The post Could Michael Saylor’s Shift Towards Institutional Custody Change Bitcoin’s Perception Amid Community Backlash? appeared on BitcoinEthereumNews.com.

MicroStrategy CEO Michael Saylor’s recent shift in perspective on Bitcoin custodianship has stirred considerable debate within the cryptocurrency community. Saylor dismisses fears of government seizure of Bitcoin as unfounded, advocating instead for institutional custody as a safer alternative. “The risk of seizure increases for those who reject regulation,” he stated, highlighting the importance of legal compliance for Bitcoin holders. In a surprising turn, Michael Saylor argues for institutional custodianship of Bitcoin, sparking backlash from the crypto community over the fundamental principles of self-custody and decentralization. Saylor’s New Stance on Custodianship Raises Eyebrows Recently, Michael Saylor expressed his opinion on the necessity of custodianship through established financial institutions rather than self-custody, a stance that is contrary to the traditional Bitcoin ethos. During an episode of the ‘Markets with Madison’ podcast, he referred to the concerns of “paranoid crypto-anarchists” regarding potential government seizures of their digital assets as merely a trope. Saylor argued that unregulated entities that disregard government laws and obligations expose themselves to greater risks. Institutional Custodians vs. Self-Custody: A Major Shift in Philosophy According to Saylor, institutional custodians adhere to necessary legal and tax obligations which mitigate the likelihood of government intervention. His assertion emphasizes that Bitcoin holders would benefit more from trusting large financial institutions than attempting to manage self-custody methods like hardware wallets. He continued to stress that the majority of wealth is still deeply entrenched within the traditional financial system, suggesting that Bitcoin should likewise align with these structures for stability and security. Backlash from the Bitcoin Community Saylor’s comments have prompted significant backlash from prominent figures in the Bitcoin community. Many seasoned advocates are distraught with his apparent departure from core cypherpunk principles that emphasize self-custody as a cornerstone of cryptocurrency autonomy. Criticism from Industry Insiders Among the critiques, Sina G, co-founder of 21st Capital,…

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Filed under: News - @ October 22, 2024 10:18 pm