This is an op-ed by finance and technology writer Constantine Rabin.
Many people don’t like to talk about death much, but it’s important to sit and contemplate what will happen to all your earthly possessions when the inevitable finally happens.
Despite its importance, the 2021 study found: Fewer than half of American adults have a will I have everything set up. Many people dread thinking about it, but many simply feel that they don’t have the know-how for establishment or want to wait until they have children to feel the need to organize their afterlife. I think.
Over the past year or so, I have decided to discuss this “will” with myself, and after much thought and hours of research, the answer seems obvious to me as to how best to establish my own will. It seemed It’s Bitcoin.
In today’s world, if you don’t have a will, you’re bound to run into trouble. Suppose tomorrow you kick the bucket without developing an inheritance plan.The first thing that might happen is that all of you Assets may be frozen Until the court takes the time to examine every detail of your property. This alone can take months or years, depending on where you live and the assets in your name. If you were married and died intestate (without a will), your spouse may eventually have to find an executor, which is often costly and Then begins months of paperwork and potentially sudden infighting with long-lost relatives. Show up at your doorstep. To add to all of this drama, there could be a tax office ready to act as a grim reaper for the assets you left behind, often robbing you of a huge percentage of your life savings.
With all this in mind, making a will in BTC can solve many problems for those left behind in this world. I’ll explain some of my thoughts on this and explain exactly why I decided to make my will in Bitcoin.
Advantages of Bitcoin over traditional assets
For me it all boils down to two aspects, one being accessibility. In the case of physical assets, there is more to the process than just paperwork when passing on property after death. Whether it’s gold bars, a bank of investment-grade whiskey, or expensive paintings, moving these items from one place to another and managing them properly requires a certain amount of expertise. .
Bitcoin solves this for me.Here’s an asset that doesn’t need anything else than a combination of 256 bit lengths Your next of kin won’t have to wait months to access your frozen account, it will be accessible worldwide. This combination manages to hold all the value I want to convey without the need for a fancy climate-controlled room or a two-ton safe. In this way, value can be easily transferred to, or accessed by, beneficiaries around the world without the need for intermediaries.
Another aspect of using BTC as a legacy device is the privacy aspect. We all know that Bitcoin’s blockchain technology is as secure as possible, so security risks are eliminated, but what about privacy? Indeed, who does the wallet belong to? Once we know, it may be possible to track down who owns the BTC, but like most of us HODLrs, we tend to keep things secret.
In short, BTC offers security, accessibility, and privacy, but I also realized that there might be some issues with this scheme, so I decided to list them and consider each one.
Bitcoin remittance challenges and risks
Security seems easy in terms of keeping my stash of coins safe for anyone who wants to entrust them, but how do I transfer that coin or pass it around in a secure way to my wallet? Setting up a smart contract that runs on your death seemed like the perfect solution, but then Elon Musk started experimenting on humans with brain implantsSo the idea may still be years away.
So, you go the old-fashioned way: set up a safe deposit box in a regular bank, store your private key in a heavily guarded place, and give instructions to those left behind to clarify the situation. You might consider including it in your book. However, it still requires some degree of technical competence for beneficiaries to navigate the complexities of owning Bitcoin.
Using BTC is now significantly easier than before Dating back to 2010However, it still requires some technical understanding and can be a challenge for heirs who are not familiar with cryptocurrencies. The solution here is obvious. Educate your employees about the glory of Bitcoin before it falls six feet under your feet.
value and distribution
Bitcoin price fluctuation It might even scare people to think of this property as an inheritable store of value, but there is little doubt in my mind that one Satoshi will be worth a good penny one day. there is not.
This problem stems from the fact that I want to continue using cryptocurrency exchanges to trade and increase the bitcoin supply while I am still alive. So how do we split the ever-evolving bitcoin stack evenly after my death? This way you can keep growing your nest egg and the right percentage will end up in the right hands no matter how many coins you hold or how the market fluctuates.
Tools for Bitcoin Succession Planning
Well, in diving down the BTC will rabbit hole, I was able to find some tips and tools that should help you plan what happens to your stuff after you enter eternal rest. rice field. I will briefly mention two of them.
multi signature wallet
This is perfect for those who are worried that one of their relatives will try to trick the rest and such. One of her uses for multi-signature wallets is when attorneys and beneficiaries each require authorization to execute a transaction. This added layer of security makes it an easy way to set your will without experiencing too many technical issues. For me, this multi-signature wallet approach is a great idea and I have already implemented it.
Bitcoin wealth planning service
Believe it or not, I wasn’t the first to think of this. Specialized Bitcoin estate planning services exist, providing solutions to safely manage and transfer your Bitcoin holdings after you die. These services can be very helpful by providing expert guidance and reducing the risk of bitcoin loss or mishandling by those less familiar with blockchain technology. I personally value these services, but it’s not my favourite.
Whatever path you choose to carry out your BTC will, one thing that must always accompany your final will is a comprehensive written document with clear instructions on all your wishes. is. Clear documentation is essential, and the simpler the instructions, the less room for interpretation and debate by the beneficiary.
Impact of Bitcoin as Legacy
To me, it all boils down to building a legacy and playing a role in Bitcoin’s future beyond the grave. The democratization of wealth is a great way to advance the idea of a better world through blockchain technology and BTC, and I feel incorporating it into my will will help me achieve this end. .
I always aim to promote financial inclusion and want to empower my heirs with access to the assets that have already shaped the world into a brighter place and will continue to transform it. I’m here. Supporting Bitcoin in this way aligns with my belief in the potential of decentralized technology to reshape the future of finance and society as a whole.
Choosing Bitcoin as our legacy will at least spark a conversation about digital assets, educate my successors, and inspire them to explore the opportunities presented by emerging technologies so they can confidently evolve. We want to be able to approach the financial situation.
This is a guest post by Konstanin Rabin. The opinions expressed are entirely their own and do not necessarily reflect those of his BTC Inc or Bitcoin Magazine.