Vitalik Buterin calls Michael Saylor’s comments on Bitcoin ‘insane’

As a seasoned crypto investor with over two decades of experience navigating the digital frontier, I find myself torn between the pragmatism of Michael Saylor and the philosophical purity espoused by Vitalik Buterin on this matter.


Vitalik Buterin, a founder of Ethereum, expresses disagreement with Michael Saylor’s views on Bitcoin holders utilizing large banks for custody. In simpler terms, Buterin takes issue with Saylor’s stance that encourages crypto users to rely on traditional banking institutions to secure their Bitcoin.

In a recent post on X, Ethereum co-founder Vitalik Buterin has labeled Michael Saylor as “unconventionally bold” in response to comments made by him during an interview with Madison Reidy concerning Bitcoin (BTC). Buterin takes issue with Saylor’s stance, particularly where it appears he is advocating for a regulatory capture strategy towards the protection of cryptocurrencies.

According to Saylor, his argument suggests that if public entities, under regulation, possess digital assets, it may attract more interest from regulators and law enforcement agencies to invest in these institutions. However, there’s a risk of regulatory capture, which might ultimately enable large financial institutions to dominate Bitcoin.

Several other influential figures in the cryptocurrency world, such as Jameson Lopp, chief security officer at Bitcoin custody firm Casa, and Erik Voorhees, founder of ShapeShift, echoed Buterin’s viewpoint. They argued that relying on third-party custodians could lead to various undesirable consequences and is contrary to the decentralized essence of cryptocurrencies.

In the post, Buterin stated that there are numerous examples showing this approach may not succeed, and personally, he doesn’t believe that such an approach aligns with the essence of cryptocurrency.

It’s likely that I played a significant role in perpetuating the “mountain man” stereotype, a perspective I now view as outdated. In retrospect, snarky comments and AA have significantly altered the balance of opinions on this matter. As for @saylor’s comments, I can confidently say they are utterly irrational.

— vitalik.eth (@VitalikButerin) October 22, 2024

In his conversation with financial markets reporter Madison Reidy on October 21st, Saylor criticized individuals he referred to as “crypto-anarchists.” These are unregulated entities that refuse to acknowledge government authority, taxes, or reporting obligations. He expressed concern that these groups could potentially increase the likelihood of digital assets being confiscated.

Instead, Saylor proposed that Bitcoin owners might consider using “too-big-to-fail” banks, which have been designed to safeguard financial assets. This new stance seems to contrast with his earlier advocacy for personal custody within the cryptocurrency sector.

Self-custody means individuals control and protect their own assets, not banks or exchanges.

In a 2022 interview with Blockware, Saylor expressed that the majority of people, families, and small to medium enterprises tend to keep their assets using personal keys or a multi-signature arrangement, rather than depositing them in large financial institutions.

Saylor stated that he doesn’t believe it poses an issue; instead, he feels everyone should be capable of managing their own Bitcoin.

In their article, Blockware mentions that Saylor’s remarks were made about three weeks following the fall of FTX – an event that resulted in users losing billions of dollars in Bitcoin stored on the platform. This situation has since escalated into a prolonged legal argument.

Currently, MicroStrategy is in possession of approximately 252,220 Bitcoins, making it the biggest Bitcoin hoard among corporations. Additionally, it has been disclosed by Saylor himself that he personally owns over a billion dollars’ worth of Bitcoin, as of August 2024.

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2024-10-23 13:19