Michael Saylor clarifies stance on Bitcoin custody amid community backlash

  • Michael Saylor reverses his stance after facing backlash for advocating big banks to oversee Bitcoin custody.
  • Concerns rise over Bitcoin’s centralization risk due to increasing institutional involvement.

As a seasoned researcher with years of experience navigating the often tumultuous world of cryptocurrencies, I can’t help but feel a sense of déjà vu while witnessing Michael Saylor’s recent U-turn on Bitcoin custody. It seems that even the most seasoned players in this space are not immune to the occasional misstep and backlash from the crypto community.


Following a significant amount of criticism from the cryptocurrency community, Michael Saylor, the founder of MicroStrategy, retracted his statements implying that major banks should manage Bitcoin (BTC) storage.

This stemmed from the ongoing concerns that such a move could lead to centralization and increase the risk of government intervention.

Michael Saylor steps back from his earlier stance

In response to these issues, Saylor made it clear where he stood, emphasizing that both individuals and organizations ought to possess the freedom to determine their own methods for storing and controlling their Bitcoin assets.

In a 23rd October post on X, Saylor stated, 

“I support self-custody for those willing & able, the right to self-custody for all, and freedom to choose the form of custody & custodian for individuals & institutions globally. #Bitcoin benefits from all forms of investment by all types of entities, and should welcome everyone.” 

Originally renowned for his Bitcoin approach and substantial MicroStrategy investments, Saylor now faces a challenge to uphold his reputation.

For the less informed, it’s worth mentioning that lately, Saylor has been encouraging Bitcoin owners to place their trust in massive financial institutions often labeled as “too big to fail.” His reasoning is that these financial giants have the necessary infrastructure to handle and safeguard substantial assets such as Bitcoin effectively.

This remark openly challenged Saylor’s position, with Ethereum co-founder Vitalik Buterin questioning the wisdom of relying on centralized institutions in a space built on decentralization. 

Buterin said, 

I’d be more than willing to express my opinion that Saylor’s remarks appear to me as incredibly unconventional, even bordering on irrational. What I understand from his arguments is that he advocates for a method of regulation where the regulatory bodies might end up controlling crypto themselves.

Mixed community reaction

Despite his attempts to resolve the recent controversy, Saylor’s image seems to have taken a hit. 

Remarking on the same, a crypto analyst pointed out, 

Michael Saylor clarifies stance on Bitcoin custody amid community backlash

Adding to the fray was another X user Joel Valenzuela who said, 

“Capitulation. But you showed your true colors.”

It’s clear that the recent events have sparked doubts about whether his previously strong support for Bitcoin can be completely restored.

However many came in support of Saylor.

Read More

2024-10-24 15:03