Friday , August 6 2021

A Bitcoin miner died in a plane crash: how to solve the crypto problem?

Rediscover the years' 90 when times were much simpler. Your digital assets in this age would only include your e-mail accounts (and maybe your IRC password). But in today's digital age, it includes photo archives, encrypted device backups, personal information held by search engines and, of course, cryptocurrencies.

Cryptocurrency is digital money that is protected by unbreakable encryption. It is stored in virtual portfolios and each portfolio has a public key that can be shared with anyone. And then there are the private keys that are held by the owners of the wallets. And of course, you can not access the funds stored in the wallet without your private key.

If the owner of the cryptocurrency dies and his private key is not known to anyone, the money they have stored in the crypt will never reach their legitimate heirs.

A cryptor miner died in a plane crash

Michael Moody, a 26-year-old man, died in a tragic plane crash. His father knew that Michael was using my Bitcoin, but he had no information on how much money he had and how to recover it. After fighting for years, he learned that he could not access his son's assets because they were all in an encrypted form.

Bitcoin is not regulated and decentralized, which makes it secure. But it also means that it is so secure that your legal heirs can not access it without the right information or private keys.


Coinbase solves the case of a Colorado investor

A Bitcoin investor, based in Colorado, died and left his undifferentiated estate. When the family checked their bank records, they found they had invested in Bitcoin. With the debts made to Coinbase, a popular cryptocurrency and wallet, they got to know its crypto ventures.

The family turned to Coinbase with legal documents relating to the death of the investor and the cryptic company agreed to transfer the contents of the portfolio. But, unlike the first case, this time the funds were archived and controlled by an exchange.

Solutions to the "problem" of cryptographic inheritance

If carefully planned, the inheritance of cryptography can be quite easy to manage.

The old school approach

It's simple: write it down. Just take a small notebook and write down the details of your cryptographic resources and where you have invested and stored. You can write the private key inside and store it in a hermetic, fireproof place that is only disclosed to a trusted person. Read the essential safety tips.

There are some pitfalls in this approach: the notebook can be found by a third person. Or the card could degenerate over the years. However, this is a very secure method and is safer than the delivery of data to third parties.

If your family members are not encrypted or have no idea how to access cryptographic portfolios, you can write a detailed procedure for them on how to recover funds in case something unexpected happens.

Trezor Recovery
Backup of your private key

The new technological approach

To simplify things, there are now some software solutions for the cryptographic inheritance dilemma. These software tools are still in their nascent phase and can not be completely trusted.

One of these apps is called Dead Man & # 39; s Switch. This app won the Tokyo Hackathon last year. It is a digital holder who can open cryptographic details and keys to beneficiaries when activated. If the owner of the wallet does not check-in the app for long, he will send an alert to confirm if they are alive.

If you still do not check in, the app will need three validators to confirm if the owner is dead. Subsequently, the app will require further validation by two public notaries. Once the validation processes have been completed, the details of the will will be disclosed to the beneficiaries.

Some exchanges offer the beneficiary service

There are companies that are waking up on the problem of inheritance and have started taking action. For example, Coinbase offers a payee service that will allow a deceased investor's family to access their assets. The heirs of the portfolio owner should provide documents such as the death certificate and proofs of the will to request the assets.

The legal connection

Unfortunately, the legality of the crypt is in a dense gray area. When writing your will, be sure to include all your cryptographic resources in it. Many jurisdictions can request your assets if they are not mentioned in your will. If you invest in cryptocurrencies, you have to keep in mind the future possibilities and inform your family of your resources.

Thinking about death can be a morbid experience, but it is better to be prepared. Regardless of the storage medium you choose: a digital ledger or a handwritten note, if your heirs have the fruits of your work, your goods must be addressed to them. If you do not plan it now, your cryptic wealth could become useless tomorrow.

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