Bixin Follow Mar 30
· 3 min read
Jack, a man in his 30s, unfortunately passed away from a sudden illness.
While sorting out the relics, his wife was surprised to find that Jack had been investing in cryptocurrencies.He even owned 100 bitcoins, which are now worth more than $3.84 million.
But these bitcoins are locked in cold wallets, and Jack is the only person in the world with the private keys to these cold wallets.
Yes.After Jack’s death, it seems to mean that the money will never be available.
What happens to cryptocurrency after a person dies?
First, technically, nothing will change.
Bitcoins are stored on the blockchain, so there is a permanent record.This means that as long as the blockchain exists, your bitcoins will live forever, whether you live or die.
So will our family lose both the money and ourselves?
A person tragically dies without leaving any asset information.In this case, his family not only has to bear the pain of losing a loved one, but also have to accept the irretrievable loss of wealth.This is also a scene that the deceased does not want to see.
To put an end to these problems, some people write down their private key on a piece of paper
As a decentralized network, Bitcoin does not have a central governing body that controls user funds, so only the holders themselves can control their assets.
A custodial service called Coincover claims that over 4 million Bitcoin (just under 20% of all BTC) are lost forever.
Billions of US dollars in Bitcoin (BTC) are lost forever, in part, because heirs can’t get their hands on the inheritance.
Transferring the crypto funds to an heir after death..how to do it?
Rudy Steenhoek, an information manager in the Netherlands, is using a strategy that’s sometimes called the dead man’s switch.
Steenhoek has given his wife a hard drive with a special type of key, and if she uses this key, Steenhoek will receive a notification.If he doesn’t respond to that notification within a certain amount of time, the tech will presume he’s incapacitated or dead, and his wife will automatically gain access to information she can use to find his crypto assets.
While this sounds complicated, his wife won’t need to convince any bank, or even Safe Haven — the company providing the tech — that she’s his rightful inheritor.
Ultra wealthy people can afford an approach that isn’t as jerry-rigged, and have turned to one of their favorite ways to protect their money, like trusts and family offices.These people are storing their crypto with specialized financial institutions that focus almost entirely on managing the crypto assets of the financial elite.
The majority of crypto holders are relying on exchanges like Binance and Coinbase, which allow people to trade and sell crypto on the internet.Some wallets will also launch their own Mutual-wallet to facilitate users to manage assets more securely
In brief, Mutual Wallet is a wallet that allows multiple people to manage, it’s suitable for couples mutual assets or Financial control in Small- or middle-size companies.
If a couple has a certain amount of mutual crypto assets, it is recommended to use 2–2 authorization methods in the Mutual Wallet, so that any transaction should be authorized by both of them to be approved.
If a partnership requires to transfer large amounts of money on a daily basis, it is recommended to use 3–5 authorization methods in the Mutual Wallet, so that only if three of the mutual managers all authorize the payments, the assets from the Mutual Wallet can then transfer..
