Cryptocurrency has come a long way to shake off its perception of being “magic internet money.” Since bitcoin’s Genesis Block in 2008, cryptocurrency has grown from strength to strength, emerging as an asset class of note in its own right. The enthusiasm around the future of the sector has even led major investors like Shark Tank’s Kevin O’Leary to label cryptocurrency as a potential ‘12th sector of the S&P.’
Cryptocurrency: An Essential New Asset Class
Young people are always more likely to embrace innovation, and this was seen in the overwhelming presence of younger and first time investors in cryptocurrency. These relatively inexperienced retail investors saw this new market, where the rules were still being established, as an exciting new space to make their mark.
In comparison to the stock market, where one would need to compete with institutional players with billions of dollars at their disposal, cryptocurrency was the fresh newcomer where those even with a few hundred dollars could make a life-changing return. crypto insurance companies emerged as the preferred asset class for digital natives, i.e. those who grew up with technology. While older generations took time to warm to the idea, billions were already being made in the trading of digitally-native assets while engaging in discussion that only existed online.
The Rise of Intergenerational Digital Wealth
Making waves in 2021 thanks to the skyrocketing price, bitcoin and many other cryptocurrency assets reached record prices. Those who weathered previous bear markets and remained in the game made multibagger returns, and then came the gold rush surrounding NFTs bringing billions of dollars more.
Seeing these lofty results and how they are laying groundwork for further high expectations, the future of this asset class is bright. There will also come a day when we will have to plan for the intergenerational transfer of these assets to our next of kin. Over centuries of civilization we have developed the legal and practical protocols to ensure the process of inheritance happens efficiently. While we have a well-trodden for enduring assets like property, stocks and precious metals are now commonplace, we appear to be on the cusp of requiring similar protections for our natively-digital assets.
Protect Your Digital Estate
Life can be unpredictable, and the existing framework of wills is designed to make the inheritance process efficient and compliant with legal regulations. While passing cryptocurrencies onto the next generation is as easy as sharing a seed phrase or private key, the reality of how users store funds can make that complicated.
All platforms recommend maintaining cryptocurrencies in separate, unconnected wallets. The best level of security is gained by keeping the private keys in a secure location, ideally hand-written. Following these practices is the ideal start towards not only protecting your assets for immediate use, but for also safeguarding your digital estate.
Legacy Suite offers an ironclad solution that ensures your digital assets and estate are not only easily-managed in real-time, but are transferred to your next of kin. The utilization of smart contracts ensures that this process happens automatically, without a human ever reading the private contents of this data transfer. By pre-determining a recipient, any hassle and miscommunication are eliminated, and assets are automatically delivered to the individual’s personal wallet.
You can start safeguarding your hard-earned digital assets right now. For more information on how digital estate management can secure your asset holdings, visit the Legacy Suite website. Keep up to date with all developments at Legacy Suite by joining the community on Facebook, Twitter and Discord.