Michael Saylor, the executive chairman of MicroStrategy, has faced criticism for his recent comments advocating for Bitcoin custodianship through large financial institutions rather than self-custody, which he previously supported.
In an interview with financial markets reporter Madison Reidy on October 21, Saylor controversially suggested that Bitcoiners have nothing to lose by transferring their Bitcoin to institutions. This statement contradicts his previous support for crypto self-custody.
When asked about the possibility of a state-sanctioned Bitcoin seizure, Saylor dismissed it as a myth and referred to anyone who believed in it as a “paranoid crypto-anarchist.” He compared it to the illegalization of holding gold in 1933, stating that it was a trope that keeps resurfacing.
Instead of relying on hardware wallets for self-custody, Saylor proposed that it would be better to trust “too big to fail” banks that are designed to be custodians of financial assets.
However, Saylor’s change in stance on self-custody did not sit well with many Bitcoiners. Some accused him of trying to turn Bitcoin into a mere investment and undermine its use as a currency. They speculated that Saylor’s shift in perspective was driven by MicroStrategy’s plan to become a Bitcoin bank and offer collateralized loans.
On the other hand, some individuals supported Saylor’s viewpoint. They believed that his message was targeted at institutions rather than individuals. They commended his willingness to face criticism in order to make Bitcoin more legitimate and trustworthy.
MicroStrategy, under Saylor’s leadership, holds the largest amount of Bitcoin among corporate entities, with 252,220 BTC worth nearly $17 billion. Saylor has previously made bold predictions about the future of Bitcoin, estimating that it could reach $13 million per coin by 2045.
While Saylor’s comments have sparked a debate within the Bitcoin community, it remains to be seen how his stance on custodianship will impact the future of the cryptocurrency.