Bitcoin Community Critiques Saylor’s Support for Major Banks

Michael Saylor, executive chairman of MicroStrategy, faces backlash for endorsing Bitcoin custodianship via large financial institutions rather than advocating for self-custody, a principle he previously championed.

Contradictory Remarks Spark Outrage

In a recent interview on October 21, Saylor suggested that Bitcoin holders should not hesitate to transfer their Bitcoin (BTC) to large, established banks, raising eyebrows among his supporters. This stance seems to contradict his earlier belief that self-custody prevents custodians from monopolizing power.

He referred to any fears regarding state-sanctioned Bitcoin seizures as paranoia, stating:

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

Interestingly, Saylor now recommends relying on “too big to fail” banks, which he believes are better positioned to act as custodians for financial assets, rather than using personal hardware wallets.

Reactions from the Bitcoin Community

Saylor’s comments have provoked criticism from various figures in the crypto community:

• Sina from 21st Capital argued that Saylor aims to diminish Bitcoin’s function as a currency.
• Simon Dixon, author and Bitcoin advocate, voiced concerns about Saylor’s statements undermining self-custody for MicroStrategy’s interests.
• John Carvalho, CEO of Synonym, expressed confusion about Saylor’s dismissal of “crypto-anarchists.”

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

In his past remarks, Saylor emphasized the importance of self-custody, stating:

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

Supporters Offer a Different Perspective

Not everyone in the Bitcoin community opposed Saylor’s latest remarks:

• Julian Figueroa suggested that Saylor’s comments were aimed at institutional investors rather than individuals, indicating that larger organizations may need to rely on custodial services.
• Mitchell Askew, a lead analyst at Blockware Solutions, noted Saylor’s readiness to face criticism to enhance Bitcoin’s reputation.

MicroStrategy’s Bitcoin Holdings

Under Saylor’s leadership, MicroStrategy has amassed a significant Bitcoin portfolio, currently holding 252,220 BTC valued at approximately $17 billion, according to Bitcoin Treasuries.

In his projections, Saylor estimated that Bitcoin might soar to $13 million per coin by 2045, reflecting his long-term bullish outlook on the asset.