Michael Saylor, the CEO of MicroStrategy and one of the most vocal advocates for Bitcoin, recently found himself at the center of a heated debate within the Bitcoin community regarding the role of self-custody in BTC ownership. His initial comments, which were interpreted by many as downplaying the importance of self-custody, sparked a significant backlash from prominent figures in the Bitcoin space. There was a sigh of relief from many when in a follow-up statement on Twitter, Saylor clarified his position, reaffirming his support for self-custody but also defending the right of individuals and institutions to choose the form of custody that best suits their needs.
Saylor’s original remarks, in which he seemingly dismissed self-custody advocates as “paranoid crypto anarchists,” were met with swift criticism from key figures in the Bitcoin community. The core issue lies in the perception that Saylor, who has been a leading voice for institutional Bitcoin adoption, was aligning more with traditional financial systems and centralized custody solutions. Critics saw this as a betrayal of Bitcoin’s fundamental ethos of decentralization, individual sovereignty, and financial freedom.
Erik Voorhees, a staunch advocate of decentralized finance, was one of the first to call out Saylor’s comments. Voorhees argued that self-custody is “the entire point” of Bitcoin, emphasizing that Bitcoin’s defining attributes, such as decentralization and censorship resistance, stem from the ability of users to hold their own private keys. While Voorhees acknowledged that not every Bitcoin holder needs to self-custody all the time, he stressed that knowing how to do so is crucial. For him, self-custody acts as a safeguard against centralization and the corruption that could arise from relying too heavily on custodians.
Others, such as Jameson Lopp, provided historical context to bolster the argument for self-custody. Lopp referenced Executive Order 6102, issued by President Roosevelt in 1933, which mandated the confiscation of privately held gold in the United States. He pointed out that most of the gold confiscated at the time was held in financial institutions on behalf of clients, while those who kept their gold in self-custody were able to avoid government seizure.
Amid the uproar, Jack Mallers, founder of Strike, took a more nuanced approach, addressing both sides of the debate. Mallers acknowledged that in any free market, especially one as revolutionary as Bitcoin, differing opinions are natural and necessary. While he expressed his admiration for Saylor as a friend, Mallers emphasized that Bitcoin is ultimately about freedom. The freedom to choose how one interacts with the network and the freedom to protect one’s assets. He maintained that self-custody represents this fundamental freedom, but also acknowledged that not everyone would opt for self-custody in every situation.
Other critics were less forgiving. Joel Valenzuela, a business developer for Dash Pay, accused Saylor of siding with centralized institutions and even government control, calling him out as a “profit-driven scammer” for dismissing self-custody advocates. Valenzuela’s tweet was harsh, implying that anyone who continued to support Saylor after his remarks, or remained silent on the matter, was complicit in undermining Bitcoin’s core values.
In response to the mounting criticism, Saylor took to social media to clarify his stance. He stated the following: “I support self-custody for those willing & able, the right to self-custody for all, and freedom to choose the form of custody & custodian for individuals & institutions globally.” He reiterated that Bitcoin benefits from all. All types of investment, be it by individuals using self-custody or institutions using third-party custodians. He emphasized that the Bitcoin ecosystem should welcome everyone, regardless of how they choose to secure their holdings.
Robert Baggs, a podcaster, expressed alignment with Saylor’s perspective, suggesting that the CEO’s comments reflect a realistic approach. Baggs highlighted the challenge of entrusting family members with self-custody, implying that while self-custody is ideal, it might not be practical for everyone. He sees Saylor’s comments as encouraging responsibility and choice, suggesting that self-custody might not suit every user’s needs.
Michael Leonardi took a firmer stance on the importance of self-custody, acknowledging Saylor’s support while reiterating that self-custody is integral to Bitcoin’s value proposition. Leonardi argued that without the option for self-custody, Bitcoin would lose a substantial part of its appeal and worth.
Meanwhile, Adam Simecka responded to Saylor’s post with an enthusiastic “He’s Back!” A reflection of relief among some Bitcoin supporters who may have felt that Saylor’s recent remarks downplaying self-custody were a departure from his usual support of Bitcoin’s core principles.
Finally, the Bitcoin Decentralized & P2P account signaled that Saylor’s clarification had been noted by the community, simply captioning his statement with “Clarification Out”. Saylor’s reaffirmation of self-custody as one of many valid options reflects a broader perspective on Bitcoin’s ecosystem, for individual freedom of choice.
Saylor’s clarification highlights the ongoing tension within the Bitcoin community between maintaining Bitcoin’s decentralized, self-sovereign principles and embracing its growing institutional adoption. While institutional involvement brings capital and legitimacy to the cryptocurrency, many Bitcoin purists worry that increased reliance on centralized custodians could erode the very freedoms Bitcoin was designed to protect. Saylor has since posted more about self-custody signalling to the community that this is a matter he still understands and cares about.
For many in the Bitcoin space, the ability to self-custody is not just a technical feature but a political statement. Bitcoin was born from a desire to create a decentralized financial system free from government control and corporate intermediaries. Self-custody allows individuals to fully exercise their financial independence, ensuring that their Bitcoin is immune from seizure or censorship. By dismissing self-custody advocates, however unintentionally, Saylor’s comments touched on a deeply ingrained fear within the community. That Bitcoin could be co-opted by the very forces it was designed to resist.
Despite the controversy, Saylor’s clarification brings the conversation back to the core principle of freedom of choice. As he noted, Bitcoin allows individuals and institutions alike to decide how they want to manage their holdings, whether through self-custody or trusted custodians. This flexibility, Saylor argues, is one of Bitcoin’s strengths. It can be all things to all people, from a decentralized tool of financial freedom to a secure investment asset for institutions.
In the end, the debate surrounding self-custody is a reflection of Bitcoin’s growing pains as it transitions from a niche technology embraced by early adopters to a mainstream financial asset. As Bitcoin continues to evolve, discussions like this one are likely to persist, with varying opinions on what Bitcoin should be and how it should be used. However, one thing is clear: the principles of freedom, sovereignty, and individual choice remain at the heart of Bitcoin. Even as its role in the global financial system expands right now.
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- Lucy Walker covers finance, health and beauty since 2014. She has been writing for various online publications.
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