Key Points
- MicroStrategy’s Michael Saylor faces criticism from the Bitcoin community for supporting larger banks’ control of Bitcoin.
- Saylor’s recent comments contrast his previous support for Bitcoin self-custody, causing controversy.
Michael Saylor, MicroStrategy’s executive chairman, has recently come under fire from the Bitcoin community. He is being criticized for advocating for larger banks to take control of Bitcoin custody, a significant shift from his prior support for self-custody of the cryptocurrency.
Backlash Against Saylor’s Shift in Stance
In an interview on October 21, Saylor made a controversial statement that Bitcoin holders will gain nothing by transferring their Bitcoin to institutions. This statement contradicts his past four years of promoting Bitcoin and advocating for crypto self-custody.
Saylor had previously argued that Bitcoin self-custody helps protect the network from being compromised by powerful custodians. He declared, “If you can’t self-custody your coin, there’s no way to establish a decentralized network.” This was following the collapse of FTX in November 2022.
During the same interview, when asked about the possibility of the US government stripping Bitcoin holders of their self-custody rights, Saylor dismissed the idea as a paranoid crypto-anarchist’s fear. He further commented that it would be better to rely on “too big to fail banks engineered to be custodians of financial assets” rather than hardware wallets.
Community Reactions
Saylor’s comments sparked widespread criticism across the crypto market. Sina, the founder of Bitcoin custody and security firm 21st Capital, accused Saylor of trying to reduce Bitcoin to an investment pet rock and halt its usage as a currency.
Simon Dixon, a popular Bitcoin advocate, accused Saylor of undermining the significance of self-custody, suggesting that it would not align with MicroStrategy’s long-term plans of transforming itself into a Bitcoin bank and offering collateralized loans. John Carvalho, CEO of Bitcoin payments firm Synonym, also criticized Saylor’s change in stance.
However, some defended Saylor, arguing that his comments were directed towards institutions, not individual users. Julian Figueroa, founder and host of “Get Based,” noted that institutions will never be anarchists and will need Bitcoin banks.
Recently, several top Wall Street banks like BNY Mellon have secured licenses for crypto custody.
