MicroStrategy's founder Michael Saylor faced intense backlash from the crypto community for suggesting that Bitcoin holders should trust large financial institutions for custody.

Saylor's Change of Heart

Previously, Saylor advocated for self-custody, especially after the FTX collapse in November 2022. However, in a recent interview, he advised users to trust their assets to banks 'too big to fail,' claiming this would ensure security against losses. He also dismissed concerns about governmental asset confiscation.

Community Reaction

Saylor's reversal sparked criticism among the community. Ethereum co-founder Vitalik Buterin publicly criticized his comments, calling the proposal 'batshit insane.' Sina, the founder of Bitcoin custody firm 21st Capital, declared that such an approach undermines Bitcoin's purpose as a currency.

Michael Saylor's Position

Despite the criticism, Saylor remains optimistic about Bitcoin's long-term value. Under his leadership, MicroStrategy became the largest corporate holder of Bitcoin with over 252,220 BTC. He previously predicted Bitcoin could reach $13 million per coin by 2045.

Michael Saylor’s new stance on Bitcoin custody has provoked criticism, highlighting ongoing debates about the role of major financial institutions in the crypto economy.