MicroStrategy’s Michael Saylor Supports Crypto Self-Custody After Backlash on Earlier Remarks

MicroStrategy founder and chairman Michael Saylor recently posted that he supports self-custody. Saylor believes individuals and institutions globally should be free to choose the form of custodian and custody for their assets.

These comments followed his earlier remarks endorsing regulated custody, which faced criticism from crypto community members, including Ethereum's Vitalik Buterin.

Michael Saylor Endorses Crypto Self-Custody

The issue of centralization and custody has become one of the most debatable topics as crypto gets more woven into traditional finance. Many believe self-custody promotes security and decentralization, giving users greater control of their assets.

In a post on X, staunch Bitcoin proponent Michael Saylor expressed his view regarding crypto self-custody. Saylor said he supports self-custody for anyone willing and able.

I support self-custody for those willing & able, the right to self-custody for all, and freedom to choose the form of custody & custodian for individuals & institutions globally. #Bitcoin benefits from all forms of investment by all types of entities, and should welcome everyone.

- Michael Saylor (@saylor) October 23, 2024

He also mentioned that he supports the right self-custody for all." The MicroStrategy founder believes people should be free to choose the type of custody and custodian they want.

I support self-custody for those willing and able, the right self-custody for all, and freedom to choose the form of custody and custodian for individuals and institutions globally," Saylor wrote in his X post.

These remarks come after Saylor's initial comment regarding crypto custody in a recent interview.

During a chat with Madison Ready, a senior correspondent at NZ Herald, Saylor said holding Bitcoin through regulated entities like Fidelity and BlackRock was best. He believed this was a safer option with less risk of loss and volatility.

Saylor said only paranoid crypto anarchists" worry that this option could result in increased government control and centralization. He dismissed such concerns, saying they were exaggerated.

Saylor's Earliest Remarks Attract Backlash from the Crypto Community

Saylor's remarks sparked criticism from notable community figureheads, including Ethereum co-founder Vitalik Buterin.

Buterin condemned Saylor's viewpoint, describing it as insane. According to the Ethereum co-founder, Saylor advocated for a regulatory capture approach to protecting crypto."

I probably did more than most to spread the "mountain man" trope (btw I consider those remarks of mine outdated; snarks and AA changed the tradeoff space completely), and I'll happily say that I think @saylor's comments are batshit insane.

He seems to be explicitly arguing for a...

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

He said there were several instances of how the strategy could fail, emphasizing that such an approach defeats the ethos of crypto.

Meanwhile, Buterin's remarks responded to a comment by Jameson Lopp, co-founder and CTO of Casa.Loppassertedthat self-custody is more than being a paranoid mountain man."

According to Lopp, self-custody is vital for maintaining decentralization, preserving governance participation, enhancing network security, and fostering innovation. He also believes it will help scale the crypto networks without relying on third parties.

Another notable Bitcoin proponent, Max Kieser, also criticized Saylor's remarks. Kieser described Saylor's viewpoint as an attack on self-custody. He said it reflects a backward tendency to favor the centralized banking legacy and defects that crypto is trying to correct.

To address his previous remarks, Saylor said that Bitcoin benefits from various investments from various entities. So, it should welcome everyone. He believes it shouldn't be lopsided; everyone should be free to choose what form of custody they want to embrace.

The talks about self-custody became prominent as traditional bitcoin-based investment products like spot BTC ETFs gained more popularity. Since their launch in January, the 12 US spot bitcoin ETFs have received inflows exceeding $20 million.

Bloomberg's senior ETF analyst Eric Balchunas described this as the most challenging milestone in the ETF landscape.

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