MicroStrategy CEO Michael Saylor has stirred controversy with his comments on Bitcoin self-custody and the risk of government seizures. In a recent interview on the “Markets with Madison” podcast, Saylor referred to the crypto community as “paranoid crypto-anarchists,” claiming that their fear of government intervention is exaggerated. He suggested that using large financial custodians like BlackRock to hold cryptocurrencies would be more secure than self-custody, dismissing the community’s concerns as a “trope.”
Saylor said that since the companies and people in the crypto market do not want to be regulated, deal with the government, or pay taxes, they end up having their assets confiscated. He suggested that if all the bonds were to be held following legal requirements and deposited with institutional custodians, the seizure problem would be significantly solved. As Saylor says, this approach suggests a more secure and strictly controlled manner of storing the cryptocurrencies.
Also Raed: Michael Saylor Urges Investors to Hold Bitcoin Amid Market Decline
Industry Leaders Reject Saylor’s Centralization Proposal
Saylor’s comments have sparked strong reactions from key figures in the crypto space, with many disagreeing with his pro-centralization stance. Ethereum co-founder Vitalik Buterin voiced his disapproval, calling Saylor’s idea of institutional custody “insane.” He stressed that trusting financial institutions with cryptocurrencies could lead to failure, citing historical examples to support his stance.
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Jameson Lopp, co-founder of Casa, also pushed back against Saylor’s views, highlighting in an X post on October 22 the risks of third-party custody and warning that it could increase the chance of asset seizure and loss. Many have posited that this obfuscation centralizes these necessary autonomy-driven actions, such as running nodes and engaging in forks.
Lopp added more to the argument that self-custody is critical to advance in the crypto space. He said that institutional custodians often avoid incorporating complex cryptographic features necessary for the continued security and development of the Bitcoin Layer.
Saylor’s comments have sparked a heated debate, with crypto leaders like Buterin and Lopp defending self-custody as crucial for the future of Bitcoin and decentralization.
Also Raed: Michael Saylor Predicts Bitcoin to Hit $13 Million, Billy Markus Responds with Humor
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.