exchange could only make Bitcoin grow stronger.
Indeed, the latter were right, but not for the reasons they predicted.
Inscrypto is what Bitcoin has needed for years. It is (or I should say: will be) a privately insure for Bitcoins. It’s like the FDIC, except, like Bitcoin, it’s decentralized. And that’s appealing to most Bitcoin holders.
How do I know that? Let’s look at some demographics. According to a voluntary study completed last year, the average Bitcoin user is male (96%) and libertarian/anarcho-capitalist (37%). While the average age is 32.1, most Bitcoin users are between the ages of 25 and 29.
People within Bitcoin’s biggest demographic—regardless of political affiliation—are notoriously risk averse when it comes to money. In fact, it has been reported that young people are as personally financially conservative as those who were in their 20s during the Great Depression (likely because we came of age during the Great Recession). And while they aren’t crazy about big business (unless it’s the right big business, like Google or H&M), they still like some form of security coming from an authority.
Their biggest fear? “Regulatory and legal intervention.”
So here’s why Inscrypto is a game changer. The people already buying into Bitcoin are averse to government and probably risk takers, so a government backing Bitcoin would be repellent to them. That a private business is filling that gap is absolutely gold to them. But that’s just for Bitcoin’s existing subscribers—what about attracting new members?
Inscrypto will bring a way for young people to take less risk when investing in Bitcoin. And as they value insurance everywhere else, having the option to insure will attract them to the cryptocurrency in spite of its uncertainty. They will pay a premium for this service—and likely not think twice about it.
Older generations might think Inscrypto is silly—that the chance of losing Bitcoin is lower than the costs of buying insurance. But that’s the great thing about Bitcoin once again. Not everyone has to buy into the insurance, nor the exchanges that will undoubtedly crop up who use Inscrypto-style insurance providers. Unlike after the Great Depression, this time it isn’t the government. This time, it’s private enterprise.
Once Inscrypto is launched, expect a greater slew of young people to buy in—not just to Bitcoin, but to all crypto-currencies that have insurance providers.