Michael Saylor's Bitcoin custodianship comments stir controversy, Vitalik: This is not the purpose of cryptocurrency's existence

Bitcoin loyalist and MicroStrategy founder Michael Saylor recently faced harsh criticism for suggesting to custody Bitcoin through financial institutions like BlackRock. Even Ethereum founder Vitalik couldn't help but speak out, stating that such strategies have a history of failure and go against the purpose of cryptocurrencies.

Saylor Strikes Again!

Michael Saylor, the founder of MicroStrategy, often promotes the value of Bitcoin in the media and has transformed MicroStrategy into a Bitcoin development company. He emphasizes that buying MicroStrategy is better than buying Bitcoin, even going as far as saying that the ultimate goal of MicroStrategy is to become a trillion-dollar Bitcoin bank.

The Endgame of MicroStrategy: Becoming a Trillion-Dollar Bitcoin Bank

During an interview with financial journalist Madison Reidy on October 21st, Saylor discussed various issues related to Bitcoin. When asked about the custody of Bitcoin, Michael Saylor believes that Bitcoin custody by regulated public institutions such as BlackRock, Fidelity, JP Morgan, and State Street Bank is safer than custody by unregulated private institutions. He argues that these public institutions are protected by law and regulations, which can reduce volatility and risk of loss, and make it more socially acceptable.

When questioned whether the U.S. government might confiscate Bitcoin holdings similar to the 1933 gold confiscation, depriving Bitcoin holders of their self-custody rights, Saylor expressed that there is currently no equivalent of a "gold standard" for a "Bitcoin standard." Therefore, he believes there is no need to worry excessively, and those who think that governments might approve the confiscation of Bitcoin are mostly "paranoid crypto-anarchists."

Vitalik: This is not the Purpose of Cryptocurrency

Saylor's comments have sparked numerous debates in the community, even prompting Ethereum founder Vitalik to speak out. Vitalik believes that Saylor's statements are too extreme, as Saylor seems to advocate for regulatory measures to protect cryptocurrency, which has a history of many failed attempts and is not the purpose of cryptocurrency.

Saylor: Bitcoin Should Welcome All Types of Investors

In fact, some believe that Saylor's remarks are simply aimed at promoting Bitcoin, as the entry of traditional finance has allowed many who do not understand or dare to touch cryptocurrency to become familiar with or invest in Bitcoin through channels they are more accustomed to. When mentioning large institutions like BlackRock, Saylor compared them to small exchanges run by only a few people overseas, emphasizing that large institutions are subject to government regulation, and politicians' retirement funds are also invested in them, naturally protecting these institutions from asset seizures. Referring to those "paranoid crypto-anarchists," Saylor mentioned the many conspiracy theories circulating on the internet, believing that if people are afraid of everything, they cannot enjoy the progress brought by technology. As a faithful believer in Bitcoin, Saylor continues to promote the benefits of Bitcoin, but it is also likely that he selfishly hopes that those interested in buying Bitcoin will choose to buy MicroStrategy instead.

Saylor also spread the message of Bitcoin with love this morning using a rose emoji and stated:

I support those who are willing and able to self-custody, everyone has the right to self-custody or choose institutional custody. Bitcoin benefits from various forms of investment by all types of entities and should welcome everyone.