YEREVAN (CoinChapter.com) — Michael Saylor, the founder of MicroStrategy, has sparked a heated discussion after suggesting that Bitcoin holders should trust large financial institutions for storing their assets rather than focusing on self-custody.
Buterin Slams Saylor’s Push for Big Bank Bitcoin Custody
Vitalik Buterin, Ethereum‘s co-founder, along with other prominent voices in the crypto community, has strongly reacted to Michael Saylor’s comments. Specifically, Buterin called Saylor’s idea “batshit insane” in response to an October 22 post by Jameson Lopp, Chief Security Officer at Bitcoin custody firm Casa.
Meanwhile, Lopp, a strong advocate of self-custody, emphasized that maintaining control over one’s Bitcoin is crucial for securing the network and protecting individual assets. Furthermore, Buterin shared his concerns. He stated that Saylor’s approach seemed to favor regulatory capture, involving large investment firms like BlackRock and Fidelity. He pointed out that this stands in opposition to the core principles of Bitcoin and cryptocurrency.
Self-Custody Advocates Speak Out
The reaction from the crypto community further intensified when Erik Voorhees, founder of ShapeShift, joined the criticism. On Oct. 22, Voorhees stressed the importance of self-custody. He highlighted its role in preserving decentralization and preventing the risks associated with centralized control. Moreover, he argued that the ability to withdraw Bitcoin into self-custody serves as a crucial safeguard against centralization.
Saylor’s Previous Comments on Centralized Custody
Michael Saylor’s recent comments supporting the use of big banks for Bitcoin custody show a clear shift from his earlier stance. In the past, he was a strong advocate for self-custody. He encouraged Bitcoin holders to take control of their own assets. However, his recent remarks signal a change in perspective, which has raised concerns within the crypto community.
This shift isn’t entirely new, as Saylor had previously shared similar thoughts during a 2022 interview with Blockware head analyst Joe Burnett. In that interview, Saylor provided reasons why he believed crypto should be held by centralized intermediaries. The Blockware team also noted that this conversation took place just three weeks after FTX collapsed, causing many users to lose their Bitcoin stored on the platform.
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