Ethereum co-founder Vitalik Buterin has criticized MicroStrategy’s Michael Saylor for advocating for institutional custody of Bitcoin. Buterin argues that this approach undermines Bitcoin’s decentralized nature.
Saylor, a known Bitcoin maximalist, had suggested that institutions like BlackRock and Fidelity should hold Bitcoin to protect it from government seizure and ensure its stability. He dismissed the concerns of those who argue that this could lead to increased centralization and potential risks.
Buterin countered Saylor’s argument, stating that self-custody is crucial for Bitcoin’s long-term security and integrity. He emphasized that advancements in technology, such as zero-knowledge proofs, have made self-custody more accessible and secure.
The debate between Buterin and Saylor highlights the ongoing discussion about the balance between security and decentralization in the cryptocurrency space. While some believe that institutional custody can provide greater security, others argue that it can lead to increased centralization and vulnerability.