Michael Saylor's comments on "regulated Bitcoin custody" were criticized by Vitalik

According to The Block, Ethereum co-founder Vitalik Buterin recently criticized the views of MicroStrategy founder Michael Saylor.

In a recent interview with the New Zealand Herald, Saylor said that concerns about using regulated entities to hold Bitcoin mainly stem from "paranoid cryptocurrency anarchists."

He elaborated on why Bitcoin is a superior digital asset and store of value and argued it should be seen as a "digital currency crucial to human progress."

However, his view on regulated custody sparked strong reactions within the Bitcoin community. Self-custody advocates in particular harshly criticized him, with some even questioning whether Saylor truly understands the essence of Bitcoin.

In response to this controversy, Vitalik expressed his opinion on platform X. He bluntly stated: "I am happy to say that I think Michael Saylor's comments are absurd. He seems to explicitly support protecting cryptocurrencies through regulatory capture, but there are not few precedents for this method failing. I believe this completely contradicts the core principles of cryptocurrency."

Vitalik's remarks were in response to Jameson Lopp, co-founder and CTO of Casa. Lopp had previously warned: "Bitcoin self-custody is not just for paranoids. Convincing people to trust third-party custodians can actually have many long-term negative effects." He emphasized that self-custody is not only vital for individual bitcoin holders but also key in maintaining decentralization, enhancing network security, ensuring governance participation and promoting continuous innovation without relying on third parties.

Unlike Lopp's view, Saylor advocates holding Bitcoin through regulated entities like BlackRock, Fidelity Investments , JPMorgan Chase & Co., and Invesco Ltd.. He believes doing so is safer reduces volatility and minimizes loss risk because these institutions are less likely targets for government crackdowns compared with unregulated private entities due their investments from governments and legislators.