Here's one method for incorporating Bitcoin into your legal wills.

 Here’s one method for incorporating Bitcoin into your legal wills.

The rate of adoption in the technology space has skyrocketed. People and institutions are adopting new technologies at a faster rate than the internet. Cryptocurrencies are also included in this category. According to the adoption curve, cryptocurrencies are currently in the Innovators and Early Adopters sections.

Source: Phemex

In 2013 the number of cryptocurrencies stood at 66, however, by 2021 the number of cryptocurrencies stands at 6,044, which is a 9,000% increase. This happened all under a decade.

Here’s another statistic to prove the sheer increase in digital asset adoption, portraying crypto’s increasing utility.

Despite the hype, cryptocurrencies such as Bitcoin have grown in popularity. Bitcoin sceptics argue that due to its high volatility, Bitcoin is neither a medium of exchange nor a store of value. It has no real-world application and is not stable in terms of future purchasing power.

Is Bitcoin no longer a means of exchange?

In a recent interview, Jameson Lopp, a Bitcoin security expert and Casa CTO, added his perspective to the aforementioned scenario. Indeed, he believes Bitcoin has progressed beyond being merely a medium of exchange or a store of value.

 

In the latest interview, Lopp shed light on the usage of Bitcoin as an inheritance and will. Cryptocurrencies – such as Bitcoin – are becoming an increasingly common investment for many people. As a result, we’re starting to see a lot more people longing to include cryptocurrency in their Wills. But there still remains some confusion.

It is important that one specifically list their cryptocurrency in their Will. If not, it will fall into the ‘residue’ of one’s estate. (‘Residue’ is a catchall term for assets that are not specifically listed in your Will.)

Unlike traditional assets like shares or bank account, cryptocurrency does not leave an obvious paper trail. Lopp opined:

“Bitcoin doesn’t know anything about you, your identity, or your beneficiaries. All it knows is whether or not a sufficient number of signatures have been put on a transaction to spend funds from an address.”

Therefore, it boils down to putting the keys in some sort of storage where only specific individuals can access them while alive. A certain subset of beneficiaries (designated) could access and to do this with Multisignature or multisig.

“The reason we like this setup is that you can create say, a three of five multisig setup where you have a key on your phone that is always accessible by you. You then have three different hardware devices that you distribute around and then you have a key that is held offline by Casa.”

Here’s what the prominent Bitcoin enthusiasts recommended during the interview. One should have a key that is accessible by either your state attorney or an executor.

But what if you die….?

Here’s what Lopp said.

“If you die the Casa key the friend or executor key and then the beneficiaries in the safety deposit box can all be accessed through fairly standard processes. And that’s what’s great about distributing all this information around is the level of robustness”

Overall, one might see more utility coming in as time progresses. The prime cryptocurrency could see massive nation-wide adoption. Needless to say, it would following the path of El Salvador.

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