Here's Why That's Good for BitcoinĪt the moment, there is no official way to name a legal beneficiary for your crypto funds, and it could be difficult for your relatives or trusted persons to find out if you even own crypto, given that the entire point of this currency is decentralization and anonymity. Therefore, it's important to fully educate yourself on the elements surrounding your crypto funds in the event of your death and ensure you make the right decision. Your trusted person could decide to take your seed phrase and use it to steal your funds while you're alive or could go against your wishes after you die. However, there are risks associated with this. Doing so will ensure that this person will be able to access your funds and do what you have stipulated with them when you are no longer around to do so. One option for securing the passing on of your crypto assets is to give your crypto wallet seed phrase to a very trusted individual in your life (ideally the one you want the crypto to go to). While a decent amount of crypto out there is now lost forever (be it due to death or loss of seed phrases), this doesn't have to be how things go.
But, does this have to be the case? Will your crypto assets end up lost in the decentralized realm after you pass away? That's an awful lot of Bitcoin to miss out on. It is still not known where these funds will go, if anywhere. Well, Popescu happened to be a pretty controversial crypto billionaire, with around $2 billion worth of Bitcoin in his possession. Popescu's death launched a huge discussion into what should be done with cryptocurrency when its owner dies. In June 2021, a 41-year-old Romanian man named Mircea Popescu tragically drowned at a beach off the coast of Costa Rica. This has happened before and has caused the potential loss of billions of dollars worth of Bitcoin. Related: The Best Ways to Store Your Crypto Seed Phrases Securely Without this phrase, no one can access your crypto if you're no longer around.
Of course, crypto hacks do happen, but your seed phrase stands as a pretty significant security measure against unwelcome parties getting to your funds. Nobody can officially or legally access your cryptocurrency funds without this seed phrase. The main element to consider here is your seed phrase. Alternatively, the funds will go directly to the state if there is no will and no surviving family (which happens a lot more often than you'd think). When you die, you can either leave it to a person, people, or organization in a will or have it automatically split between your surviving spouse or close family if the will is absent.
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