…… I don’t know what will happen to those Bitcoins if I am run over by a bus.
This is one of the major concerns many Bitcoin or virtual currency holders have especially after hearing stories such as that of Mr James Howell, who lost £4m worth of Bitcoins when he accidently threw the hard drive with bitcoins in the rubbish. You can find the details of the story here.
So for those who don’t know what is Bitcoin?
Bitcoin is virtual currency that is generated from a computer based network of individuals that manages Bitcoin balances and transactions. They’re “mined” from computer networks through the process of solving a complex mathematical problem. You can find more details about Bitcoin and its usage in this video.
Bitcoins have a big financial value associated with them, they form an important part of your estate. As these are virtual currencies they are stored in electronic wallets which are guarded by private key.You cannot simply write this key on a paper and/or add it to your will.
There are different ways to ensure that Bitcoins are transferred to your beneficiaries and this blog explains many of them.
However, one of the simplest methods is breaking the private key into different parts, store it an electronic vault (such as PlannedDeparture) and assign it to different beneficiaries. In case of emergency or death (after obtaining legal proof), these keys will be released to the beneficiaries. The different parts can then be combined and Bitcoins can be claimed or recovered.
In case you are wondering why can’t we combine these keys and claim?
Well, we won’t and we can’t because all the information that is stored in our vault is in the encrypted using the highest level encryption (the one used by banks and US Govt.). You can learn more about our security here and learn more about how we encrypt your data here.
So what are you waiting for? Why not create your account today?