Inheritance: A Serious Subject Not Many Crypto HODLers Are Paying Attention To
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Without a detailed plan to transfer the private keys when the time comes, your crypto assets are pretty much useless to your loved ones
According to a report from Crypto.com, the total number of crypto users could reach one billion worldwide by the end of 2022, up from 295 million in December 2021. Most crypto traders and HODLers are still in their youthful years, and haven’t given much thought to death or inheritance yet. Very few have an inheritance plan in place to ensure that their loved ones can access the assets after they are gone.
Over the years, an estimated 4 million Bitcoin has been lost, lying idle in inaccessible wallets. It’s believed that a large portion of that Bitcoin belongs to HODLers who passed away without sharing access to their wallets with anyone. Some even believe that Satoshi Nakamoto’s 1 million Bitcoin hasn’t been touched in years because no one has access to it.
Cryptocurrencies like Bitcoin are designed for self-sovereignty, giving owners full control over their assets. “Not your keys, not your coins,” goes the not-so-old saying. Crypto puts your wealth directly in your hands, without involving an intermediary. The assets are stored on the blockchain, visible to anyone who has your public key.
Your private keys, which are a long string of characters, act like passwords. The individual or entity that controls your private keys controls your crypto. Once lost or forgotten, the private keys can’t be recovered.
To make it easier for users, most wallets have a 12- or 24-word recovery phrase that acts as a human-readable representation of your private key. If
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