Bitrabo Editorial
In a recent discussion with journalist Madison Reidy, Michael Saylor, CEO of MicroStrategy, stirred up considerable debate within the Bitcoin community regarding his views on custody and regulation. He raised concerns about the dangers associated with significant quantities of BTC being controlled by third-party custodians and large financial institutions, suggesting that these entities are safer than self-custody practices.
Saylor argued that Bitcoin is safer when it is managed by regulated public institutions like BlackRock, Fidelity, and JPMorgan Chase instead of by unregulated private individuals. He remarked, “I believe the risk of seizure increases when Bitcoin is held by crypto anarchists who disregard regulations, taxes, or reporting obligations.”
The Significance of Bitcoin Self-Custody
The reaction from the Bitcoin community was immediate and vigorous, with platforms like Bitrabo reporting on the backlash. Ethereum co-founder Vitalik Buterin even criticized Saylor’s statement as “batshit insane,” showcasing the strong disapproval from prominent voices in the crypto industry.
In light of the backlash, Saylor seemed to adjust his position. On X, he stated: “I advocate for self-custody for those who are prepared and capable, as well as the right for everyone and all institutions globally to choose their custody methods. #Bitcoin benefits from diverse investments and should be inclusive.”
Gabor Gurbacs, the founder of PointsVille and a strategist for Tether, remarked that Saylor’s revised stance should not be viewed as controversial and is simply “common sense.”
Nevertheless, not everyone was swayed by Saylor’s clarification. Bitcoin supporter Max Keiser voiced that Saylor had not sufficiently emphasized the critical nature of self-custody—an essential element of Bitcoin’s value. He pointed out the substantial risks involved in relying on third parties to manage one’s Bitcoin, stressing that self-custody and the independence of finance from governmental control are fundamental aspects of Bitcoin.
“To clarify, El Salvador is establishing Bitcoin banking while ensuring that self-custody and the separation of state from money are fundamental principles of Bitcoin. Bitcoin is revolutionizing not only currency but also the concept of nation-states that has persisted for over 300 years,” he elaborated.
Industry expert James Van Straten theorized that MicroStrategy is attempting to establish itself as a Bitcoin bank, echoing Hal Finney’s predictions from 2010. He supported self-custody but recognized that institutional engagement and avenues like ETFs play a crucial role in promoting Bitcoin’s mainstream adoption.
“Saylor is operating in a completely different realm compared to the average person. Depending on the next U.S. administration, he needs to tread carefully. I would contend that it makes little sense for him to align himself with crypto-anarchist ideals. If he sees the necessity for yield, then it’s justified,” Van Straten commented on X.
Joe Burnett from Unchained described Saylor’s perspective as “incredibly based.” In contrast, Joel Valenzuela, who handles business development and marketing for Dash, remarked on X: “Capitulation. But you revealed your true intentions.”
As of the latest updates, Bitcoin is valued at $67,700.