Startup idea - Personal KMS. Third party Will and Trust private key management - Personal KMS
What happens if you store your crypto coins in an offline “cold wallet”, don’t tell anyone your password and then get hit by a bus? The answer is obvious your crypto money is lost forever! How does this effect crypto in general?
There are a finite number of bitcoin that will ever be produced, 21 million to be exact . If people continue to lose their wallets and die without passing on access to their wallets, it would seem that over time the number of Bitcoin in the wild would reach ZERO. The currency would die based people losing them or losing access to them. Sure the price of a coin might grow based on supply and demand, but at some point enough coins coins would be lost to equal 100% of the supply. The currency simply wouldn’t last.
At the current rate of 3.7 million out of 17 million total coins that have been mind. That’s 21.8% of the current supply and 17% of the LIFETIME SUPPLY of Bitcoin have already been lost in fewer than 10 years of Bitcoin’s existence (bitcoin started in 2009) . If these numbers continue, we can expect ZERO Bitcoin to exist in the wild in 50 years. Compare bitcoin to the lifetime of the Dollar and Bitcoin is blown away.
A Will and Trust system would manage the private key rotation of your offline wallets. Just as a legal will is written this third party legal holder would manage the private keys to not just crypto wallets, but everything part of your life that is protected by your “personal private keys”.