MicroStrategy co-founder Michael Saylor has stirred controversy within the crypto community after making unexpected comments on Bitcoin self-custody during his recent appearance on the “Markets with Madison” podcast.
The prominent Bitcoin advocate criticized the self-custody movement and suggested that larger financial institutions like BlackRock could provide safer custody for Bitcoin than individuals could manage on their own.
“There’s no way that all the senators and all the congressmen are going to seize assets from Fidelity and BlackRock or Vanguard because that’s where all their retirement money is invested,”
Saylor argued, dismissing concerns about government seizure as “paranoid.” He contended that regulated entities could better protect Bitcoin by ensuring lawmakers and government agencies maintain vested interests in these institutions.
His remarks has, however, drew sharp criticism from influential figures in the crypto space, including Ethereum co-founder Vitalik Buterin, who labeled Saylor’s views as “batshit insane” and criticized him for endorsing regulatory capture. Buterin expressed concern that Saylor’s advocacy for Bitcoin custody by large, regulated institutions could lead to increased government control over the cryptocurrency space.
Saylor also downplayed historical concerns about government asset seizures, dismissing comparisons to the Great Depression when U.S. citizens were required to turn in their gold. He maintained that Bitcoin in custody is not at risk of being seized by the government any more than stocks like Apple are. However, critics argue that the government still has legal mechanisms to seize assets, whether through criminal proceedings or dormant accounts.
Notably, during the same podcast appearance, Saylor urged Apple to invest $100 billion in Bitcoin instead of pursuing a stock buyback, arguing this would significantly boost the company’s market value and growth potential.
The debate coincides with BlackRock CEO Larry Fink’s recent characterization of Bitcoin as a digital alternative to gold, reflecting a growing acceptance of cryptocurrency among major financial institutions. While Saylor views this institutional embrace as validation of his custody arguments, critics maintain that it contradicts Bitcoin’s founding principles of financial independence and decentralization.
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