Crypto payment platform BitPay has started accepting settlements in stablecoins GUSD and USDC
from Cointelegraph.com News https://ift.tt/2Abd13c Crypto Payment Platform BitPay Introduces Settlement in Stablecoins
Category Archives: Blockchain News
#Blockchain Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, TRON: Price Analysis, October 15
Will cryptocurrencies hold on to higher prices or give up recent gains in the next few days? Let’s watch the critical levels that will indicate a trend change
from Cointelegraph.com News https://ift.tt/2pVXNcu Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, TRON: Price Analysis, October 15
#Blockchain Zambia Launches Crackdown on Crypto Companies
The Bank of Zambia has started to clamp down on cryptocurrency-related businesses, mere days after declaring that it does not view digital coins such as BTC as legal tender. The crackdown began on Oct. 14, when the central bank announced an investigation into Heritagecoin Resources Ltd. for allegedly laundering money, according to local media reports.
Also read: Zambian Central Bank Declares Bitcoin is Not Legal Tender
Bank of Zambia Probes
Heritagecoin’s Deposits Business
In addition to the ongoing probe, the Lusaka-based fintech startup faces allegations that it has taken on traditional banking activities, such as accepting deposits — something it is not certified to do.
“The company … has since been offering financial services and collecting deposits from members of the public,” Kamufinsa Manchishi, a spokesperson for the Zambian Drug Enforcement Commission, told the Lusaka Times. The organization, which is assisting with the investigation into Heritagecoin, did not reveal the amount of money involved.
Manchishi added that: “As such, the commission together with the Bank of Zambia (BoZ) are currently investigating the company for activities contrary to the Prohibition and Prevention of Money Laundering, as well as the Banking and Financial Services Acts.”
On Friday, the BoZ declared that cryptocurrencies such as BTC are not legal tender, warning that those conducting transactions in the cryptocurrency would have nobody to turn to or blame in the event of market failure. However, it appears that the bank issued the decree solely because it wants to promote its depreciating fiat currency, the kwacha.
That said, the central bank has neither the power nor the legal backing to shut down the nascent Zambian cryptocurrency market. The BoZ would need parliament to amend the law that enabled its own establishment for it to be able to claim any authority over cryptocurrency investments or trading.
Nonetheless, the BoZ does have full control of the banking sector within which Heritagecoin Resources operates. Founded in June 2018, the company describes itself as a “digital currency financing and real estate development” company that also offers “other financial advisory services.” It does not look appear that the firm is operating as an exchange, although it does accept deposits.
Suspicious Startup
Some of the promises made by the startup do look suspicious, as many of them are expressed in bombastic, pyramid-style jargon. “The concept is very simple; our partners are entitled to daily earning (sic) of 1.6 percent guaranteeing a payout of 38 percent after service charge. Maturity period is 25 working days,” the company says on its website. Promoters of Ponzi schemes often make similar claims, such as promising unusually high returns on deposits — often, those promises are too good to be true.
“Despite the name, they (Heritagecoin) don’t actually have a coin or token. It’s just a name. They are not an exchange,” Dominic Kapalu, a Zambian author and cryptocurrency proponent, told news.Bitcoin.com. “They collect funds from people which they trade in altcoins and bitcoin. I am not sure if they do mine as well. From the returns they get from the business, they share the profits with the investors.”
Kapalu claimed that the BoZ probe is not specifically focused on the cryptocurrency side of Heritagecoin’s business, even though its crypto unit was at risk of collapse if it didn’t take deposits. “The company is being investigated not because they deal in cryptocurrency,” Kapalu said via email.
“The investigation is to do with a product they have which requires members of the public to deposit money with the company and pay them interest after 28 days. (BoZ) rules state that any deposit-taking institution in Zambia needs to be licensed to prevent companies from defrauding citizens.”
Proceed With Caution, Authorities Warn
Manchishi, the Zambian Drug Enforcement Commission spokesperson, warned investors to remain wary of companies that promise extraordinarily high returns on short-term deposits. On Oct. 12, the BoZ also issued a statement warning individuals that use or trade cryptocurrencies that they were doing so at their own risk. The central bank said that such people would not have any regulatory recourse in the event of theft or fraud.
Additionally, the BoZ claimed that although bitcoin and other cryptocurrencies retained “some monetary characteristics, such as, being used as a means of payment on a person-to-person basis, cryptocurrencies are not legal tender in Zambia.”
On its charge sheet, the Zambian financial regulator claimed that virtual currencies are raising the risk of “money laundering” while “financing activities of terrorism” and driving up “general consumer protection risks such as fraud and hacking.”
In May, the central bank in neighboring Zimbabwe used its authority over commercial banks to shut down cryptocurrency markets.
What do you think about the Bank of Zambia’s stance on cryptocurrency? Let us know in the comments section below.
Images courtesy of Shutterstock.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com
The post Zambia Launches Crackdown on Crypto Companies appeared first on Bitcoin News.
from Bitcoin News https://ift.tt/2Cigka0 Zambia Launches Crackdown on Crypto Companies
#Blockchain Bitcoin After Death: The Perils of Sharing One’s Fortune
If you are a young fortune-hunter toiling away on a computer in a basement, the prospect of death probably isn’t among your top considerations. Equally, if the main draw to crypto is its relative privacy, you may not be particularly eager to share your private keys with your loved ones, as a hacker could sift through your papers, weaponize your keys and empty your savings.
Also read: Death & Bitcoin: How I Prepared My Family’s Digital Inheritance
Prepare for the Inevitable
Most privacy-obsessed, wealth-chasing geeks are used to keeping their private keys a total secret. But when the Grim Reaper shows up unannounced, the family of an anonymous crypto-millionaire can be left without access to their relative’s riches. In one of the most widely publicized recent examples, paranoid U.S. investor Matthew Mellon died earlier this year, leaving few clues to a crypto fortune reportedly valued at more than $500 million.
In South Africa, for instance, thousands of people have invested in cryptocurrencies. However, once they pass away, many of those individuals will die with their holdings.
“As a young industry, with little regulation, it is crucial for investors to become more responsible in their attitude towards cryptocurrency investing,” Eran Brill, an investment management director at Stonehage Fleming in South Africa, recently told one news site. “Investors need a storage execution strategy for account information, as well as advice on the implications regarding the deceased estate, including access to accounts, distribution to beneficiaries, and tax implications.”
The ‘Double Funeral’ Dilemma
There have already been several examples around the world of bitcoin investors who have died without leaving their keys for their relatives. In such cases, families must deal with a kind of “double funeral,” as they mourn the loss of their loved ones while coming to terms with the loss of an irretrievable fortune that might have been theirs.
This underscores how bitcoin’s main attraction — its safe remove from regulators and impenetrable privacy from regulation — can also become its fatal weakness. Users may enjoy immunity from high bank fees and taxes, but they miss out on the good side of the old system, such as help with the administration of their estates.
According to Chainalysis, about 25 percent of all bitcoins now in circulation (valued at roughly $23.5 billion) have already been lost forever. Death likely accounts for a good portion of these losses. But the recent example of Mellon, in particular, may encourage investors to start thinking beyond their own lives.
Mellon died in April at the age of 54. He passed away with up to $500 million in ripple stashed away in cold storage under fake names in banks across the U.S. But the secretive millionaire took his fortune with him, because he failed to name heirs to his wealth and did not provide information on how to access his crypto wallets.
Posthumous losses of cryptocurrency will likely become more of a problem in the years to come, as investors will remain inclined to value secrecy to safeguard their wallets. While death is a concern, bitcoin wealth can also be lost through theft, accidental deletion, security breaches, and the loss of passwords and hard drives. This explains, in part, why cryptocurrency investors are secretive about their details.
Mixed Blessing
Legislators in South Africa, the second-largest crypto market on the African continent after Nigeria, are still wrapping their heads around bitcoin regulation, nine years after the introduction of the virtual currency. But regulation could prove to be a mixed blessing for account holders. On the negative side, the South African tax regulator now recognizes cryptocurrency as an “asset of intangible nature.” But on the positive side, the introduction of new rules could mean that players operating in this decentralized space will be able to claim greater protection if the need arises.
South Africa’s formal recognition of bitcoin means its laws of succession apply to cryptocurrencies, as with other investments in the estates of deceased individuals. However, it is still up to investors themselves to formally identify their heirs in their wills.
That said, having a will does not automatically mean that one’s bitcoin wealth will get passed down to loved ones. Private keys are still needed to unlock crypto wallets, which is why individuals need to leave clear instructions on how their heirs can access their fortunes.
Inheritable digital safe services such as Digipulse help people to keep their bitcoin information safe, while allowing it to be utilized for legacy purposes. Simpler methods might include entrusting third parties with copies of private keys, either on paper or in digital format, but such options necessitate a level of trust.
What do you think about the relationship between cryptocurrency, privacy and death? Let us know in the comments section below.
Images courtesy of Shutterstock.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.
The post Bitcoin After Death: The Perils of Sharing One’s Fortune appeared first on Bitcoin News.
from Bitcoin News https://ift.tt/2NH50q7 Bitcoin After Death: The Perils of Sharing One’s Fortune
#Blockchain Bitcoin After Death: The Perils of Sharing One’s Fortune
If you are a young fortune-hunter toiling away on a computer in a basement, the prospect of death probably isn’t among your top considerations. Equally, if the main draw to crypto is its relative privacy, you may not be particularly eager to share your private keys with your loved ones, as a hacker could sift through your papers, weaponize your keys and empty your savings.
Also read: Death & Bitcoin: How I Prepared My Family’s Digital Inheritance
Prepare for the Inevitable
Most privacy-obsessed, wealth-chasing geeks are used to keeping their private keys a total secret. But when the Grim Reaper shows up unannounced, the family of an anonymous crypto-millionaire can be left without access to their relative’s riches. In one of the most widely publicized recent examples, paranoid U.S. investor Matthew Mellon died earlier this year, leaving few clues to a crypto fortune reportedly valued at more than $500 million.
In South Africa, for instance, thousands of people have invested in cryptocurrencies. However, once they pass away, many of those individuals will die with their holdings.
“As a young industry, with little regulation, it is crucial for investors to become more responsible in their attitude towards cryptocurrency investing,” Eran Brill, an investment management director at Stonehage Fleming in South Africa, recently told one news site. “Investors need a storage execution strategy for account information, as well as advice on the implications regarding the deceased estate, including access to accounts, distribution to beneficiaries, and tax implications.”
The ‘Double Funeral’ Dilemma
There have already been several examples around the world of bitcoin investors who have died without leaving their keys for their relatives. In such cases, families must deal with a kind of “double funeral,” as they mourn the loss of their loved ones while coming to terms with the loss of an irretrievable fortune that might have been theirs.
This underscores how bitcoin’s main attraction — its safe remove from regulators and impenetrable privacy from regulation — can also become its fatal weakness. Users may enjoy immunity from high bank fees and taxes, but they miss out on the good side of the old system, such as help with the administration of their estates.
According to Chainalysis, about 25 percent of all bitcoins now in circulation (valued at roughly $23.5 billion) have already been lost forever. Death likely accounts for a good portion of these losses. But the recent example of Mellon, in particular, may encourage investors to start thinking beyond their own lives.
Mellon died in April at the age of 54. He passed away with up to $500 million in ripple stashed away in cold storage under fake names in banks across the U.S. But the secretive millionaire took his fortune with him, because he failed to name heirs to his wealth and did not provide information on how to access his crypto wallets.
Posthumous losses of cryptocurrency will likely become more of a problem in the years to come, as investors will remain inclined to value secrecy to safeguard their wallets. While death is a concern, bitcoin wealth can also be lost through theft, accidental deletion, security breaches, and the loss of passwords and hard drives. This explains, in part, why cryptocurrency investors are secretive about their details.
Mixed Blessing
Legislators in South Africa, the second-largest crypto market on the African continent after Nigeria, are still wrapping their heads around bitcoin regulation, nine years after the introduction of the virtual currency. But regulation could prove to be a mixed blessing for account holders. On the negative side, the South African tax regulator now recognizes cryptocurrency as an “asset of intangible nature.” But on the positive side, the introduction of new rules could mean that players operating in this decentralized space will be able to claim greater protection if the need arises.
South Africa’s formal recognition of bitcoin means its laws of succession apply to cryptocurrencies, as with other investments in the estates of deceased individuals. However, it is still up to investors themselves to formally identify their heirs in their wills.
That said, having a will does not automatically mean that one’s bitcoin wealth will get passed down to loved ones. Private keys are still needed to unlock crypto wallets, which is why individuals need to leave clear instructions on how their heirs can access their fortunes.
Inheritable digital safe services such as Digipulse help people to keep their bitcoin information safe, while allowing it to be utilized for legacy purposes. Simpler methods might include entrusting third parties with copies of private keys, either on paper or in digital format, but such options necessitate a level of trust.
What do you think about the relationship between cryptocurrency, privacy and death? Let us know in the comments section below.
Images courtesy of Shutterstock.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.
The post Bitcoin After Death: The Perils of Sharing One’s Fortune appeared first on Bitcoin News.
from Bitcoin News https://ift.tt/2NH50q7 Bitcoin After Death: The Perils of Sharing One’s Fortune
#Blockchain Bitcoin After Death: The Perils of Sharing One’s Fortune
If you are a young fortune-hunter toiling away on a computer in a basement, the prospect of death probably isn’t among your top considerations. Equally, if the main draw to crypto is its relative privacy, you may not be particularly eager to share your private keys with your loved ones, as a hacker could sift through your papers, weaponize your keys and empty your savings.
Also read: Death & Bitcoin: How I Prepared My Family’s Digital Inheritance
Prepare for the Inevitable
Most privacy-obsessed, wealth-chasing geeks are used to keeping their private keys a total secret. But when the Grim Reaper shows up unannounced, the family of an anonymous crypto-millionaire can be left without access to their relative’s riches. In one of the most widely publicized recent examples, paranoid U.S. investor Matthew Mellon died earlier this year, leaving few clues to a crypto fortune reportedly valued at more than $500 million.
In South Africa, for instance, thousands of people have invested in cryptocurrencies. However, once they pass away, many of those individuals will die with their holdings.
“As a young industry, with little regulation, it is crucial for investors to become more responsible in their attitude towards cryptocurrency investing,” Eran Brill, an investment management director at Stonehage Fleming in South Africa, recently told one news site. “Investors need a storage execution strategy for account information, as well as advice on the implications regarding the deceased estate, including access to accounts, distribution to beneficiaries, and tax implications.”
The ‘Double Funeral’ Dilemma
There have already been several examples around the world of bitcoin investors who have died without leaving their keys for their relatives. In such cases, families must deal with a kind of “double funeral,” as they mourn the loss of their loved ones while coming to terms with the loss of an irretrievable fortune that might have been theirs.
This underscores how bitcoin’s main attraction — its safe remove from regulators and impenetrable privacy from regulation — can also become its fatal weakness. Users may enjoy immunity from high bank fees and taxes, but they miss out on the good side of the old system, such as help with the administration of their estates.
According to Chainalysis, about 25 percent of all bitcoins now in circulation (valued at roughly $23.5 billion) have already been lost forever. Death likely accounts for a good portion of these losses. But the recent example of Mellon, in particular, may encourage investors to start thinking beyond their own lives.
Mellon died in April at the age of 54. He passed away with up to $500 million in ripple stashed away in cold storage under fake names in banks across the U.S. But the secretive millionaire took his fortune with him, because he failed to name heirs to his wealth and did not provide information on how to access his crypto wallets.
Posthumous losses of cryptocurrency will likely become more of a problem in the years to come, as investors will remain inclined to value secrecy to safeguard their wallets. While death is a concern, bitcoin wealth can also be lost through theft, accidental deletion, security breaches, and the loss of passwords and hard drives. This explains, in part, why cryptocurrency investors are secretive about their details.
Mixed Blessing
Legislators in South Africa, the second-largest crypto market on the African continent after Nigeria, are still wrapping their heads around bitcoin regulation, nine years after the introduction of the virtual currency. But regulation could prove to be a mixed blessing for account holders. On the negative side, the South African tax regulator now recognizes cryptocurrency as an “asset of intangible nature.” But on the positive side, the introduction of new rules could mean that players operating in this decentralized space will be able to claim greater protection if the need arises.
South Africa’s formal recognition of bitcoin means its laws of succession apply to cryptocurrencies, as with other investments in the estates of deceased individuals. However, it is still up to investors themselves to formally identify their heirs in their wills.
That said, having a will does not automatically mean that one’s bitcoin wealth will get passed down to loved ones. Private keys are still needed to unlock crypto wallets, which is why individuals need to leave clear instructions on how their heirs can access their fortunes.
Inheritable digital safe services such as Digipulse help people to keep their bitcoin information safe, while allowing it to be utilized for legacy purposes. Simpler methods might include entrusting third parties with copies of private keys, either on paper or in digital format, but such options necessitate a level of trust.
What do you think about the relationship between cryptocurrency, privacy and death? Let us know in the comments section below.
Images courtesy of Shutterstock.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.
The post Bitcoin After Death: The Perils of Sharing One’s Fortune appeared first on Bitcoin News.
from Bitcoin News https://ift.tt/2NH50q7 Bitcoin After Death: The Perils of Sharing One’s Fortune
#Blockchain Bitcoin After Death: The Perils of Sharing One’s Fortune
If you are a young fortune-hunter toiling away on a computer in a basement, the prospect of death probably isn’t among your top considerations. Equally, if the main draw to crypto is its relative privacy, you may not be particularly eager to share your private keys with your loved ones, as a hacker could sift through your papers, weaponize your keys and empty your savings.
Also read: Death & Bitcoin: How I Prepared My Family’s Digital Inheritance
Prepare for the Inevitable
Most privacy-obsessed, wealth-chasing geeks are used to keeping their private keys a total secret. But when the Grim Reaper shows up unannounced, the family of an anonymous crypto-millionaire can be left without access to their relative’s riches. In one of the most widely publicized recent examples, paranoid U.S. investor Matthew Mellon died earlier this year, leaving few clues to a crypto fortune reportedly valued at more than $500 million.
In South Africa, for instance, thousands of people have invested in cryptocurrencies. However, once they pass away, many of those individuals will die with their holdings.
“As a young industry, with little regulation, it is crucial for investors to become more responsible in their attitude towards cryptocurrency investing,” Eran Brill, an investment management director at Stonehage Fleming in South Africa, recently told one news site. “Investors need a storage execution strategy for account information, as well as advice on the implications regarding the deceased estate, including access to accounts, distribution to beneficiaries, and tax implications.”
The ‘Double Funeral’ Dilemma
There have already been several examples around the world of bitcoin investors who have died without leaving their keys for their relatives. In such cases, families must deal with a kind of “double funeral,” as they mourn the loss of their loved ones while coming to terms with the loss of an irretrievable fortune that might have been theirs.
This underscores how bitcoin’s main attraction — its safe remove from regulators and impenetrable privacy from regulation — can also become its fatal weakness. Users may enjoy immunity from high bank fees and taxes, but they miss out on the good side of the old system, such as help with the administration of their estates.
According to Chainalysis, about 25 percent of all bitcoins now in circulation (valued at roughly $23.5 billion) have already been lost forever. Death likely accounts for a good portion of these losses. But the recent example of Mellon, in particular, may encourage investors to start thinking beyond their own lives.
Mellon died in April at the age of 54. He passed away with up to $500 million in ripple stashed away in cold storage under fake names in banks across the U.S. But the secretive millionaire took his fortune with him, because he failed to name heirs to his wealth and did not provide information on how to access his crypto wallets.
Posthumous losses of cryptocurrency will likely become more of a problem in the years to come, as investors will remain inclined to value secrecy to safeguard their wallets. While death is a concern, bitcoin wealth can also be lost through theft, accidental deletion, security breaches, and the loss of passwords and hard drives. This explains, in part, why cryptocurrency investors are secretive about their details.
Mixed Blessing
Legislators in South Africa, the second-largest crypto market on the African continent after Nigeria, are still wrapping their heads around bitcoin regulation, nine years after the introduction of the virtual currency. But regulation could prove to be a mixed blessing for account holders. On the negative side, the South African tax regulator now recognizes cryptocurrency as an “asset of intangible nature.” But on the positive side, the introduction of new rules could mean that players operating in this decentralized space will be able to claim greater protection if the need arises.
South Africa’s formal recognition of bitcoin means its laws of succession apply to cryptocurrencies, as with other investments in the estates of deceased individuals. However, it is still up to investors themselves to formally identify their heirs in their wills.
That said, having a will does not automatically mean that one’s bitcoin wealth will get passed down to loved ones. Private keys are still needed to unlock crypto wallets, which is why individuals need to leave clear instructions on how their heirs can access their fortunes.
Inheritable digital safe services such as Digipulse help people to keep their bitcoin information safe, while allowing it to be utilized for legacy purposes. Simpler methods might include entrusting third parties with copies of private keys, either on paper or in digital format, but such options necessitate a level of trust.
What do you think about the relationship between cryptocurrency, privacy and death? Let us know in the comments section below.
Images courtesy of Shutterstock.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.
The post Bitcoin After Death: The Perils of Sharing One’s Fortune appeared first on Bitcoin News.
from Bitcoin News https://ift.tt/2NH50q7 Bitcoin After Death: The Perils of Sharing One’s Fortune
#Blockchain Major Korean Financial Holding Company Wins Blockchain Patent for Improved Fintech Security
Major South Korean financial holding company KB Financial Group has sealed a patent for a blockchain-based fintech app security solution
from Cointelegraph.com News https://ift.tt/2QSzt6r Major Korean Financial Holding Company Wins Blockchain Patent for Improved Fintech Security
#Blockchain Third Top Cryptocurrency Exchange OKEx Lists Four Stablecoins at Once
OKEx has announced listings for four stablecoins: TrueUSD, USD Coin, Gemini Dollar, and Paxos Standard Token
from Cointelegraph.com News https://ift.tt/2CfPmQm Third Top Cryptocurrency Exchange OKEx Lists Four Stablecoins at Once
#Blockchain Bitcoin After Death: The Perils of Sharing One’s Fortune
If you are a young fortune-hunter toiling away on a computer in a basement, the prospect of death probably isn’t among your top considerations. Equally, if the main draw to crypto is its relative privacy, you may not be particularly eager to share your private keys with your loved ones, as a hacker could sift through your papers, weaponize your keys and empty your savings.
Also read: Death & Bitcoin: How I Prepared My Family’s Digital Inheritance
Prepare for the Inevitable
Most privacy-obsessed, wealth-chasing geeks are used to keeping their private keys a total secret. But when the Grim Reaper shows up unannounced, the family of an anonymous crypto-millionaire can be left without access to their relative’s riches. In one of the most widely publicized recent examples, paranoid U.S. investor Matthew Mellon died earlier this year, leaving few clues to a crypto fortune reportedly valued at more than $500 million.
In South Africa, for instance, thousands of people have invested in cryptocurrencies. However, once they pass away, many of those individuals will die with their holdings.
“As a young industry, with little regulation, it is crucial for investors to become more responsible in their attitude towards cryptocurrency investing,” Eran Brill, an investment management director at Stonehage Fleming in South Africa, recently told one news site. “Investors need a storage execution strategy for account information, as well as advice on the implications regarding the deceased estate, including access to accounts, distribution to beneficiaries, and tax implications.”
The ‘Double Funeral’ Dilemma
There have already been several examples around the world of bitcoin investors who have died without leaving their keys for their relatives. In such cases, families must deal with a kind of “double funeral,” as they mourn the loss of their loved ones while coming to terms with the loss of an irretrievable fortune that might have been theirs.
This underscores how bitcoin’s main attraction — its safe remove from regulators and impenetrable privacy from regulation — can also become its fatal weakness. Users may enjoy immunity from high bank fees and taxes, but they miss out on the good side of the old system, such as help with the administration of their estates.
According to Chainalysis, about 25 percent of all bitcoins now in circulation (valued at roughly $23.5 billion) have already been lost forever. Death likely accounts for a good portion of these losses. But the recent example of Mellon, in particular, may encourage investors to start thinking beyond their own lives.
Mellon died in April at the age of 54. He passed away with up to $500 million in ripple stashed away in cold storage under fake names in banks across the U.S. But the secretive millionaire took his fortune with him, because he failed to name heirs to his wealth and did not provide information on how to access his crypto wallets.
Posthumous losses of cryptocurrency will likely become more of a problem in the years to come, as investors will remain inclined to value secrecy to safeguard their wallets. While death is a concern, bitcoin wealth can also be lost through theft, accidental deletion, security breaches, and the loss of passwords and hard drives. This explains, in part, why cryptocurrency investors are secretive about their details.
Mixed Blessing
Legislators in South Africa, the second-largest crypto market on the African continent after Nigeria, are still wrapping their heads around bitcoin regulation, nine years after the introduction of the virtual currency. But regulation could prove to be a mixed blessing for account holders. On the negative side, the South African tax regulator now recognizes cryptocurrency as an “asset of intangible nature.” But on the positive side, the introduction of new rules could mean that players operating in this decentralized space will be able to claim greater protection if the need arises.
South Africa’s formal recognition of bitcoin means its laws of succession apply to cryptocurrencies, as with other investments in the estates of deceased individuals. However, it is still up to investors themselves to formally identify their heirs in their wills.
That said, having a will does not automatically mean that one’s bitcoin wealth will get passed down to loved ones. Private keys are still needed to unlock crypto wallets, which is why individuals need to leave clear instructions on how their heirs can access their fortunes.
Inheritable digital safe services such as Digipulse help people to keep their bitcoin information safe, while allowing it to be utilized for legacy purposes. Simpler methods might include entrusting third parties with copies of private keys, either on paper or in digital format, but such options necessitate a level of trust.
What do you think about the relationship between cryptocurrency, privacy and death? Let us know in the comments section below.
Images courtesy of Shutterstock.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.
The post Bitcoin After Death: The Perils of Sharing One’s Fortune appeared first on Bitcoin News.
from Bitcoin News https://ift.tt/2NH50q7 Bitcoin After Death: The Perils of Sharing One’s Fortune