MicroStrategy Chairman and Bitcoin maxi Michael Saylor has come out to clear the air amid the backlash and widespread criticism he has received following his self-custody custody comments.
In a Wednesday tweet, the MicroStrategy co-founder noted that he supports self-custody. For context, self-custody, popularly known in crypto, involves taking full responsibility for one’s asset by storing it in a cold wallet.
Saylor Maintains Everyone Has the Freedom to Choose Custody
While reiterating his long-standing support for self-custody, he noted that it was for anyone “willing and able” to do so. By that, he implied that everyone was free to choose either self-custody or handing their assets to a qualified custodian.
Furthermore, he added that Bitcoin has benefitted from all forms of investment. As a result, crypto enthusiasts should welcome all forms of business venture that would improve the adoption of the premier crypto asset.
Notably, his comments came after crypto OGs like Ethereum co-founder Vitalik Buterin criticized his self-custody remarks in a Markets with Madison interview. Buterin said Saylor’s view on custody was “batshit insane,” arguing that he encouraged regulatory capture to protect Bitcoin.
For context, Saylor called those encouraging self-custody “paranoid crypto-anarchists,” noting they used the fear scheme to sell their products and get rich off crypto investors. The MicroStrategy chairman further stated that the myth that the concentration of Bitcoin holdings among large institutions would increase the chances of seizure, as seen in gold, was converse.
Analyst Says Saylor Was Right
Market analyst James Van Straten has agreed with Saylor’s view on the importance of institutional investors getting largely involved with Bitcoin. In a tweet, Straten stated that although he advocates for self-custody, the concept will not drive the adoption of the crypto sector.
$MSTR are positioning themselves as a #Bitcoin bank nothing more nothing less. Which is what Hal FIney predicted back in 2010.
Saylor and $MSTR are an important cog in terms of #Bitcoin adoption. Even though I advocate for self-custody, that's not what is going to drive… https://t.co/0i6XkYZaZi pic.twitter.com/THjXTb3jOg
— James Van Straten (@btcjvs) October 21, 2024
The analyst shares Saylor’s thoughts that Bitcoin needs traditional financial systems, as a bunch of the global market money is situated there. He noted that the immense contribution of the Bitcoin spot exchange-traded funds in the crypto sector proves how much the industry needs these big financial players.
Notably, Straten also applauded Saylor and MicroStrategy’s ploy to become a Bitcoin bank, citing comments from Hal Finey, one of the premier asset’s early contributors.
Finey noted that a Bitcoin-backed secondary system, which will be an intermediary between financial institutions and Bitcoin, would be paramount to Bitcoin’s ultimate goal of becoming a “high-powered money.”
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