Bitcoin (BTC) is immortal, not its holders: how to ensure the transmission of private keys while avoiding compromising the security of a BTC wallet or the decentralization of the network? Can the blockchain play the role of BTC notary? Besides halving and increasing hashrate, bitcoiner deaths increase the scarcity of Bitcoins in circulation.
4 million BTC buried
What will happen to Bitcoins upon their death of their holder? Bitcoin being a decentralized network with no central financial institution to control user funds, only owners can move their assets.
Millions of dollars in crypto are lost every year when their owners die.
The insurance company Coincover estimates that 4 million BTC are currently out of circulation.
Means exist to ensure that Bitcoins be passed down from one generation to the next.
The first solution is to share the access keys with family members. One of the early proponents of Bitcoin, Hal Finney, had left his keys to his children shortly before his death.
This method is not suitable for everyone since this sharing comes with the responsibility to keep Bitcoins safe.
Although Bitcoin in itself does not care about inheritance issues, some exchanges can unlock access to crypto accounts upon presentation of a death certificate, for example Coinbase or Binance.
Companies like Safe Haven, Casa and TrustVerse develop blockchain-based solutions that ensure the transmission of a legacy.
The CEO of Safe Haven, Dujardin Logino, indicated that its digital legacy platform, Inheriti, allows the storage of encrypted information about cryptocurrencies.
However, these services are in the early stages of their development and are generally chargeable.
Backup by Safe Haven for example, costs between $ 20 to $ 40 in the company’s native token, the SHA.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
The initiative of exchanges giving access to a crypto account, without the consent of its deceased holder, may resolve the issue of cryptocurrency inheritance, but it once again calls into question the issue of decentralization. Should we update all the blockchains, to add a feature relating to the management of crypto inheritances? The paradox would be to keep his private keys, his physical BTC wallet, in the vaults of a bank: it would taste like a dish with an unbalanced flavor, gourmet cuisine mixed with junk food.
Litecoin, welcome in the Silver Age