How Will Crypto Testaments Look Like?
Bitcoin put its mark on this world for 14 years (since the whitepaper was made public), and our chain with its legacy is closing in on 8 years, so those years started to pile up.
Early bitcoiners, if they started in their 20ies, are now middle age. Time passes for everyone.
Not everyone starts young either. I don't want to sound morbid, but passing away is a thing for us humans, and a good thing, given our degrading bodies and minds. It would be a good thing even if the body and mind were kept in perfect condition because mentalities change over time and there will often be a gap between younger and older people, bigger with the age difference (usually). That's why attempting to extend life artificially is probably a bad thing for mankind because it will lead to stronger generational conflicts.
So, what happens with our crypto when we pass away or if we become incapacitated? There are no laws to cover the transmission of these assets to legal heirs and it would be a nightmare to create or apply them. Which is as it should be!
With assets in ETFs (when they'll be approved) or even centralized exchanges, probably transmission to the legal heirs would be possible if they provided the necessary legal documents.
But for self-custody wallets, that doesn't apply. In this case, the owner needs to take the necessary steps to instruct someone else in the family (or whoever is the beneficiary) on how to access the wallets. What will we do in the case of non-technical people? How do you explain to them the usage of different wallets, different blockchains, different platforms, and different products, so that they can follow what we are saying and don't simply give up on the potential wealth that is amassed behind those steps?
We often start from the premise that "we have time" to explain everything in person (including myself for a long time). But what if we don't? Sometimes our time just ends and there's nothing we can do to extend it.
I wonder how many crypto-related jobs will be created based on the need to find, understand, and move assets, alone. There is a matter of trust though. If you don't understand what is in the self-custody wallets, and how to work with them, can you trust someone else to do what is necessary for you without keeping some for themselves?
The best solution would be mass adoption and people understanding crypto like they understand how to use a smartphone. But it looks to me like the mass adoption will come via Wall Street, banks, or Web 2 ways, and none of them means truly crypto involvement for the user/investor. But it will likely be much easier to transmit assets to heirs.
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Right, without mass adoption, I think it will be very hard to transfer our crypto assets to our heirs when the need arises. Technical challenges will probably be the biggest barrier because crypto is fairly complex to the average person. Crypto asset management might be a booming sector when that happens as few will prefer self-custody and management.
Yes, that's why banks and Wall Street firms, which both understand the power of a small fee in the long term, are fighting to position themselves in this domain.
It might not take that long for it to happen if crypto spot ETFs start getting approved and there are more clear regulations about the space.
With the massive adoption happening in the Crypto space, I am so sure that the future is really bright and more initiative we turn up soon also
You are very positive regarding crypto adoption. :)
Well, I believe that a lot of people are already understanding crypto these days. It may be a little percentage of the people in the world but we’re getting there
Cryptocurrency will be global very soon
Depends on what they'll understand by crypto. If what they understand is holding coins in CEXes and trading them there, or investing via the future ETFs, that doesn't give them much insight into crypto.
yes time passes very fast.
Hmm... really a food for thought moment. Let's hope for stronger adoption of Crypto.
Yeah... Adoption would be the best outcome if it happens in crypto and not in proxies.
https://twitter.com/jewellery_all/status/1736101179531108547
This is a slightly dark, but very realistic topic you have here. I have seen it discussed in SPL mav chat at one point, and some recommended giving it to someone you trusted, but that is still very risky. I did think about it at some point, and the best method I came up with was divide the wallet phrases into a minimum of two sets. One set you give to your heirs, and make them keep it safe and not to lose it. The other set with a custodian, or a lawyer, someone who usually does inheritances. Make a letter or a video explaining to the heirs how to use the phrase and wallet, and leave it with the custodian as well. When the person dies, the heirs should be able to get the assets safely.
That makes perfect sense assuming you know where you'll have your assets when you pass away and that the respective wallets have wallet phrases. What would you do with a Hive wallet? Divide the owner key into multiple parts? But I like your idea, even though it's a bit too formal for what I had in mind initially. But later on, it may be the more suitable approach.
Yep. Just divide any security feature into two so one side can't mess with your assets while you're still alive. If you want to change the recipients, you can change the keys, and give them the updated ones.
I think it would be tough for testaments without actual code being made for it. As it stands, not your keys, not your crypto. It will definitely get weird as time passes and crypto starts evolving more.
I like "not your code, not your crypto". We just need to educate our heirs in time or leave them instructions, although this may be harder on them.
As such people who understood this technology in the beginning have benefited a lot and if we talk about it the price may come down now if it goes below 39500.