30s Summary

MicroStrategy CEO Michael Saylor has upset Bitcoin users by suggesting they should trust banks over self-storage for their digital currency, a reversal of his previous stance. Critics see this as turning Bitcoin into a mainstream investment rather than a universal currency, with some speculating it could signal MicroStrategy’s intention to become a Bitcoin bank offering Bitcoin-backed loans. Supporters, however, suggest Saylor’s message is aimed at large organisations, not individuals, and is designed to make Bitcoin appear less sketchy to mainstream audiences.

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People are quite pissed off at MicroStrategy’s head honcho, Michael Saylor, for suggesting that Bitcoin users should trust big banks over storing the digital currency on their own – completely opposite to what he’s always pushed for.

In a recent interview, Saylor suggested that people shouldn’t be worried about transferring their Bitcoin to financial institutions. It’s a weird move considering Saylor has been cheering for ordinary folks to keep custody of their Bitcoins in the past.

He also dismissed anyone worried about possible government takeover of Bitcoin as being ‘paranoid crypto-anarchists’, and argued that storing Bitcoins in hardware wallets is less reliable than using big banks that are specifically designed to keep financial assets safe.

People weren’t very happy about this change in stance. In fact, a lot of them thought Saylor was trying to turn Bitcoin into just another mainstream investment, instead of a form of currency that everyone could use.

Others speculated that Saylor’s U-turn has got something to do with MicroStrategy’s plans for becoming a Bitcoin bank that offers loans backed by Bitcoin.

John Carvalho, the big shot at Bitcoin payment firm, Synonym, was one of the critics. He pointed out how Saylor had once claimed ‘Bitcoin is hope’ for everyone, yet now seems to be mocking those who choose to manage their own Bitcoins.

Saylor did have a few supporters, though. Some people argued that his message was aimed at large organizations, not individuals, as these institutions are unlikely to go the self-custody route.

In fact, people like Mitchell Askew, the head boffin at Bitcoin mining firm Blockware Solutions, believe that Saylor was just trying to make Bitcoin appear less dodgy to the mainstream audience.

It’s worth remembering that Saylor’s company, MicroStrategy, is one of the biggest corporate owners of Bitcoin, sitting on a cool 252,220 BTC that’s worth almost $17 billion. Oh, and did I mention Saylor predicted that Bitcoin would hit a whopping $13 million per coin by 2045!

Source: Cointelegraph