MicroStrategy Founder Michael Saylor Revises His Stance on Bitcoin Self-Custody
Michael Saylor, the founder of MicroStrategy, has revised his earlier statement that large banks should be responsible for the custody of Bitcoin. This change of heart came after a significant backlash from the cryptocurrency community.
Saylor stated on October 23, “I support self-custody for those willing and able, the right to self-custody for all, and freedom to choose the form of custody and custodian for individuals and institutions globally.”
His previous comments had drawn criticism from several prominent figures in the crypto community, including Ethereum co-founder Vitalik Buterin. Saylor had referred to “paranoid crypto-anarchists” and suggested that Bitcoin holders should entrust their assets to “too big to fail” banks, which he claimed were “engineered to be custodians of financial assets.”
In an attempt to clarify his position, Saylor added, “Bitcoin benefits from all forms of investment by all types of entities, and should welcome everyone.”
Industry Reactions to Saylor's Comments
Gabor Gurbacs, an adviser at VanEck, responded to Saylor's revised statement by saying that this shouldn't be a controversial position, but rather "just common sense."
However, Dash marketer Joel Valenzuela described Saylor's change of heart as "capitulation," implying that Saylor had revealed his "true colors."
Saylor's original interview on October 21 sparked a heated debate about self-custody and also upset several Bitcoin enthusiasts, such as Samson Mow, who ridiculed the “crypto-anarchist” label.
Max Keiser, a well-known Bitcoin advocate, commented on October 23, “The recent comments attacking self-custody demonstrate a regressive tendency to favor the legacy, centralized banking crooks that Bitcoin fixes.”
Self-Custody Risks and Challenges
Pascal Gauthier, the CEO of hardware wallet manufacturer Ledger, stated on October 23, “There is no crypto without self-custody, so it’s a bit of a moot point if all coins go to an ETF or an exchange,” while promoting his products at a blockchain event in Dubai.
However, it's worth noting that self-custody of cryptocurrencies is not without its risks. Ledger itself was hacked in 2020, leading to a significant data breach. The personal details of hundreds of thousands of Ledger customers were sold on the dark web, resulting in an ongoing wave of phishing attacks.
Bottom Line
The debate over self-custody of Bitcoin and other cryptocurrencies is a complex one, with strong arguments on both sides. While some argue for the security and control that self-custody provides, others point to the risks and potential for loss. What are your thoughts on this issue? Do you believe that self-custody is the future of cryptocurrency, or do you think that large financial institutions should play a role in safeguarding these digital assets? Share your thoughts with your friends and consider signing up for the Daily Briefing, delivered every day at 6pm.
