Vitalik Buterin Calls Michael Saylor’s Bitcoin Views ‘Insane’[embed]https://www.youtube.com/watch?v=DevkAbG1mGc[/embed]

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    <p>The comments from a well-known executive at a Bitcoin development firm, urging major financial institutions to take custody of Bitcoin, <a href="https://www.dlnews.com/articles/snapshot/vitalik-buterin-slams-microstrategy-saylor-on-bitcoin-custody/" target="_blank" rel="noopener nofollow">disillusioned</a> the cryptocurrency community.</p>
    <p>MicroStrategy's CEO, Michael Saylor, has come under significant scrutiny after suggesting that it would be preferable for “too big to fail” banks to hold Bitcoin rather than opting for self-custody.</p>

    <h2>The Provocative Statement</h2>
    <p>During a podcast interview, Saylor discouraged investors and traders from considering Bitcoin self-custody and proposed the concept of custody through large financial institutions like banks.</p>
    <p>He contends that established financial institutions are better equipped to protect Bitcoin holders as they are specifically designed to secure financial assets.</p>
    <p></p>
    <p>In the same interview, Saylor dismissed the potential for government seizure of Bitcoin as a “trope,” arguing that the risk of confiscation is heightened when Bitcoin is handled by “a bunch of crypto-anarchists” who reject government authority and ignore tax and reporting regulations.</p>
    <p><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-333357" src="https://bitcoinist.com/wp-content/uploads/2024/10/A_9127a1.avif" alt="" width="800" height="450" srcset="https://bitcoinist.com/wp-content/uploads/2024/10/A_9127a1.avif 800w, https://bitcoinist.com/wp-content/uploads/2024/10/A_9127a1.avif?resize=640,360 640w, https://bitcoinist.com/wp-content/uploads/2024/10/A_9127a1.avif?resize=768,432 768w, https://bitcoinist.com/wp-content/uploads/2024/10/A_9127a1.avif?resize=750,422 750w" sizes="(max-width: 800px) 100vw, 800px"/></p>
    <pre style="text-align: center;">Vitalik Buterin was not pleased with Michael Saylor's comments on Bitcoin. Illustration: Darren Joseph; Photos: Shutterstock</pre>
    <p>Saylor explained that, in contrast to these “crypto-anarchists,” financial institutions adhere to legal and tax responsibilities, claiming that this reduces the likelihood of any government intervention.</p>
    <p>Numerous analysts in the cryptocurrency sphere were taken aback by <a href="https://www.bitdegree.org/crypto/news/vitalik-buterin-calls-michael-saylors-bitcoin-custody-suggestions-insane" target="_blank" rel="noopener nofollow">Saylor’s viewpoint</a>, and they find it hard to accept the rationale that the executive is advocating.</p>
    <p><img loading="lazy" decoding="async" class="aligncenter size-full" src="https://www.tradingview.com/x/22hqF0d8/" width="2475" height="1163"/></p>
    <pre style="text-align: center;">BTCUSD trading at $66,265 on the 24-hour chart: <a href="https://www.tradingview.com/chart/ajrdy9Lf/" target="_blank" rel="noopener nofollow">TradingView.com</a></pre>
    <h2>A ‘Batshit Insane’ Concept</h2>
    <p>Ethereum co-founder Vitalik Buterin criticized Saylor for his controversial take on Bitcoin custody, labeling the notion as <a href="https://protos.com/vitalik-buterin-batshit-michael-saylor-comments-not-what-crypto-is-about/" target="_blank" rel="noopener nofollow">‘batshit insane’.</a></p>
    <p>Buterin vehemently opposed the idea of banks holding custody of Bitcoin, arguing that Saylor’s remarks are outdated due to significant technological advancements that have completely transformed the “tradeoff space.”</p>
    <blockquote class="twitter-tweet">
        <p dir="ltr" lang="en">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 <a href="https://twitter.com/saylor?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">@saylor</a>‘s comments are batshit insane.</p>
        <p>He seems to be explicitly arguing for a…</p>
        <p>— vitalik.eth (@VitalikButerin) <a href="https://twitter.com/VitalikButerin/status/1848876323026178429?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">October 22, 2024</a></p>
    </blockquote>

    <p>The Ethereum co-founder asserts that the strategy promoted by Saylor, which is meant to safeguard cryptocurrency, is unlikely to succeed, emphasizing that it contradicts the very essence of what cryptocurrency represents.</p>
    <p>“There’s plenty of precedent for how this strategy can fail,” he remarked.</p>
    <h3>The Bitcoin Community Rejects the Idea</h3>
    <p>Advocates of Bitcoin, who firmly support self-custody, are skeptical about Saylor's reasoning for adopting Bitcoin custodianship through banks.</p>
    <p>Sina G, co-founder of 21st Capital, warned that this approach could diminish Bitcoin to an “investment pet rock” and cautioned that it may halt the cryptocurrency's use as an actual currency.</p>

    <p>Sina G described Saylor’s views as “spooky,” suggesting he serves as a mouthpiece for government and financial institutions.</p>
    <blockquote class="twitter-tweet">
        <p dir="ltr" lang="en">If you’re surprised by Saylor’s recent comments then you haven’t been paying attention. <a href="https://t.co/Tf7CDM4LqT" rel="nofollow" target="_blank">https://t.co/Tf7CDM4LqT</a> <a href="https://t.co/GTAr2oXjEC" rel="nofollow" target="_blank">pic.twitter.com/GTAr2oXjEC</a></p>
        <p>— Jameson Lopp (@lopp) <a href="https://twitter.com/lopp/status/1848318720541671586?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">October 21, 2024</a></p>
    </blockquote>

    <p>Jameson Lopp, Chief Security Officer at Casa HODL, noted that bank custody of Bitcoin could have long-term repercussions for the cryptocurrency sector.</p>
    <p>Lopp argued that centralizing digital currencies raises the risk of loss and confiscation, potentially alienating Bitcoin users due to governance issues involving trading forks and node operations.</p>
    <p>He stressed that self-custody is crucial for fortifying and enhancing the network, asserting that it is not merely a concern for individual holders.</p>
    <p><em>Featured image from Shutterstock, chart from TradingView</em></p>
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