Bitcoin: Michael Saylor's Shocking Turnaround

Michael Saylor, a fervent advocate of Bitcoin, does not hide his passion for the flagship crypto. However, when it comes to safeguarding his Bitcoins, he seems to want to delegate this power to “too big to fail” financial institutions. A flip-flop that surprises, especially since Saylor had once championed personal custody of BTC to counter institutional abuses. Today, he proposes to holders to transfer their bitcoins to big banks rather than use hardware wallets.

Bitcoin and institutions: a marriage of convenience?

The very famous Michael Saylor recently stated that being wary of a state confiscation of bitcoins is a bit of crypto-anarchist paranoia. According to him, trusting large banks as custodians is preferable to personal custody.

“The fears of Bitcoin seizures by the government are myths,” he asserted.

However, this speech does not go unnoticed: several figures in the BTC community see this change as an attempt to relegate Bitcoin to the status of a speculative asset, rather than making it a medium of exchange.

To make matters worse, the decision comes after Saylor estimated that Bitcoin would reach 13 million dollars per coin by 2045. Yet, is such a perspective compatible with a crypto governed by institutions? Many doubt it, because:

• Institutions can accumulate excessive power;
• The risk of abuses becomes difficult to dismiss;
• Decentralization loses its essence.

The crypto community disappointed by Saylor’s turnaround

A wave of discontent is blowing among the most fervent Bitcoiners. Simon Dixon, author and OG Bitcoiner, suspects that Saylor’s speech may hide a MicroStrategy strategy aimed at turning the company into a sort of “BTC bank” to offer loans backed by this flagship crypto.

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

“Bitcoin anarchists should continue to help people liberate themselves from banks,” he exclaimed.

For his part, John Carvalho, CEO of Synonym, also criticizes this flip-flop: the idea of “Bitcoin as hope for all” seems less credible if the “crypto paranoids” are sidelined in favor of institutions.

Nevertheless, analysts believe that this message is primarily directed at large companies and investment funds, for whom personal custody remains impractical. The bet is bold, but it risks further dividing an already skeptical community.

Finally, it remains to be seen whether Saylor, still as controversial, will be able to reconcile his grandiose ambitions of Bitcoin and a trillion dollars with the founding principles of crypto.