The words of a famous CEO of a Bitcoin development company, encouraging large financial institutions to hold Bitcoin, have disappointed the cryptocurrency community.
MicroStrategy CEO Michael Saylor is now at the center of strong criticism after saying that it would be better for Bitcoin to be kept in the custody of “too big to fail” banks than to hold them.
Oppositional Speech
Saylor, in a podcast interview, dissuaded investors and traders from Bitcoin’s path of commitment while putting forward the idea of ​​keeping money through large financial institutions like banks.
He believes that large and stable financial institutions can better serve Bitcoin holders because they are designed to protect financial assets.
In the said interview, Saylor pointed out the possibility of any government seizure of Bitcoin as a “trope”, saying that the risk of seizure increases when crypto is controlled by a “group of crypto-anarchists” who reject the authority of the government and do not. agree to taxes and reporting requirements.
Vitalik Buterin didn't like Michael Saylor's Bitcoin comments. Illustration: Darren Joseph; Photos: Shutterstock
He explained that unlike these “crypto-anarchists”, financial institutions follow legal and tax obligations, saying that it reduces the chances of any government intervention.
Many analysts in the cryptocurrency space were surprised by Saylor’s stance and found it hard to swallow the logic the executive was pushing.
BTCUSD trading at $66,265 on the 24-hour chart: TradingView.com
A ‘Batshit Insane’ Idea
Ethereum co-founder Vitalik Buterin criticized Saylor for his controversial idea of ​​Bitcoin storage, saying the idea is ‘batshit crazy’.
Buterin was critical of the banks holding the coin, saying that Saylor’s words are outdated because there have been many technological advances that have changed “the entire trading environment.”
I’ve probably done more than enough to spread the “mountain man” trope (btw I consider those words of mine outdated; snarks and AA changed the tradeoff entirely), and I’ll happily say so I think. @saylorBatshit lyrics are crazy.
He seems to be clearly contradicting himself…
— vitalik.eth (@VitalikButerin) October 22, 2024
The founder of Ethereum does not believe that Saylor’s approach aimed at protecting crypto will succeed, saying that this is not what cryptocurrency is all about.
“There are many examples of how this strategy can fail,” he added.
The Bitcoin Community Opposes The Idea
Bitcoin supporters, who are strong advocates of abstinence, do not buy into the logic and reasoning proposed by Saylor in accepting the custody of Bitcoin by banks.
21st Capital founder Sina G said the idea could put Bitcoin “on the investment petrock” and warned that it could lead to the suspension of crypto being used as a currency.
Sina G called Saylor’s opinion “scary”, seeing her as a mouthpiece for the government and financial institutions.
If you were surprised by Saylor’s latest comment then you haven’t been paying attention. pic.twitter.com/GTAr2oXjEC
— Jameson Lopp (@lopp) October 21, 2024
Jameson Lopp, Chief Security Officer at Casa HODL, said that BTC banking has long-term implications for the cryptocurrency space.
Lopp argued that centralizing digital currency increases the risk of loss and capture, suggesting the possibility that Bitcoin users may be excluded due to administrative tasks such as trading forks and active nodes.
He stressed that self-control is important to continue strengthening and improving the network and is not just a concern of individual owners.
Featured image from Shutterstock, chart from TradingView