Encouraging Bitcoin (BTC) holders to deposit them with financial institutions, Michael Saylor alienated a large part of the crypto community including the co-founder of Ethereum, Vitalik Buterin. This forced the co-founder of MicroStrategy to clarify his remarks.
On self-custody, Vitalik Buterin, supported by a large part of the crypto community, is ruthless
This week, Michael Saylor surprised the crypto ecosystem by being rather unfavorable to self-care. Bitcoin maximalist and co-founder of MicroStrategy said Bitcoin holders had every interest in entrusting the custody of their cryptocurrencies to large financial institutions like BlackRock, JPMorgan and Fidelity.
🔎 To better understand the concept of self-custody, consult our fact sheet on the differences between a custodial and a non-custodial wallet
Michael Saylor also suggested that “ Bitcoin holders should entrust their cryptocurrencies to too-big-to-fail banksdesigned to be custodians of financial assets » instead of keeping them on non-custodial wallets.
Quickly, a large part of the crypto community criticized Michael Saylor's comments. As leader, Vitalik Buterlin who stated that “ Michael Saylor's comments were completely crazy “.
For the co-founder of Ethereum, “ Bitcoin is more threatened by the authorities from the moment it is held by unregulated “crypto-anarchists” who do not seek to comply with the law “. Vitalik Buterin then took the time to explain why he was against the position taken by Michael Saylor :
He seems to explicitly plead in favor of a regulatory capture approach to protect cryptocurrencies. There are many precedents showing how this strategy can failand for me, that is not the goal of cryptocurrencies.
I probably did more than most to spread the “mountain man” trope (btw I consider those remarks of mine outdated; snarks and AA changed the tradeoff space completely), and I'll happily say that I think @saylor's comments are batshit insane.
He seems to be explicitly arguing for a…
— vitalik.eth (@VitalikButerin) October 22, 2024
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Michael Saylor walks back his comments, clarifying his initial statement
The crypto community also highlighted the potential IT threats weighing on large financial institutions. In the event that they were to suffer a cyberattack where the private keys of BTC holders were stolen, their funds could disappear overnight.
The founder of the company specializing in the direct exchange of cryptocurrencies ShapeShift, Erik Voorhees, also expressed his disagreementstating that the ability to withdraw BTC to self-custody is “ typically the kind of control that prevents centralization and promotes corruption ».
👉 Also in the news – “Long Bitcoin (BTC)”: This billionaire sees cryptocurrency as a hedge against inflation
For Erik Voorhees, “ For Michael Saylor to so easily reject this fundamental principle is completely inappropriate and deserves these reactions “. Faced with the flood of criticism, Michael Saylor decided to clarify his comments on Xultimately advocating the self-custody of Bitcoin for those who wish it:
I support self-care for those who want and canthe right to self-custody for all and the freedom to choose the form of custody and guardian for individuals and institutions around the world.
I support self-custody for those willing & able, the right to self-custody for all, and freedom to choose the form of custody & custodian for individuals & institutions globally. #Bitcoin benefits from all forms of investment by all types of entities, and should welcome everyone.
— Michael Saylor⚡️ (@saylor) October 23, 2024
The co-founder of MicroStrategy took the opportunity to clarify that “ Bitcoin benefits from all forms of investment by all types of entities, and should welcome everyone ».
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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