Bitcoiners slam Saylor for throwing weight behind ‘too big to fail’ banks

As a seasoned crypto investor with over a decade of experience navigating this wild west of digital assets, I find myself both intrigued and perplexed by Michael Saylor’s latest comments advocating for Bitcoin custodianship through traditional financial institutions.


Critics have heavily criticized MicroStrategy’s executive chairman, Michael Saylor, for his recent suggestions that individuals should entrust their Bitcoins to large, established financial institutions instead of self-custody, a stance he previously supported.

In a recent interview on October 21, Saylor made a contentious statement suggesting that Bitcoin holders might not be at a disadvantage if they were to move their Bitcoin to institutional entities, as reported by financial markets correspondent Madison Reidy.

Saylor is perceived as a strong advocate for Bitcoin, yet his recent statement seems to stand out against his earlier backing of individuals holding their own cryptocurrency assets.

If someone believes that the U.S. government could seize Bitcoin, they are seen as an overly cautious “crypto-anarchist,” according to Saylor. This is because he doubts that the government would take away individuals’ ability to self-custody their Bitcoins in a manner similar to how owning gold was outlawed in 1933.

“It’s a myth and a trope that goes on over and over again,” Saylor said. 

“There’s just a lot of fear that’s unnecessary.”

Instead of depending on hardware wallets, Saylor advocates for trusting “large and robust” banks designed to safeguard financial assets.

Bitcoiners slam Saylor for throwing weight behind ‘too big to fail’ banks

His apparent U-turn on self-custody wasn’t received well by many Bitcoiners.

According to Sina, the founder of Bitcoin custodial and security company 21st Capital, “Saylor is aiming to move Bitcoin into a type of investment stone and stop its function as a medium of exchange.

Michael Saylor, a prominent figure and influential voice in the Bitcoin community, argues:

— Joel Valenzuela (@TheDesertLynx) October 21, 2024

In another perspective, Simon Dixon, an early Bitcoiner and author of “Bank to the Future,” suggested that Saylor might be undervaluing the significance of self-custody, as it doesn’t align with MicroStrategy’s long-term goal of becoming a Bitcoin bank and offering collateralized loans.

Dixon stated that Bitcoin advocates should continue aiding individuals in escaping control by financial institutions, administrations, and central banks through the use of Bitcoin.

John Carvalho, the CEO of Bitcoin payment company Synonym, also voiced his disapproval regarding Saylor’s shift in stance. He underscored that previously, Saylor had asserted that “Bitcoin signifies hope” for all.

“I am curious what exactly that means if we must discount the ‘paranoid crypto anarchists’ and their ‘tropes’ as salesmen with ulterior motives.”

Following the collapse of FTX in November 2022, Saylor asserted that self-custody of Bitcoin shields the network from manipulation by dominant custodians.

“In systems where there is no self-custody, the custodians accumulate too much power and then they can abuse that power.”

In simpler terms, Saylor emphasizes that if you don’t have control over your own digital currency, it becomes impossible to create a truly decentralized system.

Saylor has suggested that individuals should commit their 12-word recovery phrase to memory, and he advises them to express strong disapproval or even hostility if others attempt to bother or harass him.

You can tell people to go ‘f*ck themselves’ if they come for you #bitcoin

– Michael saylor

— Arsen @ Relai (@satoshibaggins) August 16, 2023

Others were more supportive of Saylor’s take.

According to Julian Figueroa, the creator and presenter of “Get Based,” it appears that Saylor’s communication was primarily aimed at academic institutions rather than individual people.

“Institutions are not and never will be anarchists. Small businesses and plebs can have hardware wallets and sovereignty [but] 200+ employee institutions, pensions or wealth funds will need bitcoin banks.”

Head analyst at Bitcoin mining firm Blockware Solutions Mitchell Askew added that Saylor was willing to “stomach criticism” to make Bitcoin “less sketchy.”

Bitcoiners slam Saylor for throwing weight behind ‘too big to fail’ banks

According to Bitcoin Treasuries data, Saylor Corporation holds the most significant amount of Bitcoin among corporations, totaling approximately 252,220 BTC, which is valued at around $17 billion.

In late June, Saylor estimated Bitcoin would reach $13 million per coin by 2045.

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2024-10-22 04:37