Binance's will function after death... Perfect for bitcoin

[m2017]

Well, Binance founder CZ has suggested a function to be used in binance where one can set up a will and put in a contact to which the coins will be given to after you have passed. Either the coins will be passed to your trusted person if the account is inactive for a specific amount of time or your family can submit a death certificate. This sounds to me a fool proof function. Could there be downsides to this function?

I am sure that many will focus on one main drawback - this is that your funds will be stored with third parties (Binance) until the transfer of the "inheritance". Anything can happen before the trusted person actually receives the coins: bankruptcy of the company, theft by hackers or employees, technical problems leading to the impossibility of receiving crypto.

Despite this, I assume that this function will become popular, knowing that the company has a huge user base and resources, as well as trust. After some time, users who neglect their privacy, which is the majority, will massively use this function. Binance is becoming a de facto analogue of banks (+notary office) in the crypto niche.

It is also convenient and will allow users to "shift" responsibility from themselves in the matter of ensuring the safety of assets. In a world in which robberies of bitcoiners are becoming common.

I won't say that I like these trends, where centralized platforms gain too much power over users (which is exactly what happens if your resources are in their hands), but it seems like this is the direction the industry will develop.

[sokani]

CZ is a good salesman, selling shit to people but leaving a very important part; the requirements to claim the funds. Like banks, I believe the exchange will also be asking for death certificate, Letter of administration, KYC and everything they can think of.

It's not worth it, self custody is still the best. It's better to share the seed phrase with a family member you trust in case you pass on, than to enable such feature on a CEX.

[BABY SHOES]

There is nothing wrong with this idea... CZ conveyed how his idea would be but as easy as saying but it would be complicated when claiming his inherited coins, usually centralized exchanges will have many other reasons to rob money.

Another possibility... what if the exchange is hacked and goes bankrupt? Don't say Binance is the most secure exchange with large cash reserves anything can happen that we don't expect.

Keeping more of it in a non-custodial wallet would be safer, and if it is to be inherited to children, I think you should learn about this from a non-custodial wallet.

[EluguHcman]

CZ proposed this I think two weeks ago, but my advise to people is that they should not hold any coins on an exchange except the money they are actively using to trade.

The best place to hold your coins are on cold noncustodial wallet that are open source.

People should learn about multisig, timelock and other inheritance means.

And reading through the news update as quoted

The update allows the platform to notify a user’s emergency contact after prolonged inactivity. That contact can then initiate an inheritance claim.

Let us take the Binance exchange app for instance which detects a wallet account to be inactive in a duration of 12 months (exactly year). Which experience user would even have to hold their Bitcoin or crypto assets there for such a long time if not for emergency or Short term use and want to hold funds there for such a long term even with how porous the custodian exchange platforms are?
Really insane.

My thoughts on this new feature proposal : it is a format to lure crypto users interests to store their funds in the exchange following the lookout to persons not having access to their Wallets as a case of lost of seed phrase. Such a misleading option because users funds are either no more on their custody alone neither it is a sure safe.
So reclaiming it through a successor on the designated inheritance contacts will be seen as option.
Other lookout people will fall victim to this is the intensifying news about those who had lost their relatives and inaccessible to their wallets forever.

The ulterior motive is that... They want you to exercise that service of holding your assets on the long term with them.

[Russlenat]

You’ll be fine with Bitcoin as you don’t need to entrust your future to some company, because just like people, they can still be greedy. And if they suddenly go out of business or pull off an exit scam, everything you’ve worked hard for could be gone.

Family is still the best people to trust. If you pass from this world, at least give them a way to access it. Maybe split the key combinations and store them in different banks. That way it stays secure, and when the time comes, just tell them to check the deposit boxes you’ve set up.

[Potato Chips]

Ain't no way, I'm keeping crypto under someone's custody for extended period. That's non-negotiable. All these platforms are constantly being targeted by bad actors, it wouldn't be odd for hacks to happen. There's no guarantee that all hacks will always be reimbursed in full and in a timely manner, either. Too risky IMO.

Othe folks in bitcointalk have shared bitcoin lock time usage for this. Though I think I wouldn't mind keeping few seeds in a safe with my fam knowing the pin as that's a palatable risk for me.

[JiiBs]

How many coins are you confident in to still do well after a couple of years? After you have already passed away? How many coins would you want to pass on to your children? For me, the answer is bitcoin. It is one of the few, if not the only one, I am confident that will still have good value over 10 or 15 years or maybe even more. It has always been a topic of discussion how to pass on the bitcoins we are holding now when we pass unexpectedly or not.

Bitcoin is the one coin that would always top that list and the major reason why I say this is not just because it’s the first or the place it stands in the cryptospace but because it is the only truly decentralized currency there is. With Satoshi Nakamoto completely detached from Bitcoin and having it rely on the consensus of users or investors alike to build its strong network, ain’t no way it’s going to get fizzled out.

[Josefjix]

These are means of taking users money after the death of the owner because not everyone will sign in that features to leave assets for his descendance, so the user that fails to do that will be tracked by Binance engine, watch over it and detect the owner no longer alive.
Once this is discovered, it would be secretly used by Binance inside investors for inner investments, like would be done in a way that if they are caught, they could easily replace any used funds.

[Cryptohygenic]

I don't find keeping my funds in the Centrslized exchange like I want to save it there but only when I want to do transactions that I know only the platforms offers the services otherwise, there is no I can not.
The vulnerability for users Privacies not secured and sites are vulnerable to hack are key factors why I don't like it and muchly, it encompasses comprise of the decentralization of bitcoin and users anonymity will be contrarily too.

[Scarlett_23]

Acquiring any wealth is difficult and time-consuming. Especially acquiring valuable assets like Bitcoin. People earn for themselves and for their future generations. If they suddenly lose their balance or their family or future generations cannot enjoy the wealth they have earned in their life after their death, then their entire life's work is in vain.

So I think wealth is not only for earning but also for its proper preservation. So centralized exchanges should only be used for buying and selling coins and it is better to withdraw it immediately and keep it in your wallet. Because there is no legal guarantee of getting the wealth back from there. Binance is a very important institution for Bitcoin. Its interface is simple and its liquidity is high, that is, it is a perfect institution for buying and selling. But not for preserving the wealth of others. So I am in favor of keeping my own coins to myself for personal safety.
I will write down my 'keys' in advance and tell a trusted person in the family so that my inheritance can use it properly after my death.

[davis196]

How many coins are you confident in to still do well after a couple of years? After you have already passed away? How many coins would you want to pass on to your children? For me, the answer is bitcoin. It is one of the few, if not the only one, I am confident that will still have good value over 10 or 15 years or maybe even more. It has always been a topic of discussion how to pass on the bitcoins we are holding now when we pass unexpectedly or not.

Well, Binance founder CZ has suggested a function to be used in binance where one can set up a will and put in a contact to which the coins will be given to after you have passed. Either the coins will be passed to your trusted person if the account is inactive for a specific amount of time or your family can submit a death certificate. This sounds to me a fool proof function. Could there be downsides to this function?

See here.

1.I'm not so sure about Bitcoin having extremely high value after 10 or 15 years. Maybe AI and quantum computing will change the crypto world forever.
2.I don't have children, so I couldn't care less about crypto inheritance and all that stuff.
3.Should we really trust a big centralized crypto exchange like Binance holding ours coins and giving them to our children, after we die?
What if Binance finds a way to block the accounts for a "valid reason" and never give the coins to the people in the will?
Just look at Binance's trustpilot score. 1.5 out of 5... Binance seems like a totally legit and trustworthy company.   What could possibly go wrong?

[betswift]

I don't find keeping my funds in the Centrslized exchange like I want to save it there but only when I want to do transactions that I know only the platforms offers the services otherwise, there is no I can not.
The vulnerability for users Privacies not secured and sites are vulnerable to hack are key factors why I don't like it and muchly, it encompasses comprise of the decentralization of bitcoin and users anonymity will be contrarily too.

The percent is very small, yet it's always there, so I agree - your privacy should be your biggest concern in the space, and it's rightfully addressed by the situations where your coins were not in your custody - and they were lost forever.

[EarnOnVictor]

Well, Binance founder CZ has suggested a function to be used in binance where one can set up a will and put in a contact to which the coins will be given to after you have passed. Either the coins will be passed to your trusted person if the account is inactive for a specific amount of time or your family can submit a death certificate. This sounds to me a fool proof function. Could there be downsides to this function?

See here.

We know the difference and the disadvantages/advantages between the custodial and non-custodial arrangements, what CZ pushed for is good, still, we should not forget that "Not Your Keys, Not Your Coins," and if when some people are alive Binance is denying them their money, how much more when they are dead? No CEX should be trusted, self-custody is the best, and it is the person holding their coin who should know how to get the access to the account known to their trusted person(s).

[shield132]

How many coins are you confident in to still do well after a couple of years? After you have already passed away? How many coins would you want to pass on to your children? For me, the answer is bitcoin. It is one of the few, if not the only one, I am confident that will still have good value over 10 or 15 years or maybe even more. It has always been a topic of discussion how to pass on the bitcoins we are holding now when we pass unexpectedly or not.

Well, Binance founder CZ has suggested a function to be used in binance where one can set up a will and put in a contact to which the coins will be given to after you have passed. Either the coins will be passed to your trusted person if the account is inactive for a specific amount of time or your family can submit a death certificate. This sounds to me a fool proof function. Could there be downsides to this function?

See here.

Many crypto owners are young people. It's a serious ambition from CZ to add that function to their exchange because experience tells us that exchanges get hacked or bankrupt very often. Since many crypto users are young people, I don't think that Binance will be successful for 20-30 or more years and these are the years when people in their 40s, 50s and 60s will probably die. I wouldn't trust an exchange to hold my coins for so many years. If someone has money on exchange for trading and accidentally dies young in a few days, weeks or months, then this feature might be good for the family members but I think that we all should hold our coins on non-custodial wallets and give keys to our family members as an inheritance.

[purple_sparkles]

Sometimes decisions that are actually disadvantageous for people are presented as a great benefit and advantage, but in reality, they can lead a whole lot of paperwork, bureaucratic hurdles, fees, and charges, making the process even more complicated. It's quite possible that similar difficulties will arise here as well when dealing with inheritance procedures. I always view such "innovations" with skepticism and distrust.

[BitGoba]

How many coins are you confident in to still do well after a couple of years? After you have already passed away? How many coins would you want to pass on to your children? For me, the answer is bitcoin. It is one of the few, if not the only one,

See here.

There is no second-best . The hardest money always wins  and that’s Bitcoin. All other crypto will go to zero compared to Bitcoin. Bitcoin will absorb the monetary premium from other forms of money, including real estate.That doesn’t mean Bitcoin won’t face serious challenges in the future. The people who control the current monetary system owners of central banks and commercial banks . have no interest in seeing a competing or alternative form of money succeed. They’ve built their system over centuries, and they will fight to preserve it.

We should expect attacks on Bitcoin. After all, Bitcoin is software, based on social consensus  unlike gold, it is not physically immutable. As Bitcoin continues its path toward monetization, there will likely be forks and attempts to corrupt or co-opt it.People are vulnerable  and money corrupts easily. Many can be bought or coerced

But history shows that such forks almost always go to zero. Why? Because humanity desperately needs hard money and Bitcoin, as the hardest money ever created, is positioned to absorb the entire global monetary premium

[osasshem]

To have a safe means of passing ones crypto holdings down to his decent, it should be through assets stored on wallet address. Any of the wallets will serve, though depending on the value of assets.

It is a good option from CZ to make a way-out for passing on one's holdings to his/her decent, but how trusted can this process be? It is possible that one might have big sum of asset on an exchange (as a big trader), and life can happen. Will the documentations provided be considered enough as proof for the transfer of ownership? It is a good idea, but not safe enough to trust on.

[Z-tight]

CZ is a very smart guy and always comes up with features that ensures longevity and dominance of Binance in this crypto space.

Yeah, smart enough to deceive gullible people who do not understand something as easy as 'not your keys, not your coins'. I have actually met people in real life who believe that Binance is safer for them than self custody, despite all i explained to them, they completely disagreed, that goes to show you how much influence cz has over people in the industry.

This feature would appeal to a lot of gullible people, that i am sure of, because even without this feature, there are still a lot of people who use binance as their wallet.

[fikrett]

CZ is a very smart guy and always comes up with features that ensures longevity and dominance of Binance in this crypto space.

Yeah, smart enough to deceive gullible people who do not understand something as easy as 'not your keys, not your coins'. I have actually met people in real life who believe that Binance is safer for them than self custody, despite all i explained to them, they completely disagreed, that goes to show you how much influence cz has over people in the industry.

This feature would appeal to a lot of gullible people, that i am sure of, because even without this feature, there are still a lot of people who use binance as their wallet.

That's another side of the coin - CEXes are seen as these reliable giants because they are advertised to the brim as such.

And that's the reason why some give up their custody..

[moneystery]

the only coin that i believe that it will be able to do well in the next few years is bitcoin. we don't need to question how it will perform in the long run, because from the time it was launched until now it has performed very well despite various major events and global geo-political conflicts. and because of that bitcoin is only perfect as a coin to pass on to your children and grandchildren since its value can increase very well in the long run.

and the best place to hold it is just a non-custodial wallet. not a wallet on an exchange. because the exchange has the risk of collapsing at any time, there are many examples of this. whereas in a non-custodial wallet a person can have full control over their own bitcoin and they can use features suitable for inheritance such as multisig and timelock.