Why Buterin Deems Saylor’s Bitcoin Custody Remarks ‘Outrageous’

Disagreement in Crypto Circles: Unpacking Buterin's Critique of Saylor's Stance on Self-Custody of Bitcoin

Why Buterin Deems Saylor's Bitcoin Custody Remarks 'Outrageous'

Key Points

Vitalik Buterin, co-founder of Ethereum, has recently voiced his disagreement with Michael Saylor’s comments on Bitcoin self-custody.

Saylor’s remarks were made during an interview where he was asked about the risks of centralization and government seizure associated with Bitcoin custody by large banks and third-party entities.

Saylor’s Controversial Comments

Saylor responded by expressing concern about Bitcoin being held by unregulated entities, which he believes increases the risk of seizure. His comments have sparked widespread criticism, with Buterin being one of the most vocal critics.

Buterin has described Saylor’s comments as “batshit insane”, accusing him of advocating for a regulatory capture approach to protecting crypto, which he believes is contrary to the principles of cryptocurrency.

Support for Self-Custody

Jameson Lopp, co-founder of Bitcoin self-custody platform Casa HODL, has also expressed his disagreement with Saylor. He argues that self-custody is not only important for individual Bitcoin holders but is also crucial for the continued strengthening and improvement of the entire network.

Samson Mow of JAN3com, an advisor for nation-state Bitcoin adoption, has also emphasized the risks associated with third-party custody.

Despite the criticism, Saylor has maintained his stance on Bitcoin custody, particularly for large firms entering the crypto market. In a 2022 interview, he advocated for third-party custody for large firms, citing their robust checks and balances.

However, the debate continues, with both sides presenting strong arguments. The potential risks of Bitcoin network centralization as more large firms join the crypto market remain a concern.

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