Reactions Continue to Mount Against Michael Saylor's Centralized Cryptocurrency Approach

Ethereum co-founder Vitalik Buterin criticized MicroStrategy founder Michael Saylor's controversial remarks in the crypto world. Saylor's view that Bitcoin is safer when held by institutional entities has sparked reactions, particularly from proponents of self-custody within the crypto community. In a recent interview, Saylor argued that large institutions holding Bitcoin contribute to its stability and that using regulated assets increases security. However, Buterin countered that Saylor's viewpoint contradicts the principle of avoiding centralization in cryptocurrencies.

Buterin emphasized that "user custodianship is crucial for protecting Bitcoin from centralization." He highlighted the importance of maintaining the decentralized foundation of cryptocurrencies, cautioning that reliance on institutional players could threaten Bitcoin's integrity in the long run. Buterin further noted that self-custody plays a critical role in long-term security, referencing insights from Jameson Lopp, who asserted that trust in third-party custodians could weaken both individual and network-wide security. In this context, the trend of Bitcoin self-custody should be preserved to maintain the decentralized nature of assets in the future.

Michael Saylor, a Bitcoin advocate, argued that the cryptocurrency poses no seizure risk from government authorities and claimed that custody by regulated assets is safer. He defended his stance by comparing it to the policy of gold confiscation from the public during the 1930s. Nonetheless, many in the crypto community disagreed with Saylor's perspective. Vitalik Buterin pointed out that this approach contradicts the nature of cryptocurrencies and promotes centralization. He further stated that the proposed institutional custody model could violate the principle of decentralization, which is fundamental to cryptocurrencies.