Vitalik Buterin called storing cryptocurrency in banks utter madness

Co-founder of Ethereum, Vitalik Buterin, has sharply criticized statements made by Michael Saylor, co-founder of MicroStrategy, regarding the storage of cryptocurrency in banks. Saylor has faced a wave of backlash following his recent interview on the podcast Markets with Madison.

Buterin labeled Saylor's assertion that advocates of self-custody for cryptocurrencies are paranoid and that assets should be bank-stored as "utter madness." He pointed out that such a stance promotes the storage of cryptocurrencies by major institutional players who have the backing of state structures, such as BlackRock.

“Saylor is clearly advocating for a regulatory capture approach to cryptocurrency protection… There are many examples of how this strategy can fail, and to me, it goes against the very essence of cryptocurrency,” commented Buterin.

I probably did more than most to spread the «mountain man» trope (btw I consider those remarks of mine outdated; snarks and AA changed the tradeoff space completely), and I'll happily say that I think @saylor‘s comments are batshit insane.

He seems to be explicitly arguing for a…

— vitalik.eth (@VitalikButerin) October 22, 2024

During the interview on the Markets with Madison podcast, Saylor shared his personal vision for the future of Bitcoin and the evolution of the crypto community. He expressed concerns regarding the withdrawal of Bitcoins from centralized storage platforms.

“I believe that when Bitcoin is owned by a group of crypto-anarchists who are not regulated organizations, do not acknowledge the government, taxes, or reporting requirements, it increases the risk of confiscation,” said Saylor.

Interestingly, Saylor himself, a well-known crypto billionaire, previously paid $40 million to settle tax evasion allegations and $8.5 million to resolve claims of financial fraud.

Additionally, during the Markets with Madison interview, the MicroStrategy co-founder stated that since he has no descendants to whom he can pass on his cryptocurrency wealth, he plans to bequeath his fortune to humanity. He compared his contribution to that of Satoshi Nakamoto, who left behind a million Bitcoins.

“When I am gone, I am gone. Like Satoshi, who left a million Bitcoins for the world, I will leave what I have to civilization,” said Saylor.

As of August 2024, MicroStrategy holds 252,220 BTC, making it the largest corporate holder of Bitcoins, while Saylor personally possesses over $1 billion in Bitcoins (approximately 17,857 BTC).