Cryptocurrency

Should Bitcoin Owners Make A Will?

If you own Bitcoins, how can you be sure your coins will be safe in the event of your death? This is a rather pertinent question and one that needs to be delved into, no matter what your age is. A large number of Bitcoin holders are youngsters but even they are concerned about their assets. They are able to trade like a pro using automated apps like immediate profit app that also save their energy and time. As owners, they also have the right to do what they wish to with their Bitcoins, just like any other investment asset. And in the event of their death, they still have rights to their crypto assets.

The risks of misplacing or losing crypto assets are much higher than traditional assets. Traditional assets can be retrieved but crypto coins are stored using blockchain technology, and if you misplace your private keys, you cannot access your wallets. Lost keys cannot be recovered. This may be a huge risk for cryptocurrency owners but it is also the blockchain’s biggest strength. The private key is so confidential that not even the exchange will be able to access your funds. This explains why crypto coin inheritance has proved to be a key concern in recent times.

In 2018, QuadrigaCX, a popular Canadian cryptocurrency exchange, suddenly shut down its operations because of the sudden death of its CEO and founder Cotten. He had filed a will a few days prior to his death and bequeathed all his assets to his wife. Since he alone had private keys to the company cold wallets, his employees could not access his assets. But when the exchange went offline, it denied all its customers of the money that was rightfully theirs. This brings us to the question whether having a will is enough when only the will maker has private keys and the funds cannot be retrieved in his absence.

When you make a will, you can leave your crypto funds to a person who you wish to entrust your wealth to. This could be anyone, your spouse, close friend, or attorney. According to reports, millions of crypto funds have been lost because most crypto holders had not shared their private keys with anyone. Bitcoins, one must understand, are indestructible. So, it is important to have a cryptocurrency will for your loved ones so that they can inherit these in the event of your demise. For people who are not in favor of a will, they can protect their digital assets by writing down account details or private keys physically in documents and then storing these in a fireproof safe or other secure location. This location will only be known to their inheritance attorney or trusted inheritor. You may also consider securing it in enterprises offering crypto asset inheritance. As of now, there are many platforms like Safe Haven, Trust Verse, and PassOn that allow crypto owners to pass on their funds to their trusted inheritors. Others like 23-year old Jack Davies is thinking of drawing up a will for ensuring that all his crypto assets get handed over to the right people in case he dies.