Michael Saylor Defends Self-Custody of Bitcoin
In a recent development, MicroStrategy chairman Michael Saylor has revisited earlier statements regarding the topic of self-custody in the cryptocurrency sphere. He emphasized that self-custody is an essential right that should be preserved for everyone.
Self-Custody as an Individual Right
Saylor expressed that the right to self-custody is vital for all individuals and institutions, advocating for everyone’s right to select their preferred custody options. He articulated:
“Bitcoin benefits from all forms of investment by all types of entities, and should welcome everyone.”
Industry Backlash and Reactions
His recent comments have sparked considerable debate, with prominent figures in the cryptocurrency community voicing their concerns. Notably, Jameson Lopp, co-founder of CasaHODL, countered Saylor’s views, stating that self-custody should not be associated with paranoia. He warned that Saylor’s remarks could lead to detrimental long-term effects by fostering absolute trust in third-party custodians.
Systemic Risks of Centralized Custody
Lopp articulated several risks linked to centralized custody in Bitcoin management, including:
- Heightened systemic risks due to concentration of Bitcoin in a few custodial entities
- Exclusion of Bitcoin holders from critical network governance activities, such as managing nodes
“Self-custody is not merely important to individual Bitcoin holders. It’s important for the continued strengthening and improvement of the entire network.”
Further Criticism from Crypto Leaders
Ethereum co-founder Vitalik Buterin also criticized Saylor’s stance, labeling it as “insane.” He cautioned that relying on regulated institutions like BlackRock and Fidelity could lead to a fragility that contradicts the core principles of cryptocurrency.
Support for Self-Custody
Notable Bitcoin advocates such as Jack Mallers and Adam Back have echoed the sentiment that self-custody is crucial for the financial autonomy that Bitcoin provides.
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Gino Matos
Gino Matos is a law school graduate and seasoned journalist with six years of experience focusing on the Brazilian blockchain ecosystem and decentralized finance.
