Michael Saylor Faces Backlash For Backing ''Too Big To Fail'' Banks Over Self-Custody For Bitcoin

Michael Saylor Faces Backlash For Backing ”Too Big To Fail” Banks Over Self-Custody For Bitcoin

Updated: 22 October 2024

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MicroStrategy co-founder Michael Saylor came under fire after recommending that Bitcoin should be custodied through “too big to fail” banks, a shift from his earlier stance favoring self-custody.

In an Oct. 21 interview with financial markets reporter Madison Reidy, Saylor indicated that Bitcoin investors have nothing to lose by sending their BTC to regulated institutions for safe keeping.

An investor who thinks that state-sanctioned Bitcoin seizure is possible is a “paranoid crypto-anarchist,” he said.

Michael Saylor Comments Slammed By Crypto Community

During the interview, Saylor was asked whether the government will someday strip Bitcoin holders of their self-custody rights, similar to what it did in 1933 with gold.

“It’s a myth and a trope that goes on over and over again,” he replied, before adding that there is just a lot of “unnecessary” fear in the market.

Michael Saylor, the leading voice and influencer on Bitcoin by a mile, says:

💀You don't need to self-custody
💀You should trust government and institutions
💀Government would never confiscate your custodial Bitcoin
💀You're a "paranoid crypto anarachist, and a profit-driven… https://t.co/mRdgUPgC5n

— Joel Valenzuela (@TheDesertLynx) October 21, 2024

Critics quickly accused him of undermining self-custody, a core principle for many in the Web3 space.

Simon Dixon, the author of “Bank to the Future,” speculated that Saylor is undermining crypto self-custody because it benefits the Bitcoin bank that the MicroStrategy executive is trying to create.

“Anyone in Bitcoin who continues to support this bad actor, or who remains conveniently silent on this, can safely be called an enabler of this travesty,” said Dash business developer Joel Valenzuela in an Oct. 21 X post.

BTC Self-Custody Prevents Powerful Custodians From Corrupting Bitcoin Network

Back in 2022, after the collapse of the now-defunct FTX, Saylor said that the ability to self-custody Bitcoin made it impossible for powerful custodians to corrupt the Bitcoin network.

You can tell people to go 'f*ck themselves' if they come for you #bitcoin

– Michael saylor pic.twitter.com/WMonJImx7K

— Arsen @ Relai (@satoshibaggins) August 16, 2023

A few months later, the MicroStrategy executive even recommended that investors memorize their 12-word seed phrase and defend themselves if anyone tries to come for their Bitcoin holdings.