E297 Lessons on Bitcoin Inheritance from El Salvador 2022

<p>Here’s what I learned about bitcoin inheritance at the recent <a href="https://adoptingbitcoin.org/2022/" target="_blank" rel= "noopener">Adopting Bitcoin</a> conference in El Salvador (<a href= "https://youtu.be/2_eOto4Nrtg" target="_blank" rel="noopener">my full bitcoin inheritance presentation here</a>).</p> <p>Background: (1) One year ago, El Salvador was the first country in world to make bitcoin legal tender, and (2) these conferences tend to be attended by the most hardcore bitcoiners, not so much the everyday users.</p> <h2>How does Chivo wallet work for bitcoin inheritance?</h2> <p><img class="aligncenter size-medium wp-image-43112" src= "https://anthonyspark.com/wp-content/uploads/2022/12/How-does-Chivo-wallet-work-for-bitcoin-inheritance-300x169.jpg" alt="How does Chivo wallet work for bitcoin inheritance?" width= "300" height="169" /></p> <p>When El Salvador launched bitcoin as legal tender, that came along with a government-maintained software wallet that you can keep on your phone (called Chivo). Based on my conversations with locals and with the researcher that I hired, Chivo is by far the dominant wallet in use in El Salvador.</p> <p>This is unlike other parts of the world where there are at least a dozen popular wallets (hardware and software). While the rest of the world is still scattered, El Salvador has one main wallet that everyone uses. It’s not like Mac vs. PC or Apple vs. Android phones (where people usually have one or the other).</p> <p>The Chivo wallet is highly centralized and KYC (“know your client”), which means you can’t get this wallet unless it is linked to your national ID number. It is managed by a centralized entity (the government). This is the antithesis of what U.S. bitcoiners are into.</p> <p>One pro is that because it is centrally managed, you don’t have to worry about losing your seed phrase. The government knows that the bitcoin belongs to a certain person.</p> <p>Another pro to this is that you can <a href= "https://anthonyspark.com/e222-beneficiary-designations-for