Crisis is here, and potential pandemic at the hands of the coronavirus is catching many crypto investors off-guard and provoking panic around ever turn.
In the event of the inevitable happening sooner than expected, are crypto investors truly prepared for a worst-case scenario, especially when it comes to providing loved ones access to any potential crypto inheritance? The answer is likely no, however, here are some tips on how can get up to speed in case of catastrophe.
The Entire World Is in Fear and Panic Over the Coronavirus Outbreak
Humans by nature are procrastinators. We know being prepared saves us stress, energy, and money in the long run, but we often wait until the last minute due to being too focused on our social lives, work, or getting some much-needed rest and relaxation.
This lackadaisical behavior is causing the entire world to be caught off guard by an unexpected black swan event: the rapid spread of the deadly coronavirus.
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In a little over two short months since the outbreak was first discovered in Wuhan, China, the coronavirus has spread to most nations, infected over 100,000, and taken the lives of over 4,382 people.
These numbers are climbing by the day, and due to how powerful of a contagion the virus is, a full-scale outbreak is expected.
Events everywhere are being canceled, transportation and travel are hindered and even discouraged, and growth in the economy is slowing as a result.
It’s caused complete panic across the globe, fearing not only an economic meltdown but a pandemic that rivals the plague and countless others that took the lives of millions throughout history.
Possible death is a scenario that everyone should consider in crisis, and prepare for, hence why legal documents like a will exist.
If something bad happened to you and you died, does your spouse, family, whoever you’d want, know how to access your crypto accounts?
Do they know where your 2FA is if needed?
Or is that all going to be lost along with you?
— Josh McGruff (@JoshMcGruff) March 11, 2020
How to Prepare Your Crypto Inheritance In Case of Catastrophe
If you hold a substantial amount of cryptocurrency, including this in a will is the first major step to take. Identifying who you want the funds to go to, and who you want responsible are steps two and three.
Beyond this, because of the intricacies involved with cryptocurrency technology, there are additional steps that are required to access funds that are often beyond what is necessary for traditional assets.
Crypto assets are locked away behind cryptography and can only be accessed via private key. Those with higher levels of protection over their accounts, use additional fail-safes such as two-factor authentication.
Will your loved ones be able to access your crypto when you’re gone? Will they need instructions on how to do so? Unfortunately, regardless of how morbid the subject is, most family members likely need some coaching on how to use the new tech in the event of an emergency situation.
There are many additional challenges, such as bestowing a private key to a loved one and risking having them access your funds before you are actually deceased. But these challenges must be faced.
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Funerals are expensive, and losing the income of a provider can be crippling in addition to the heartache of losing a loved one. Be responsible and plan for a crisis, long before it happens.
For more tips on how to prepare a cryptocurrency inheritance, we recommend the book Cryptoasset Inheritance Planning: A Simple Guide for Owners by Pamela Morgan and a foreword from Bitcoin evangelist Andreas M. Antonopoulos.