Vitalik Buterin Slams Michael Saylor’s Push for Institutional Bitcoin Custody

Vitalik Buterin has criticized Michael Saylor’s recent proposal that large financial institutions should handle Bitcoin custody, arguing it undermines the decentralized nature of cryptocurrencies.

Buterin labeled Saylor’s stance as “batshit insane” and warned it could lead to regulatory capture, jeopardizing Bitcoin’s core principles.

Previously an advocate for self-custody, Saylor shifted his position after the FTX collapse, now asserting that institutional custody is safer and dismissing concerns about government seizure as paranoia.

This change has drawn backlash from the Bitcoin community, including Jameson Lopp, who cautioned against the risks of centralizing Bitcoin custody and emphasized the importance of self-custody for network governance.

Critics like Simon Dixon and John Carvalho also raised concerns that Saylor’s view aligns with MicroStrategy’s strategy to become a Bitcoin bank, potentially reducing Bitcoin to just an investment vehicle.

Despite the criticism, Saylor remains optimistic about Bitcoin’s future, forecasting a value of $13 million per coin by 2045, while MicroStrategy holds over 252,000 BTC, making it the largest corporate holder.