Could cryptocurrency “insurance” slow Bitcoin adoption?

Does the concept of cryptocurrency “insurance” undermine the purpose of “being your own bank”? Recently I have seen more Bitcoin related companies offer some sort of insurance for Bitcoins stored in their custody and am concerned with its unintended effects.

Nobody likes the financial losses than result from hacking, but I always thought that the decentralization of control of our own money was one of the primary benefits of Bitcoin.

Education (of best security practices) and the rise of multisignature transactions and decentralized exchanges such as Bitsquare can greatly reduce the need to entrust 3rd parties with your Bitcoin.

Insurance adds cost to the system (negating part of the financial advantage Bitcoin has over Visa and Western union) and encourages trusting 3rd parties with Bitcoin safekeeping (increasing centralization of control) over learning how to safely secure it yourself (retaining full control).

Could cryptocurrency “insurance” slow Bitcoin adoption? If so how can we encourage educational efforts as a better solution. Are regulators or the free market the primary promoters of cryptocurrency insurance?

Recent Questions – Bitcoin Stack Exchange

How do I calculate expected earnings when mining a cryptocurrency?

If I have access to currency-specific variables/datasets for any cryptocurrency of choice (see below), how would I calculate which cryptocurrency (out of a fixed set of say 3-5 altcoins — SHA-256 and Scrypt only) would be most profitable to mine at a given time?

Given: difficulty, hash rate (network), block count, block time, block reward, exchange rate, and exchange volume.

To be more specific, I’m wondering what math would go into calculating Expected Earnings/(MH/sec) for each cryptocurrency with this data? I’m not not necessarily asking for something like http://www.coinwarz.com/cryptocurrency/ that takes your own device’s hash rate and power consumption:power cost ratio to determine individual profitability, I’m talking about a general calculation where the output is in the units ‘Expected Earnings/(MH/sec)’

(I’m not sure how complicated a calculation like this is, so I’m not asking for exact math or anything just where/how to start with a problem like this)

Recent Questions – Bitcoin Stack Exchange

Russia Is Considering Its Own Cryptocurrency

The Russian Ministry of Finance, known for its disdain and intent to criminalize bitcoin activity, is considering the issuance of a state-controlled cryptocurrency in discussions with banks and regulators. The idea of a state-controlled cryptocurrency in Russia is currently being deliberated in meetings between the Russian Ministry of Finance, the Central Bank of Russia and […]

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