At a very basic level, According to bitpm, a man works to earn . He earns so that he can provide for his family, not only in the present but in the future as well. As he earns, he also saves a little and keeps it aside, for any future projects or contingencies. Now he does not know when he will die. If he drops down and dies suddenly, what happens to his family? That is where life insurance comes in.
To ensure that his family is provided for, he gets himself insured. He pays insurance company premiums to provide his family with a lump sum amount in case of his untimely death.
In case he does not die after a certain number of years, the insurance company returns the money invested, with interest. Now we come to a bit of a dilemma here. Let us say his family gets the lump sum that was promised. The value of that amount may not be much at the present time.
Is Cryptocurrency a Better Life Insurance?
Switch to the present scenario where cryptocurrency and blockchain technology seem to be the buzzwords. Cryptocurrency, not real currency, but in virtual form seems to be catching on with everyone wanting a slice of the pie. As a result, the value of the cryptocurrency has shot up to astronomical proportions in dollar terms.
Those who invested in cryptocurrency in its infancy are now millionaires or billionaires many times over! Bitcoin is perhaps the first and most well-known cryptocurrency. Withdrawing Bitcoin and spending Bitcoin is usually done over computers connected all over the world using blockchain technology which is considered safe and trustworthy. With blockchain technology, transactions do not have a middleman and are considered safe.
So, to get back to a man who wants to provide for his family, instead of buying insurance, what if he invests in cryptocurrency using blockchain technology? What if the value of his investment increases rapidly so that his family gets a good amount in the event of his death? Would that be a good option to consider?
On the face of it, it seems a great option to invest in cryptocurrency to take care of future contingencies. But we have a problem here. Since most cryptocurrency transactions are done online with passwords and security options, what if a man forgets his password or loses it? What if he dies and no one else knows his password? Then all his cryptocurrency is lost!
There could be a way out. People are working on “Dead Man Switch” options, where a person can set up a procedure of, say, signing in at certain times. If the person fails to sign in, the procedure starts the transfer of cryptocurrency to the person/s nominated. However, this option is still new and the kinks in the system are being worked out to make it as foolproof as possible.
Though people are spending bitcoin and withdrawing bitcoin in greater numbers, the technology is still evolving. Of course, more and more businesses are switching over to this new technology and getting on the bandwagon. Cryptocurrency is the way forward in the future and most people deem as the best life insurance.