- Michael Saylor’s shift to support institutional Bitcoin custody sparks strong criticism from the community.
- Simon Dixon and Vitalik Buterin criticize Saylor, suggesting his stance benefits big financial institutions.
- Saylor’s call for institutional Bitcoin custody contradicts his past advocacy for self-custody and decentralization.
Michael Saylor has come under fire for saying that Bitcoin custody should be managed by huge financial institutions rather than individual self-custody. His statements, expressed during an interview with Madison Reidy on October 21, sparked strong reactions from the Bitcoin community.
Saylor has long been a supporter of Bitcoin self-custody. He cited its relevance in maintaining decentralization and protecting users from centralized power. His recent views, which advocate for institutional custodianship, represent an unexpected reversal in his stance.
Saylor supported the change, claiming that concerns about government confiscation of Bitcoin are overstated and motivated by paranoid crypto-anarchists.
Saylor Community Criticism
The Bitcoin community reacted rapidly to Saylor’s remarks, with many prominent figures expressing disbelief. Simon Dixon said that Saylor’s shift in opinion could be motivated by MicroStrategy’s likely ambitions to become a Bitcoin-focused financial institution.
This change, Dixon says, might benefit from institutional custodianship if MicroStrategy begins to offer services such as collateralized loans.
John Carvalho, CEO of Synonym, accused Saylor of deviating Bitcoin from its initial function as a decentralized currency by transforming it into a mere investment vehicle. In addition, Carvalho saw Saylor’s words as a deviation from the ideas that first attracted people to Bitcoin.
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Vitalik Buterin Weighs In
Vitalik Buterin openly opposed Saylor’s remarks, adding to the disapproval. Buterin replied to a message from Jameson Lopp, the chief security officer of Casa, who praised the benefits of self-custody. Moreover, Buterin called Saylor’s comments crazy, adding to the uproar against the MicroStrategy CEO.
Buterin went on to argue that Saylor’s support for institutional custodianship is consistent with a policy that encourages regulatory capture. He suggested that heavily regulated organizations such as BlackRock and Fidelity might hold Bitcoin under government control. This will undermine the cryptocurrency’s decentralized spirit.
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