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That's all true. It's also the only way anyone is going to trust an online bitcoin wallet. Why is it surprising that it would be expensive?



Not surprising; 'Insurance' is less likely to have the impact people are saying it will - either it will be incredibly hard to get insurance in the first place (making it more of a non-factor), and/or it will not provide the same level of coverage/safety-net as you get with a Bank, and hence BTC will never get to the same level of trust.

Either case, I don't think 'Insurance' is going to be the magic thing that will make BTC as viable as traditional currencies.




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