MicroStrategy co-founder Michael Saylor faces backlash for his comments advocating for Bitcoin storage in major banks, contradicting his previous support for self-custody.

Saylor's New Views on Bitcoin Storage

In an interview with financial journalist Madison Reidy, Saylor stated that Bitcoin investors have nothing to fear when sending their BTC to regulated institutions for safekeeping. He further claimed that concerns over state-sanctioned Bitcoin seizure are exaggerated and characteristic of 'paranoid crypto-anarchists'.

Crypto Community Response

Critics accused Saylor of undermining the self-custody principle, which is crucial for many in the Web3 space. Simon Dixon, author of “Bank to the Future,” speculated that Saylor's stance benefits the future Bitcoin bank he aims to create. Dash business developer Joel Valenzuela voiced his disapproval on the X platform, noting that supporting such a stance harms the crypto community.

Previous Stances on Self-Custody

After the collapse of FTX in 2022, Saylor claimed that the ability to self-custody Bitcoin protects the network from manipulation by powerful custodians. In subsequent statements, he advised investors to memorize key phrases to defend their Bitcoin holdings from any encroachments.

Michael Saylor's recent comments have sparked controversy within the crypto community, highlighting the importance of self-custody and trust in traditional financial institutions.