According to a report by Cointelegraph, Michael Saylor, the CEO of MicroStrategy, a US-listed company known for holding a large amount of Bitcoin, has recently faced criticism for his latest comments. He suggested that Bitcoin should be entrusted to “too big to fail” financial institutions for custody, instead of using the self-custody services he previously advocated.
In an interview with financial market journalist Madison Reidy on October 21st, Michael Saylor stated that there would be no loss for Bitcoin holders to transfer their Bitcoin to institutions. Michael Saylor is considered a supporter of Bitcoin, and this statement is clearly contradictory to his previous position of supporting self-custody of cryptocurrencies. Shortly after the collapse of FTX in November 2022, Michael Saylor claimed that self-custody of Bitcoin could prevent powerful custodians from becoming corrupt, stating that “in a system without self-custody, custodians accumulate too much power, which can then be abused. If you cannot self-custody your Bitcoin, you cannot establish a decentralized network.”
When asked if the US government could potentially strip Bitcoin holders of their self-custody rights, similar to the confiscation of gold in 1933, Michael Saylor believes that anyone concerned about such a situation is a “paranoid cryptocurrency anarchist.” He added that there is a lot of unnecessary fear.
He further suggested that instead of relying on hardware wallets, it is better to rely on “too big to fail” banks, which are “designed to be custodians of financial assets.”
Michael Saylor’s apparent shift in his stance on self-custody has drawn strong criticism from many Bitcoin supporters. “Sina,” the founder of Bitcoin custody and security company 21st Capital, stated that “Michael Saylor’s goal is to downgrade Bitcoin to an investment toy and prevent its use as a currency.”
Simon Dixon, an OG Bitcoin supporter and author of “Bank to the Future,” speculated that Michael Saylor’s sudden weakening of the importance of self-custody is detrimental to MicroStrategy’s long-term plans. The company intends to transform into a Bitcoin bank and provide mortgage loans.
However, there are also some people who support Michael Saylor’s views. Julian Figueroa, the founder and host of “Get Based,” stated that Michael Saylor’s comments are aimed at institutions, not individuals. He said, “Institutions have never been and will never be anarchists. Small businesses and ordinary people can have hardware wallets and sovereignty, but institutions with more than 200 employees, pension funds, or wealth funds will need Bitcoin banks.”