There was a situation in the United States where a family found out that the deceased member of the family had a bitcoin wallet that has substantial amount stored in it, but had no way of accessing that money. SInce it is pretty obvious that digital currencies are here to stay, it’s normal to ask ourselves what will happen to that money after we or someone close to us dies?
Seeing that Bitcoins along with all the other cryptocurrencies are protected by cryptography which is extremely secure, this simultaneously makes things difficult for the family in case of a death of the wallet owner. Not being able to access the funds in the wallet will prove to be frustrating, to say the least.
Everyone who has cryptocurrency will be storing them in a virtual wallet that has an address, that is – a public key. The public key is a visible key that anyone who wants to send you money can see. On the other hand, a private key is only your own and it is used to access the contents of the wallet.
Since the owner of the address should make sure they don’t share the private key with anyone, it can prove to be a hassle to access the funds later on. However, this can be prevented by simply making a copy of the key and entrusting it to someone like a commercial service that deals in exactly those types of situations.
Why would someone choose a commercial business to store their key instead of simply giving it to a friend or a family member? Because people tend to sometimes not realize that a string of letters and numbers is actually a wallet key and they throw it away.
In any case, there will obviously be many situations in the future where either new laws will need to be made regarding the inheritance of digital currency, or at least the existing laws are going to need to be amended.