Death is the biggest buyer of encrypted money

Original title:The Biggest Buyer Of Crypto Is Death

Original by: @PixOnChain, EncryptedKOL

This post is part of our special coverage Syria Protests 2011

 

People in encrypted currency always say, "Not your key, not your currency." That sounds powerful and true. But there's a mirror logic behind this: "You can only have your encrypted currency if you have your key."。

If no one else knew how to access your wallet, your encrypted currency would be "no longer" when you stopped breathing. Of course, it is not literally disappearing — it still exists in block chains, but it is no different from being burned at the economic level。

So what's the scale of the Death Buyer

Today, most encrypted currency holders are young, most of them between the ages of 28 and 39。

There are few holders beyond retirement age, which makes it easy to ignore the issue of "death leads to the loss of encrypted currency". However, even so, the data are alarming:

• About 60 million deaths per year globally (based on a global population of about 8 billion)

• Global encryption currency holders of about 500 million people (equivalent to 1 out of 16 holding encrypted money)

• The conservatively estimated annual mortality rate of about 0.2 per cent, due to the fact that encrypted currency holders are younger than the global average

• On this basis, approximately 1 million of the 500 million holders (500 million x 0.2 per cent) die each year。

Currently, most encrypted currency remains in the personal custody of individuals and very few owners will make plans for it. Even if only 10 per cent of the deceased were unable to open their wallets because no one knew how to access them, about 100,000 wallets would expire every year. If the average balance of these expired wallets is conservatively assumed to be only $20,000, approximately $2 billion of encrypted money will be withdrawn from circulation each year. And over time, that number will grow — and, after all, the younger generation will grow older。

Encrypted currency "disposed" per year as a percentage of total

This leaves us with a key question: how can these assets not be re-incorporated when they are transferred, given that the advantage of individual personal preservation of encrypted money is to remove intermediaries

To inherit assets that were not designed to be "remote."

Most of the solutions are now at two extremes: either simple but fragile, such as the deposit of notes in bank safes (vulnerable to loss and theft); or security is so complicated that no one is willing to use them. These two options are not satisfactory, so I have adopted a compromise approach — a simple three-step pass-through that is easy to remember, difficult to crack, accessible at all times and ensures 100 per cent non-custodial (i.e., without relying on an intermediary). The operation is as follows:

Step 1: Create an exclusive single page website

Creates a single-page website using a "cold-door domain name" consisting of 3-4 words - people like this type of domain name will not easily enter in the search box, but will have a special meaning for you personally to remember. At the same time, the costs of hosting the website for more than 10 years are paid in advance and automatic renewal is set up to ensure that the site is permanently accessible。

Step 2: Encryption of assistive words into a digital string

Choose a book you like, find the most common publisher of that book, and buy 10 copies. Then you convert your encrypted currency wallets into a digital string: for each word in the assistive word, find its location in the book, and record "page number - line number - word position in the line". For example, "112, 3, 5" is the "5th word in line 3 of page 112". Converts all assistive words to a numerical string using this method。

Step 3: Uploading a digital string to an exclusive website

Only a list of converted digital strings will be available on your dedicated website, as follows:

By the way, it's a digital string with a true assistive word, linked to $500 in encrypted currency. However, the site domain name is fictional, and the true assistive word is hidden in a book. Just one hint: I love to read detective novels

I know this may sound like a little bit of a big deal, and some might find it unnecessary, but it does make asset transmission more flexible while ensuring security. You can further improve your security, for example by storing information on the location of the assistive words with a rare book or a copy of a self-printing book; of course, you can be less troublesome — putting a hardware wallet (Ledger) directly in the safe and a metal sheet with the aid. Otherwise, your encrypted currency may end up simply "donating" to the block chain (i.e. permanently inoperable)。