The post Michael Saylor Faces Backlash Over Supporting Institutional Bitcoin Custody appeared on BitcoinEthereumNews.com.

In a recent interview, Michael Saylor, executive chairman of Bitcoin development firm MicroStrategy, dismissed concerns about the potential for government seizure of Bitcoin. Addressing financial markets reporter Madison Reidy, Saylor labeled those worried about such scenarios as “paranoid crypto-anarchists” and asserted that transferring Bitcoin to institutional custody poses no significant risk. This stance has sparked a heated debate within the cryptocurrency community, with various stakeholders expressing differing viewpoints on the matter.   Background on Michael Saylor and MicroStrategy Michael Saylor’s Advocacy for Bitcoin Michael Saylor has been one of the most prominent advocates for Bitcoin in the corporate world. Under his leadership, MicroStrategy became one of the first publicly traded companies to adopt Bitcoin as its primary treasury reserve asset. Saylor has consistently emphasized the importance of Bitcoin as a store of value and a hedge against inflation, advocating for self-custody of Bitcoin to protect against potential risks, including government intervention. Shift in Custody Stance However, Saylor’s recent comments suggest a shift from his previous emphasis on self-custody towards a more institutional approach. This change aligns with MicroStrategy’s evolving business interests, particularly its potential venture into becoming a Bitcoin bank, which would necessitate institutional custody solutions.   Details of the Controversy Saylor’s Dismissal of Seizure Concerns In the interview with Madison Reidy, Saylor dismissed concerns about government seizure of Bitcoin, suggesting that institutional custody solutions are secure and pose no significant risk to Bitcoin holdings. By branding skeptics as “paranoid crypto-anarchists,” Saylor undermined the apprehensions some in the community have regarding regulatory overreach and potential government actions against large Bitcoin holdings. Community Backlash Saylor’s comments have not gone unnoticed. Sina, co-founder of 21st Capital, criticized Saylor’s stance, arguing that it reduces Bitcoin to merely an investment commodity rather than a decentralized store of value. Simon Dixon, an early Bitcoin investor,…

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Filed under: News - @ October 22, 2024 8:19 am