Buterin Criticizes Saylor's Bitcoin Custody Views
Ethereum co-founder Vitalik Buterin has called MicroStrategy founder Michael Saylor's suggestion for crypto users to use big banks for Bitcoin custody as "batshit insane." This comment adds to the growing criticism from the crypto community towards Saylor's views.
Buterin's Response to Saylor's Comments
Buterin responded to a post on October 22 by Jameson Lopp, Casa’s chief security officer and cypherpunk, who was praising the benefits of self-custody. Buterin stated, "I’ll happily say that I think Saylor’s comments are batshit insane."
This criticism follows Saylor's suggestion on October 21 that Bitcoin holders should depend on "too big to fail" banks, which he claims are "engineered to be custodians of financial assets." This recommendation seems to contradict his previous comments about self-custody.
Buterin's Criticism of Saylor's Approach
Buterin claimed that Saylor seems to be "explicitly arguing for a regulatory capture approach to protecting crypto." This would involve investment managers like BlackRock and Fidelity holding the asset, with all the lawmakers and law enforcement arms invested in these entities.
Buterin pointed out that there are many examples of how this strategy can fail, and stated, "for me, it's not what crypto is about."
Saylor's Warning to Crypto-Anarchists
In an interview with financial markets reporter Madison Reidy, Saylor warned "crypto-anarchists" that non-regulated entities that do not recognize government, taxes, or reporting requirements could increase the risk of the asset being seized.
Continued Criticism of Saylor's Comments
The criticism of Saylor's comments has continued to grow. Lopp argued that self-custody is crucial for individual Bitcoin holders and that it's important for the continued strengthening and improvement of the entire network.
ShapeShift founder Erik Voorhees added to the rebuttal on October 22, stating that the ability to withdraw Bitcoin into self-custody is the "check that prevents the centralization and corruption inevitable under any other arrangement." He further added that Saylor's casual dismissal of this fundamental precept is entirely inappropriate and deserves the backlash.
In a 2022 interview with Blockware head analyst Joe Burnett, Saylor provided several reasons why he believes crypto should be custodied by large centralized intermediaries. This interview occurred three weeks after FTX imploded, and users lost BTC left on the platform, as noted by the Blockware team in a post on October 22.
Bottom Line
The debate around Bitcoin custody is heating up, with prominent figures in the crypto community expressing strong opinions on the matter. While some argue for the use of large banks and centralized intermediaries, others firmly believe in the importance of self-custody. This discussion raises crucial questions about the future of crypto and its relationship with traditional financial institutions. What are your thoughts on this issue? Do you agree with Saylor's views, or do you side with Buterin and others who advocate for self-custody? Share this article with your friends and join the conversation. Also, don't forget to sign up for the Daily Briefing, which is available every day at 6 pm.
