MicroStrategy’s executive chairman, Michael Saylor, has been slammed over his latest comments recommending Bitcoin custodianship through “too big to fail” financial institutions rather than using self-custody — something he once championed.
Saylor controversially suggested Bitcoiners have nothing to lose by transferring their Bitcoin (BTC) to institutions in an Oct. 21 interview with financial markets reporter Madison Reidy.
Saylor is seen as a champion for Bitcoin, and his comment appears to be a stark contrast to his previous support for crypto self-custody.
Anybody thinking a state-sanctioned Bitcoin seizure is possible is a “paranoid crypto-anarchist,” added Saylor when asked whether the United States government would strip Bitcoin holders of their self-custody rights like how holding gold was made illegal in 1933.
“It’s a myth and a trope that goes on over and over again,” Saylor said.
“There’s just a lot of fear that’s unnecessary.”
Instead of relying on hardware wallets, Saylor said it would be better to rely on “too big to fail” banks that are “engineered to be custodians of financial assets.”
Michael Saylor speaking with Madison Reidy. Source: Markets with Madison
His apparent U-turn on self-custody wasn’t received well by many Bitcoiners.
“Saylor is on a mission to relegate Bitcoin into an investment petrock and halt its usage as a currency,” said “Sina” — a founder of Bitcoin custody and security firm 21st Capital.
Michael Saylor, the leading voice and influencer on Bitcoin by a mile, says:
💀You don’t need to self-custody
💀You should trust government and institutions
💀Government would never confiscate your custodial Bitcoin
💀You’re a “paranoid crypto anarachist, and a profit-driven… https://t.co/mRdgUPgC5n— Joel Valenzuela (@TheDesertLynx) October 21, 2024
OG Bitcoiner and author of “Bank to the Future,” Simon Dixon, meanwhile, speculated Saylor is undermining the importance of self-custody because it wouldn’t benefit MicroStrategy’s long-term plan to turn into a Bitcoin bank and offer collateralized loans.
“Bitcoin anarchists: keep helping people gain freedom from banks, governments & central banks,” Dixon said.
John Carvalho, CEO of Bitcoin payments firm Synonym, also criticized Saylor’s change in tune, highlighting that he used to claim “Bitcoin is hope” for everyone.
“I am curious what exactly that means if we must discount the ‘paranoid crypto anarchists’ and their ‘tropes’ as salesmen with ulterior motives.”
Shortly after FTX crashed in November 2022, Saylor claimed Bitcoin self-custody prevents powerful custodians from corrupting the Bitcoin network:
“In systems where there is no self-custody, the custodians accumulate too much power and then they can abuse that power.”
“If you can’t self-custody your coin, there’s no way to establish a decentralized network,” Saylor added.
Saylor even once recommended people to remember their 12-word seed phrase and tell people to “f*** themselves” if they come for you.
You can tell people to go ‘f*ck themselves’ if they come for you #bitcoin
– Michael saylor pic.twitter.com/WMonJImx7K
— Arsen @ Relai (@satoshibaggins) August 16, 2023
Related: Tesla moves entire $765M Bitcoin stash to unknown wallets
Others were more supportive of Saylor’s take.
Julian Figueroa, founder and host of “Get Based,” believes Saylor’s message was targeted at institutions, not individuals.
“Institutions are not and never will be anarchists. Small businesses and plebs can have hardware wallets and sovereignty [but] 200+ employee institutions, pensions or wealth funds will need bitcoin banks.”
Head analyst at Bitcoin mining firm Blockware Solutions Mitchell Askew added that Saylor was willing to “stomach criticism” to make Bitcoin “less sketchy.”
Source: Mitchell Askew
Saylor’s MicroStrategy is the largest corporate holder of Bitcoin, with a stack of 252,220 BTC worth nearly $17 billion, Bitcoin Treasuries data shows.
In late June, Saylor estimated Bitcoin would reach $13 million per coin by 2045.
Magazine: Bitcoin ETFs make Coinbase a ‘honeypot’ for hackers and governments: Trezor CEO
