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Bitcoin insurance? A new fund is banking on it

Insuring bitcoin investors

If bitcoin is going to survive as a digital currency, it's going to have to convince investors their holdings are safe.

That's been a huge problem lately as two exchanges recently have shut down due to hacker attacks, drawing unwanted headlines and adding fuel to detractors who believe cryptocurrencies are untrustworthy stores of wealth.

Enter Falcon Global Capital, a San Diego firm launching a fund this month that will offer investors access to insurance should their bitcoins suddenly disappear, as they have for other unfortunate believers operating in the Mt.Gox or Flexcoin exchanges.

That insurance comes through London-based Elliptic, which is willing to stand strongly enough behind bitcoin that it will offer reimbursement for those subjected to theft or other circumstances.

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