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Sujit Kumar
Oct 23, 2024

Vitalik Buterin Criticizes Michael Saylor’s Stance on Bitcoin Custody

Vitalik Buterin Criticizes Michael Saylor
Ethereum co-founder Vitalik Buterin has voiced strong criticism against MicroStrategy Chairman Michael Saylor’s recent comments on Bitcoin custody. Saylor’s stance, which favors institutional custody of Bitcoin over self-custody, has stirred significant debate within the crypto community.

Saylor’s Push for Institutional Custody

In a recent interview with financial reporter Madison Reidy, Saylor suggested that Bitcoin holders should store their assets with "too big to fail" banks rather than relying on self-custody. He dismissed concerns about government seizures, such as the 1933 illegalization of gold holdings, labeling them as unfounded fears promoted by "paranoid crypto-anarchists." Saylor argued that large financial institutions are better equipped to safeguard Bitcoin, a position that has triggered backlash from advocates of decentralized finance and self-custody.

Vitalik Buterin’s Response

Vitalik Buterin openly criticized Saylor’s preference for institutional custody, accusing him of promoting a regulatory capture approach to Bitcoin’s future. Buterin noted that Saylor seems to believe regulated entities like BlackRock and Fidelity should hold crypto assets to secure political support. "For me, it’s not what crypto is about," Buterin stated, highlighting how this approach could lead to centralized control, counteracting the decentralized nature of cryptocurrencies.

The Debate on Self-Custody’s Importance

Jameson Lopp, Chief Security Officer at Casa HODL, also weighed in, outlining the risks of institutional custody. He warned that centralizing Bitcoin ownership in large institutions increases the risk of loss or seizure and reduces users' control over the network. Both Lopp and Buterin emphasized that self-custody is essential not only for individual Bitcoin holders but for the long-term health and decentralization of the entire network.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Vitalik Buterin Criticizes Michael Saylor’s Stance on Bitcoin Custody
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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