QuickTake:

• Only 37% of US crypto holders have a plan for sharing wallet information posthumously.
• Nearly 40% of US adults store passwords mentally, posing risks.
• Half of the population holds online assets unknown to their partners.
• Control of digital assets after death remains a significant issue.

In a recent survey by digital-security firm All About Cookies, a startling revelation emerged: 63% of US crypto holders do not have a digital will or any arrangements to pass on their wallet information in the event of their death. This lack of preparation raises a critical question: what happens to your crypto when you die?

The survey, which involved 1,000 US adults, highlights a significant gap in the digital security practices of crypto holders. Despite the increasing value and importance of digital assets, only 37% of crypto holders have made plans to ensure their loved ones can access their cryptocurrency after their demise. This oversight could lead to significant financial losses for heirs, with the median value of respondents’ online assets being around $8,000.

Josh Kobert, senior data scientist at All About Cookies, expressed his surprise at these findings, given the substantial amount of time people spend online and the extent to which digital spaces are integrated into daily life. “Given how much time most people spend online and how much of our daily lives exist in a digital space, the lack of preparation is quite surprising,” Kobert told DL News.

The issue extends beyond cryptocurrency. Carl Öhman, author of The Afterlife of Data: What Happens to Your Information When You Die and Why You Should Care, pointed out that digital inheritance is a broader concern encompassing all online assets and data. “Taking care of your digital afterlife is naturally an important personal concern to many, especially if you care about your next of kin. But keep in mind that it is also a political matter,” Öhman said.

He emphasized the larger implications of digital inheritance, noting that approximately 2.2 billion people are expected to die within the next three decades, most of whom will be internet users. The control over their data, which is currently dominated by a few tech corporations, could lead to a monopolization of the digital past.

One of the critical issues highlighted by the survey is password storage. Nearly 40% of US adults store some or all of their passwords mentally, without writing them down or using a password manager. This practice poses a significant risk: if these individuals become incapacitated or die suddenly, there is no way for their loved ones to access their financial information. Moreover, storing passwords mentally often leads to the use of simple, easy-to-remember passwords, which can be easily guessed or “brute-forced” by malicious actors.

This situation creates a dual threat. First, the lack of accessible information for heirs can result in lost assets. Second, the ease with which these passwords can be compromised puts the assets at risk of theft during the holder’s lifetime. The survey underscores the importance of secure and accessible password management practices.

The survey also revealed that half of the population has online assets that their partners are unaware of. This lack of transparency can further complicate the inheritance process. When a crypto holder dies without sharing information about their assets, their partners or heirs may be completely unaware of the existence of valuable digital currencies, leading to potential financial loss.

Given these findings, it is crucial for crypto holders to take steps to secure their digital legacy. Creating a digital will or a similar arrangement to pass on wallet information is a necessary measure. This could involve writing down key information and storing it in a secure place, using a password manager that allows sharing of access upon death, or employing services that specialize in digital inheritance.

Additionally, educating loved ones about the existence and value of digital assets is essential. Open communication can ensure that partners or heirs are aware of these assets and know how to access them if needed. This proactive approach can prevent the loss of valuable digital currencies and other online assets.

The broader issue of digital inheritance also calls for a political and societal response. As Carl Öhman pointed out, the future control of vast amounts of personal data will shape our collective digital past. Ensuring that individuals have control over their digital afterlife and that their data is managed according to their wishes is a significant challenge that needs to be addressed at both individual and policy levels.

In conclusion, the survey by All About Cookies highlights a significant oversight among US crypto holders in preparing for the digital afterlife. With 63% lacking a plan to share their wallet information, the risk of financial loss for loved ones is substantial. Secure password management and transparent communication about digital assets are essential steps in addressing this issue. Moreover, the broader implications of digital inheritance call for a comprehensive approach to ensure that individuals’ digital legacies are preserved and respected.