Topic: Crypto Currency Inheritance Flaw (Read 222 times)

Well, I only have a silly idea of writing your private key somewhere else and storing it until you die. A person may organize a system that activates on your death - maybe a lawyer will suddenly appear on your offspring's door post and tell them, "well, there's a thousand of bitcoins left for you, etc etc." But of course, this idea has a lot of loopholes, considering the trustworthiness of the private key keeper and a lot of factors.

Since cryptocurrency is still in its infant stage, there will be a lot of things to consider regarding crypto currency inheritance. These things are:\

1. Lack of security regulation - there's no safety net for a person who loses his access to his wallet. The only string connected between you and your coins is your private key. Once it is compromised, say goodbye to your coins.

2. Fast technological changes. Consider this possibility: Quantum computers vs. Blockchain. Unless developers will fastly develop and upgrade a blockchain that is quantum resistant. When quantum computers win, the coins you leave for inheritance will be compromised.

3. Decentraization - Many people can claim that the crypto currency in a wallet of a deceased person is theirs. Plus, if crypto wants to remain decentralized, the community will resist many regulations the government will apply to it.

4. High volatility - there's no way of telling how much will be the value of a coin 20-50 years from now. Just look at the long list of coins that lost its value overtime. What makes you think bitcoin and ethereum is exempted? I can only imagine the chaos while splitting it to your children.

5. Issue of trust - will you trust your private keys to a specific person? This is an issue that needs to be considered because in cases of sudden death, you will bring the information of your private key to your grave and the inheritance is lost forever.


But I still have faith that this issues will be resolved eventually.

Any professional will writing service should also have adequate understanding of the means required to transfer different types of property to others. With regards to crypto, this would probably include noting the private key to the funds.

What may be perceived as a flaw, may not be so if you go into in depth analysis.
It all comes down to an obvious choice - IYHO which system is preferable - one controlled by any sort of central authority or the one controlled by people themselves.
Tho sole purpose to which governments owe its existence is exercising overreaching authority over individuals in all possible aspects of life among which are even such private things as property and ownership. Governing elites define the rules and decides whether you own something or not collecting their share in the meantime through vehicle known as "tax collection".
On the other hand taking into consideration all possible mistakes that you can make, you and only you control your private key and choose with whom you wish to share it and who should potentially inherit it.
If you do not trust yourself more than you trust existing system you may choose to still consider it as a flaw.

If, and say if since all existing smart contract platforms are centrally controlled and thus vulnerable to potential government meddling in the future, we are to ever have truly decentralized smart contract currency in the future, then any person`s will can be included as an inherent condition of accessing those funds.

There are several projects (safe haven, digipulse) that allow solving the problem with inheritance. But that needs to be done in advance, otherwise everything will be lost.

I think for know getting a divorce and having to split the crypto you own with your wife/housebound it's gonna be rather tricky as you can claim you have nothing, after all, no one knows your wallet address nor there aren't any clear regulations regarding this new type of money.

I always think about this, how in the future the actual number of Bitcoins might be a tiny fractions. People dying taking with them their private key. Or if they did, and they had enough to take care of their kids, an their kid's kids, and so on, eventually one is going to mess em up, lose the key, etc. Different scenarios.

I gather divorce settlements are starting to become a problem in some countries. It's difficult to sort out the split.

Coindesk published a very nice article on this topic.

https://www.coindesk.com/will-become-bitcoins-die/

So, it just went through my mind that there might be a flaw with Cryptos which will slowly make it's mark in the years to come. I am talking about inheritance.
Unlike regular money, which have a centralized source, cryptos are harder to inherit, since, if the original owner of the private key didn't give it to you before he passed away, then you can say good bye to those money.
Leaving aside the people that simply forgot their private keys and that sent coins to wrong addresses which have no user behind.

In 50-100 years this might be a big issues, making the actual amount of usable Bitcoin (or other coins) much lower than it should be.
What do you think?