Saylors disparaging remarks about self-custody provoke Bitcoin communitys ire
MicroStrategy CEO Michael Saylor has dismissed the idea of a government seizure of Bitcoin as a trope while advocating for custodianship through large financial institutions over self-custody.
In a recent appearance on the Markets with Madison podcast, Saylor addressed concerns from what he called paranoid crypto-anarchists who fear such seizures. He said such individuals often reject regulation, government authority, taxes, and reporting requirements, which increases the risk of seizure.
According to Saylor:
I think that when the Bitcoin is held by a bunch of crypto-anarchists who arent regulated entities who dont acknowledge government or dont acknowledge taxes or dont acknowledge reporting requirements that increases the risk of seizure.
He emphasized that institutional custodians, in contrast, adhere to legal and tax obligations, which he believes reduces the likelihood of government intervention.
Saylor further argued that instead of relying on self-custody methods like hardware wallets, Bitcoin holders would be better served by trusting large, established banks designed to secure financial assets.
He said:
You have an OG crypto community thats very hardcore about it, but if you look at where all the money is 99.9% of the money is actually in the traditional economy.
As a long-time Bitcoin supporter, Saylors comment surprised many in the community as it goes against the cypherpunk ethos at the heart of crypto. Bitcoin proponents often strongly advocate for self-custody due to the risks associated with centralized authorities and entities.
Bitcoin community slams Saylor
Saylors remarks sparked a significant backlash from key figures in the Bitcoin community.
Sina G, co-founder of Bitcoin-focused investment firm 21st Capital, criticized the stance, calling it spooky and accused Saylor of becoming a shill for the government and banking system.
Sina added:
Saylor is on a mission to relegate Bitcoin into an investment petrock and halt its usage as a currency.
Jack Mallers, the founder of Bitcoin Lightning Network payment platform Strike, expressed concern at Saylors u-turn, stating,
Calling self-custody crypto-anarchism oversimplifies what Bitcoin accomplishes. Its about freedom freedom of speech, property rights, and protecting your right to own whats yours. We must not dismiss it because freedom isnt promised it must be fought for and protected.
Bitcoin developer Jameson Lopp, co-founder and Chief Security Officer of CasaHODL, added that Saylors comments signal a broader divide. He noted that the remarks hint at the next battle for Bitcoins future, as those focused on institutional adoption dont seem concerned about improving the protocol or scaling the network because they dont prioritize self-custody.
Blockstream CEO Adam Back also commented on the issue by explaining that holding Bitcoin exchange-traded funds (ETFs) is similar to holding shares or a bank balance, which dont offer true asset protection.
According to Back, a court order can seize an ETF, unlike Bitcoin in self-custody, where courts must follow due process to demand asset handover. He noted:
Self-custody doesnt make people immune, it just change the onus so courts have to go through due process and get a judgement.
Back concluded that self-custody rebalances power toward individual rights by making it harder for governments or institutions to seize assets without proper legal procedures.
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Text source: CryptoSlate
