Buterin criticizes Saylor's approach to Bitcoin storage
Buterin criticizes Saylor's approach to Bitcoin storage
Vitalik Buterin, co-founder of Ethereum, recently criticized MicroStrategy chairman Michael Saylor’s approach to bitcoin storage, labeling it as impractical and counterproductive.
The comments emerged in response to Saylor’s advocacy for big-bank custody of cryptocurrencies, which Buterin described as "batshit insane," reflecting his strong opposition to the proposal.
Saylor, a prominent bitcoin advocate, has argued that large financial institutions are better equipped to manage the custody of digital assets, including bitcoin. He contends that institutional custodianship would increase bitcoin’s adoption by offering more security and legitimacy to institutional investors. Saylor’s stance is rooted in his belief that major banks can effectively mitigate risks, ensuring safe storage and large-scale investment access for institutions.
Saylor said on Oct. 21 that Bitcoin holders should rely on “too-big-to-fail” banks that are “set up to hold financial assets.” He cited the FTX crash, when users lost their remaining BTC on the platform, as proof of his ideas.
However, Buterin disagreed sharply, warning that relying on traditional financial institutions for crypto custody runs counter to the principles of decentralization that underpin cryptocurrencies. In his view, placing bitcoin storage in the hands of centralized entities threatens the self-sovereignty that digital currencies were designed to promote. "There are plenty of precedents for how this strategy can fail, and to me that's not the point of cryptocurrency," Buterin emphasized.
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Buterin’s comments highlight a broader philosophical divide within the crypto community. While some, like Saylor, argue that increased involvement from traditional financial systems will help bitcoin achieve mainstream acceptance, others, like Buterin, caution that such moves could erode the decentralization and financial independence that crypto enthusiasts value. This clash underscores the ongoing debate about how best to integrate cryptocurrencies with legacy financial infrastructure without compromising their original purpose.
Looking forward, the tension between decentralization advocates and proponents of institutional adoption will likely continue to shape discussions about crypto storage and management. As more traditional institutions enter the crypto space, industry observers will monitor how the dynamics between decentralized ideals and institutional control evolve. For now, the disagreement between Buterin and Saylor serves as a reminder of the delicate balance the crypto industry must strike between growth and maintaining its core principles.
Recall, earlier Vitalik Buterin described in his blog a roadmap for Ethereum and said that he plans to reach a throughput of 100,000 TPS.
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