Michael Saylor Faces Backlash Over Bitcoin Custody Comments

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MicroStrategy’s executive chairman, Michael Saylor, faced backlash following his recent comments suggesting Bitcoin holders should entrust their assets to large financial institutions instead of using self-custody.

During an interview yesterday with financial reporter Madison Reidy, Saylor said Bitcoiners “have nothing to lose” when they transfer their Bitcoin to institutions. This statement contrasts with his previous support for self-custody.

When asked about the possibility of the U.S. government restricting Bitcoin holders’ rights to self-custody, Saylor dismissed the notion, calling it a concern of “paranoid crypto-anarchists.” He referred to the fear of a state-mandated Bitcoin seizure as “a myth and a trope” and added, “There’s just a lot of fear that’s unnecessary.” Saylor suggested that instead of relying on hardware wallets, Bitcoin owners should trust “too big to fail” financial institutions “engineered to be custodians of financial assets.”

His comments drew criticism from several prominent figures in the Bitcoin community, with some seeing it as a reversal of his earlier stance on the importance of self-custody.

Bitcoin Advocates Respond to Saylor’s Remarks

Sina, founder of Bitcoin custody and security firm 21st Capital, voiced strong disapproval of Saylor’s recommendation. Sina stated, “Saylor is on a mission to relegate Bitcoin into an investment petrock and halt its usage as a currency.”

Michael Saylor, the leading voice and influencer on Bitcoin by a mile, says:

💀You don't need to self-custody
💀You should trust government and institutions
💀Government would never confiscate your custodial Bitcoin
💀You're a "paranoid crypto anarachist, and a profit-driven… https://t.co/mRdgUPgC5n
— Joel Valenzuela (@TheDesertLynx) October 21, 2024

Similarly, Simon Dixon, a longtime Bitcoiner and author of “Bank to the Future,” suggested that Saylor’s new position on custodianship might align with MicroStrategy’s business interests. Dixon speculated that Saylor is downplaying the importance of self-custody because it may not benefit MicroStrategy’s long-term strategy to become a Bitcoin bank and offer collateralized loans.

John Carvalho, CEO of Bitcoin payments firm Synonym, also expressed frustration, questioning Saylor’s shift from his previous assertion that “Bitcoin is hope” for individuals. Carvalho added, “I am curious what exactly that means if we must discount the ‘paranoid crypto anarchists’ and their ‘tropes’ as salesmen with ulterior motives.”

You can tell people to go 'f*ck themselves' if they come for you #bitcoin

– Michael saylor pic.twitter.com/WMonJImx7K
Related: Crypto Industry Now Mobilizes Against Perceived Quantum Threat
— Arsen @ Relai (@satoshibaggins) August 16, 2023

Support for Saylor’s Perspective

Despite the criticism, Saylor’s comments were supported by some in the Bitcoin space. Julian Figueroa, founder and host of “Get Based,” argued that Saylor’s message was directed at institutions rather than individuals. Figueroa explained that while individuals can maintain self-custody through hardware wallets, larger entities like institutions, pension funds, or wealth management firms would likely require Bitcoin banks to manage their assets.

Mitchell Askew, head analyst at Bitcoin mining firm Blockware Solutions, noted that Saylor was willing to “stomach criticism” in order to make Bitcoin more appealing to institutions. Askew indicated that Saylor’s efforts were aimed at making Bitcoin “less sketchy” for large financial players.

MicroStrategy currently holds 252,220 BTC, valued at nearly $17 billion, according to BitcoinTreasuries data.

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LAWRENCE

Lawrence is a cryptocurrency journalist covering blockchain developments and digital assets.

Lawrence holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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