Ethereum co-founder Vitalik Buterin has strongly criticized MicroStrategy chairman Michael Saylor for his recent comments regarding the custody of Bitcoin. In a post on the forum X, Buterin referred to Saylor as “batshit insane” for suggesting that crypto users should rely on big banks to hold their Bitcoin.
Saylor’s remarks came during an interview with Madison Reidy, where he expressed his support for regulated public entities holding digital assets. He argued that this approach would incentivize regulators and law enforcement to invest in these institutions, potentially leading to a situation where major financial institutions gain control over Bitcoin.
Buterin disagreed with Saylor’s stance, as he believes it goes against the decentralized nature of cryptocurrency. He was not alone in his criticism, as other prominent figures in the crypto industry, such as Jameson Lopp of Bitcoin custody firm Casa and Erik Voorhees, founder of ShapeShift, also expressed their concerns.
They argued that relying on third-party custodians could have negative consequences and undermine the principles of crypto. Buterin highlighted the potential risks, stating that there have been cases in the past where this strategy has failed.
In his interview, Saylor criticized what he referred to as “crypto-anarchists,” who operate outside of regulations and government oversight. He argued that these entities increase the risk of assets being seized. Instead, he suggested that Bitcoin holders should trust “too big to fail” banks, which are designed to be custodians of financial assets.
This position contradicts Saylor’s previous support for self-custody in the crypto space. Self-custody means individuals have control over and protect their own assets, rather than relying on banks or exchanges.
In a previous interview with Blockware, Saylor stated that most individuals and small to medium-sized companies prefer to hold their own private keys or engage in multi-signature arrangements, rather than entrusting their funds to large banks. He believed that everyone should have the ability to take custody of their own Bitcoin.
Blockware noted that Saylor’s comments came shortly after the collapse of FTX, where users lost billions of dollars worth of Bitcoin due to the platform’s failure. This incident led to a legal dispute that is still ongoing.
MicroStrategy currently holds 252,220 BTC, making it the largest Bitcoin reserve owned by a corporation. Saylor himself revealed that he personally owns over $1 billion worth of Bitcoin as of August 2024.
In conclusion, Buterin and other industry figures strongly disagree with Saylor’s suggestion that crypto users should rely on big banks for the custody of their Bitcoin. They argue that this approach goes against the decentralized nature of cryptocurrency and could have negative consequences. Saylor’s previous support for self-custody further adds to the contradiction in his recent remarks.