What Happens To Your Bitcoin When You Die?

  • December 31, 2020
  • Bitcoin

The good thing about cryptocurrency is its security, as no one else can access it without your permission. In this regard, it is very secure and offers complete privacy. But have you ever wondered what happens to your Bitcoins after your death? The simple answer is that they will continue to exist even after your death as no one else can access it even after your death unless they get your password. Your bitcoins may be lost forever after your death, and you are not the only person dealing with this kind of situation. As per market estimates, close to 15 billion worth of Bitcoins are already lost due to the death of the cryptocurrency holder.

Accessing crypto account

Accessing a crypto account needs a private key, and only the account holder will have the key. This password is usually unchangeable, and it is generated once you create a new wallet. Even though the public key of the wallet is visible to everyone as this is the address you use to send and receive cryptocurrency, the private key contains essential details. You will have to use the private key to know the contents of the wallet. In this regard, even when someone knows that you have a Bitcoin account, they will not come to know how much you have in your account.

Is it possible to pass on Bitcoins to the family after death?

While this looks like a simple process, it is not in practical life as most cryptocurrencies and wallets do not have a system in place to nominate other people for your account. In this regard, it is not legally possible to transfer the holdings to family members after your death. The best thing you can do in this situation is to handover your private key to a trusted family member so that they can access the account after your death. However, this may not be the ideal option for every person.

The other option you can choose is to store the private key safely in your locker at home. You can inform your family members to use the contents after your death as it is not possible to store the private information in your will. In this manner, it is somehow possible to transfer your assets to your family members after your death.

However, most market experts say that such things may not be needed for most people as the bitcoins may not survive beyond a few years. Some experts say that such cryptocurrencies may survive only for the next 5-10 years, and you will have to move to other options in the market.

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