SUMMARY
- Vitalik Buterin described Michael Saylor’s remarks about regulated bitcoin custody fears coming from “paranoid crypto-anarchists” as “batshit insane.”
- Buterin accused Saylor of advocating for a “regulatory capture” approach to cryptocurrency.
Ethereum co-founder Vitalik Buterin has criticized Michael Saylor’s recent comments regarding regulated bitcoin custody, claiming they reflect a misconception of the cryptocurrency’s essence. Saylor, the founder of MicroStrategy and a vocal advocate for bitcoin, proposed that concerns around regulated custody basically emerge from “paranoid crypto-anarchists.” In a recent interview with NZ Herald, he aimed to expose myths encompassing bitcoin, emphasizing its part as a predominant digital resource and a crucial store of value.
Buterin’s criticism follows noteworthy backlash from the bitcoin community, especially among self-custody advocates, who have labeled Saylor as “not a real bitcoiner.” He portrayed Saylor’s comments as “batshit insane” and accused him of endorsing a regulatory capture approach that may weaken the foundational standards of cryptocurrency. Buterin contended that history shows such techniques frequently fail to secure decentralized resources, which is opposite to what crypto represents.
Jameson Lopp, co-founder and CTO of Casa, moreover weighed in on the discussion. He cautioned that promoting trust in third-party custodians poses long-term risks for bitcoin holders. Lopp emphasized that self-custody is imperative for individual strengthening, network security, and development within the crypto space.
In his interview, Saylor advocated for holding bitcoin through regulated institutions like BlackRock, Fidelity, JPMorgan, and State Street. He claimed that utilizing these substances would improve security, decrease volatility, and lower the risk of government crackdowns compared to unregulated choices. Citing verifiable cases, Saylor argued that the concerns encompassing regulated custody are generally exaggerated, contending that these institutions provide greater stability for bitcoin holders.
Despite acknowledging self-custody, Saylor accepts that the fears related to regulated entities are overstated and that they eventually contribute to a more secure bitcoin ecosystem. Earlier this month, he uncovered MicroStrategy’s aspirations for a trillion-dollar valuation as part of its strategy to operate as a “bitcoin bank,” fortifying his commitment to advancing bitcoin’s institutional adoption.