As an innovative asset class, cryptocurrencies bring unique opportunities to the table while raising new challenges.
With cryptocurrencies making their way into the lives of a fast-growing number of families and investors, the importance of one’s digital wealth has become more important than ever. But due to the infancy of the blockchain industry, people are still yet to make concrete plans on the distribution of their funds in case of their demise.
Of course, you can always tell your loved ones or friends where to find your keys and passwords, but is that the most efficient and secure way to transfer funds when the actual blockchain exists?
The right wealth management solution will help you to plan ahead for the future of your digital assets. This is especially valuable for cryptocurrencies as they use a unique way to secure your funds.
It’s imperative to have a proper plan in place for unfortunate events because if you don’t, your crypto assets may be lost forever. In fact, a 2017 report from Chainalysis estimates that 2.78-3.79 million bitcoins are lost forever.
According to a more recent report from Glassnode, a blockchain data and intelligence provider, more than 7m bitcoins are either lost or hodled by long-term investors, which is almost 34% of the total supply.
The need for a proper crypto management solution is reflected in users’ sentiment as well, as 89% of cryptocurrency investors are worried about the future of their assets after their passing.
My team and I at DIFX created the Nomination Program, a true blockchain-based asset transference system that allows all users to nominate their family, friends, or virtually anyone to be a beneficiary to their DIFX wallet.
It is a program designed to ensure that in the unlikely event of a user’s demise, their hard-earned digital funds will be transferred to their nominated beneficiaries. Because face it, if we are looking to adopt blockchain and cryptocurrency, why can’t the transfer of these assets also be facilitated through this technology?
The program is quite straightforward: the users can select up to five individuals as their beneficiaries and allocate the desired percentage of funds to each nominee. After that, the nominees have to simply accept the nominator’s request and complete their verification process to become the official beneficiaries.
It is also worth mentioning that the nominees will not be informed about the percentage of the allocated funds. Upon the demise of the user, the nominated individuals will have to follow the set procedure and upload the necessary documentation and await a claim audit.
This process is something that we took great care in creating because we know how detailed and different each country’s laws are regarding the management of estates. Being a centralised exchange with a fully-insured wallet gives our users added trust and confidence to use this program.
Misuse of decentralisation
Although decentralisation is the motto of blockchain, it is often misused and taken advantage of. DeFi, with its ease of use and flexibility, is an excellent way for P2P transactions and activities.
Still, something as substantial as receiving a crypto inheritance through decentralised platforms may raise quite a few red flags. That is why centralised platforms need to plan for their user’s future wealth management.
When it comes to the future of crypto management, we don’t want investors to worry over the uncertainty – a secure option can allow them to plan for the future of their assets.