Statements made by a famous executive from a Bitcoin development company, in which he called on large financial institutions to acquire Bitcoin, Disappointed Cryptocurrency community.
Michael Saylor, CEO of MicroStrategy, is now at the center of strong criticism after he said it would be better for Bitcoin to be in the custody of “too big to fail” banks rather than self-custodianship.
Controversial observation
Saylor, in a podcast interview, dissuaded investors and traders from a self-custodial approach to Bitcoin while floating the idea of custodianship through large financial institutions such as banks.
He believes that large, established financial institutions can better serve Bitcoin holders because they are designed to secure financial assets.
In the aforementioned interview, Saylor exposed the possibility of any government seizing Bitcoin as a “metaphor,” saying that the risk of seizure increases when cryptocurrencies are controlled by “a group of crypto anarchists” who ignore government authority and do not. Tax recognition and reporting requirements.
Vitalik Buterin didn't like Michael Saylor's Bitcoin comments. Illustration: Darren Joseph; Photos: Shutterstock
He explained that unlike these “crypto-anarchists”, financial institutions follow legal and tax obligations, arguing that this reduces the chances of any government intervention.
Many cryptocurrency analysts were surprised Saylor’s position They find it difficult to understand the concept that the executive is pushing.
BTCUSD trading at $66,265 on the 24-hour chart: TradingView.com
The “Crazy Patchett” idea.
Vitalik Buterin, co-founder of Ethereum, criticized Saylor for his controversial view on saving Bitcoin, saying the idea is… “crazy”.
Buterin strongly criticized the banks that take care of the currency, arguing that Saylor’s statements are already outdated because there have been so many technological advances that have transformed “the entire swap space.”
I’ve probably done more than most to popularize the “mountain man” trope (btw I consider these statements I made outdated; Snarks and AA have completely changed the barter space), and I’ll happily say that I think @saylorHer comments are crazy.
He seems to be explicitly asking…
— Vitalik.eth (@VitalikButerin) October 22, 2024
The Ethereum co-founder doesn’t believe the approach pushed by Saylor with the goal of protecting cryptocurrencies will flourish, saying that’s not what cryptocurrency is about.
“There are plenty of precedents showing how this strategy can fail,” he added.
The Bitcoin community refutes the idea
Bitcoin proponents, who are staunch advocates of self-custodialism, do not believe in the idea and logic raised by Saylor in adopting custody of Bitcoin through banks.
Sina Ji, co-founder of TwentyFirst Capital, said the idea could turn Bitcoin into an “investment rock” and warned that it could lead to cryptocurrencies being used as currency.
Sina J described Saylor’s perspective as “frightening” and viewed him as a spokesman for the government and financial institutions.
If you’re surprised by Saylor’s recent comments, you haven’t been paying attention. https://t.co/Tf7CDM4LqT pic.twitter.com/GTAr2oXjEC
— Jameson Lopp (@lopp) October 21, 2024
Jameson Loeb, chief security officer at Casa HODL, said the bank’s holding of BTC has long-term implications for the cryptocurrency space.
Loeb argued that the centralization of digital money increased the risk of loss and confiscation, making Bitcoin users more likely to be disenfranchised by governance activities such as fork trading and node operation.
He stressed that self-guarding is important to further strengthen and enhance the network and is not just a concern for individual owners.
Featured image from Shutterstock, chart from TradingView
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