Michael Saylor, the CEO of MicroStrategy, has clarified his stance on Bitcoin custody after facing significant criticism from the crypto community for suggesting the use of "too big to fail" banks.
Saylor initially proposed that Bitcoin holders should rely on banks for custody to reduce the risk of asset seizure by regulatory authorities. However, this suggestion sparked outrage among many who believe that self-custody is a fundamental right for crypto holders.
To address the concerns, Saylor stated that he supports both self-custody and institutional custody, emphasizing that individuals and institutions should have the freedom to choose how they manage their crypto assets. He argued that Bitcoin benefits from all forms of investment and that the choice of custody method is a personal one.
Saylor's comments have drawn sharp criticism from prominent figures in the crypto community. Vitalik Buterin, co-founder of Ethereum, labeled Saylor's proposal as "batshit insane," arguing that it contradicts the decentralized ethos of crypto. Erik Voorhees, founder of ShapeShift, also condemned Saylor's dismissal of self-custody, stating that it undermines a core safeguard against centralization and corruption.
MicroStrategy's Bitcoin Bank Ambitions
Despite the controversy surrounding his custody comments, Saylor remains committed to MicroStrategy's goal of becoming the leading Bitcoin bank. The company has accumulated a substantial Bitcoin portfolio and aims to offer a comprehensive suite of Bitcoin-based financial products.
Saylor believes that this approach will allow MicroStrategy to dominate the market and potentially reach a valuation of up to $1 trillion as Bitcoin's value increases over time.