Michael Saylor says he supports Bitcoin self-custody for all amid community outrage

0 1,977 2 minutes read

Key Takeaways

Michael Saylor reverses his stance on Bitcoin self-custody, now supporting it as a fundamental right.
Criticism from industry leaders influenced Saylor’s revised position.

Michael Saylor said he advocates for Bitcoin self-custody as a fundamental right after his bank custody proposal sparked outrage among crypto community members.

In an attempt to clarify his position, Saylor stated that he believes individuals and institutions have the freedom to choose how they manage their crypto assets and that “Bitcoin benefits from all forms of investment by all types of entities.”

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 key figure behind MicroStrategy, the world’s largest corporate holder of Bitcoin, recently suggested that Bitcoin holders should rely on “too big to fail” banks for custody. He thought that this approach would reduce the risk of asset seizure by regulatory authorities.

His earlier comments placed him at odds with a large part of the crypto community, which supports self-custody as a fundamental principle. Saylor’s statements raised questions, given his established support for self-custody.

His remarks have drawn sharp criticism from prominent figures in the crypto community. Vitalik Buterin, co-founder of Ethereum, labeled Saylor’s comments as “batshit insane.” Buterin argued that Saylor’s proposal for major financial institutions to handle Bitcoin custody contradicts the decentralized ethos of crypto.

Erik Voorhees, founder of ShapeShift, also condemned Saylor’s dismissal of self-custody. He stated that it undermines a core safeguard against centralization and corruption.

MicroStrategy aims to build a Bitcoin bank

As the co-founder and executive chairman of MicroStrategy, Saylor has played a pivotal role in the company’s substantial investments in Bitcoin. Under his leadership, the company has accumulated over 252,000 BTC, valued at around $17 billion at current prices.

Building up a Bitcoin portfolio is the first step towards a long-term strategy. Saylor has unveiled an ambitious vision to transform the company into the leading Bitcoin bank, aiming to create a comprehensive suite of Bitcoin-based financial products.

He believes that this approach will allow the company to dominate the market and potentially reach a valuation of up to $1 trillion as Bitcoin’s value increases over time.