FAST FACTS
- 1 Bitcoin (BTC) currently costs about $7,500 (as of July 23, 2018).
- The current market capitalization of Bitcoin is $131,987,854,796.
- The average Bitcoin transactions per day equals 8,338.
In 2010, a person paid 10,000 units of Bitcoin for two pizzas. It sounds like a good deal — cryptocurrency in exchange for a tangible item. Today, those 10,000 units are worth approximately $100 million.
Bitcoin is still a new kid on the block when it comes to what people think of as currency, but it continues to gain interest. While some people planning for their retirement will stick to tried and true methods like savings accounts and 401(k) investments, others may be interested in including cryptocurrency in their estate plan. Should you?
As Atlanta estate planning attorneys, we believe caution is the best path forward. Here’s why.
Cryptocurrency as an Asset
If you have invested in Bitcoin, you know that it is stored in a digital wallet. You must have a private key to access it. This makes Bitcoin more difficult to access after your death than a traditional bank account or even your stock options. If you don’t leave the login information for our digital wallet behind and give someone your personal key, your Bitcoin is essentially lost forever.
It begs the question, though, is investing in Bitcoin a good idea? Is it a new part of a smart estate plan? The answer to those questions varies depending on the type of disposable income you currently have access to.
The Downside of Bitcoin
Bitcoin is incredibly volatile. While it could be a lucrative component to an overall estate plan, it may not be a good idea to count on it as the sole provider for your family in the future. Your Atlanta estate planning lawyer can help you determine if it’s the right choice for you and your desires.
Any assets you have, including cryptocurrency or other digital holdings, should be included in your estate plan. If you invest and don’t include those investments, they will be lost and of non-value to your family or other beneficiaries.
There is, of course, the potential for Bitcoin to be worth an incredible amount in the future, and you wouldn’t want your loved ones to lose out on that wealth simply because you didn’t include it.
Speak to an Atlanta Estate Planning Attorney to Figure Out the Best Path Forward
A comprehensive estate plan is an important undertaking and should not be put together without the help of an experienced attorney. If you want to ensure that your final wishes are carried out and that your family is taken care of after they are gone, an estate plan is a way to ensure it happens.
Whether you are only beginning to save and invest or you have already amassed a considerable amount of wealth, discussing your estate plan is a wise idea.
For assistance in creating your estate plan, contact your Atlanta estate planning lawyer today. A member of our team will help you schedule an appointment with an attorney at which time you can discuss your current financial standing and your desires for your family after your passing. Call our office to schedule a meeting and begin securing the financial future of your family.
