Private key
A private key is a cryptographic credential that provides access to cryptocurrency held through a direct blockchain asset or wallet. For a business owner, real estate owner, or private investor, the key affects whether a fiduciary or successor can access and transfer that cryptocurrency after the owner's death. If the key is inaccessible, the assets may be effectively lost.
How it works
A wallet requires the key for access, and losing the key can prevent access to and transfer of the underlying currency.
A fiduciary cannot request access from a central institution when a direct blockchain asset's private key is lost or stolen. If a successor cannot find the key after death, the assets cannot be recovered.
Where it shows up for owners of businesses, real estate and private investments
Private keys matter when cryptocurrency is part of an owner's private investments or otherwise forms part of assets a fiduciary or successor may need to access. The key is the access point described for a wallet or direct blockchain asset.
An inaccessible key at the owner's death can leave cryptocurrency effectively lost. The issue is access to the underlying currency and its transfer.
Points that are easy to confuse
Cryptocurrency is the underlying currency, and a wallet requires a private key for access.
Access through a private key differs from access through a central institution.
Common questions
What happens if a cryptocurrency owner's private key is inaccessible at death?
Cryptocurrency controlled by an inaccessible private key may be effectively lost. A successor who cannot find the key cannot recover the assets, and a fiduciary cannot request access from a central institution for a direct blockchain asset when its key is lost or stolen.
Is a private key the same as the cryptocurrency?
No. The private key provides access to cryptocurrency, while the currency is the underlying asset.