Is Michael Saylor, the former CEO of business intelligence firm MicroStrategy, turning his back on Bitcoin’s core principles? In a recent interview, Saylor said that Bitcoin holders have “nothing to lose” by placing their coins in large financial institutions. For many in the Bitcoin community, this advice conflicts with essential values like self-determination and financial freedom.
From Personal Wallets to Big Banks
Saylor’s comments have sparked quite some backlash, as he was once a strong advocate for self-custody. He often encouraged people to manage their own Bitcoin through hardware wallets. Now, he’s suggesting a different approach: trusting your Bitcoin to big banks, the so-called “too big to fail” institutions.
In the interview, Saylor argued that placing your digital assets with these banks is safe and even preferable. He believes that Bitcoin holders have “nothing to lose” by doing so, which has raised eyebrows because it seems to contradict his earlier stance on independence.
Why Is Saylor Advocating for Banks?
Saylor pointed out that banks might be a safer option than hardware wallets, a popular method for storing Bitcoin independently. He brushed off concerns about government interference, like the possibility of Bitcoin being seized, calling these fears unnecessary and overblown.
From his perspective, there’s a lot of fear circulating that isn’t based on reality. He argues that big banks, with their resources and security infrastructure, are in a better position to protect assets.
Does Saylor Have a Point?
If Saylor’s comments apply to large institutions (including ones like his own company), he might have a case. Non-crypto companies managing their Bitcoin internally face risks, as it requires training and trusting someone with security protocols. In such scenarios, outsourcing to a specialized firm that offers insurance and has a solid track record might make sense.
Bitcoin Bull Shares His Criticism
Not everyone agrees with Saylor’s new stance. Max Keiser, a well-known figure in the Bitcoin community, argues that Saylor is missing the point of what it means to be a Bitcoiner. He believes that trusting Bitcoin to large institutions, instead of self-custody, makes it more vulnerable to criminalization, seizure, and confiscation. He points out that even gold was seized, and it happened despite it being widely owned.
Keiser also thinks that greater adoption by big financial players could attract people who don’t truly understand Bitcoin, along with regulators who may not act in its best interest.
He stresses that self-custody is a critical part of being a Bitcoiner. In his view, “everyone should do everything they can to ensure that self-custody is not persecuted by any powerful entity.” Without self-custody, Bitcoin loses its most important qualities: being peer-to-peer, permissionless, and resistant to censorship. These attributes are essential for Bitcoin to have any real value. Keiser even goes so far as to call the persecution of self-custody a violation of human rights.
My take:
“Saylor's activities, along with those of Blackrock et al, do help Bitcoin to become a more legitimated, socially acceptable, and harder to outlaw instrument than if it were just a bunch of nobodies with no influence involved in holding it.”
– Nope: Greater adoption… https://t.co/IrUo5aBxOU
— Max Keiser (@maxkeiser) October 22, 2024
Where Does This Leave Us?
Saylor’s comments have reignited the debate about the best way to store Bitcoin. On one side, there’s the promise of security and ease by trusting big banks. On the other, there’s the long-standing principle of self-custody, which many believe is at the heart of what makes Bitcoin special.
As Michael Saylor says in his 21 Rules of Bitcoin, “Bitcoin is for everyone” regardless of your political color or anything, there is no-one that can tell you to have some or not. Ultimately, it’s up to each of us to decide where we stand. Do we prioritize convenience and security, or do we hold on to the ideals of independence and self-determination?
If you’d like to watch the entire interview, here is the video: