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Michael Saylor Is "Batshit Insane," Vitalik Buterin Fires—Here's why

Ethereum Founder Defends Crypto Autonomy in Heated Debate

Adekunle Joshua

Key Insights

  • Michael Saylor recently argued against crypto self-custody in an interview with Madison Reidy.

  • Vitalik Buterin, Ethereum's co-founder, disagrees.

  • Buterin called Saylor’s strategy “Batshit insane” and a contradiction of everything crypto stands for.

  • Meanwhile, Saylor remains steadfast in his Bitcoin belief.

  • He intends to leave all his holdings to humanity and transform MicroStrategy into a "Bitcoin Bank" soon.

Ethereum co-founder Vitalik Buterin recently expressed strong views about Michael Saylor’s stance on Bitcoin self-custody.

Buterin’s remarks came in response to a recent interview with Saylor and Madison Reidy, in which the MicroStrategy executive suggested that allowing “paranoid crypto-anarchists” to hold their own Bitcoin could hold centralization risks:

Like Government seizure, for example.

According to Saylor, investors should consider putting their Bitcoin in large, regulated institutions—which, according to him, is "safer."

Here’s how Buterin Reacted and why:

Buterin Fires Back at Saylor

Buterin disagreed with Michael Saylor in a following tweet. The Ethereum founder went as far as calling Saylor's stance "Batshit Insane."

He argued that Saylor's suggestion is dangerous and could lead to "regulatory capture."

"Batshit insane" stances and regulatory Capture

"Batshit insane" stances and regulatory Capture

In this case, Regulatory Capture refers to a situation in which excessive regulations stifle the very ideas on which crypto is built.

For Buterin, Saylor's view aligns with institutional control rather than the independence offered by self-custody.

As context, self-custody allows users to keep their private keys, and they have complete control of their crypto assets.

While this is great for autonomy (and even security) from third-party influence, it still has its own set of challenges.

For example, if a person loses access to their private keys, it translates to a total loss of all assets—with no remedies and nothing to be done.

To reduce these risks, many users turn to third parties (known as custodians) who help them store their keys and manage their assets.

Buterin's disagreement with Saylor's stance aligns with the popular saying, "Not your keys, not your crypto."

If a third party controls a person's keys, they also control the assets and can freeze or seize them under government pressure.

Put simply, Saylor is pro-safety, and Buterin is pro-autonomy.

Cypherpunk Community Defends Self-Custody’s Role in Bitcoin’s Future

Several prominent figures in the crypto space have taken Buterin’s side against Saylor’s.

One of these is Jameson Lopp, the co-founder of a self-custody platform called Casa HODL.

Why self-custody is important

Lopp argued that self-custody isn’t simply about freedom—instead, it has more to do with Bitcoin remaining decentralized.

Without self-custody, Bitcoin’s core values are at risk.

Moreover, if a few large custodians get enough control of Bitcoin private keys, they could make the network vulnerable to external control.

They could also reduce the incentive for advancing cryptographic technology and other solutions.

One of the biggest debates against Saylor’s stance stems from the collapse of the FTX exchange in 2022.

Users lost billions of dollars due to a lack of control over their assets, with more than $8 billion vanishing into thin air.

States like Oklahoma have even enacted laws to protect citizens’ rights to self-custody.

Saylor’s Vision of Bitcoin as Economic Infrastructure

While Saylor's views on self-custody have sparked controversy, he remains one of Bitcoin's most vocal advocates.

In a recent interview with the New Zealand Herald, he drew parallels between Bitcoin and foundational technology like steel and electricity.

According to Saylor, while these two underpin modern infrastructure, Bitcoin could also form the bedrock of future economic systems.

This is especially true with Bitcoin's position as an asset that doesn't degrade over time.

Saylor also described traditional currencies as "fragile and subject to devaluation."

He said, "If you lose 7% of your energy for 100 years, you lose 99% of whatever you are."

In contrast, he argues that Bitcoin is like a "battery that never loses its charge" and preserves its economic value indefinitely.

He sees Bitcoin as a revolutionary tool—a means of global stability and a bridge between traditional economy and a new era of digital assets.

“I’m Leaving All My Bitcoin To Humanity,” Saylor Says

Saylor also drew inspiration from Satoshi Nakamoto, Bitcoin’s creator.

Saylor mentioned that he intends to leave his Bitcoin to society.

"Just like Satoshi left a million Bitcoin to the universe, I'm leaving it all to the civilization," he said.

Keep in mind that under Saylor's leadership, MicroStrategy has accumulated over 252,000 Bitcoin, according to Saylor Tracker.

This makes MicroStrategy the largest corporate Bitcoin holder globally.

Earlier in October 2024, Saylor also mentioned MicroStrategy's shift into what he calls a "Bitcoin Bank."

Incoming MicroStrategy pivot

This pivot aims for a possible trillion-dollar valuation as well as issuance of Bitcoin-backed securities which Saylor believes will transform the market.

Overall, while Saylor's aggressive Bitcoin strategy has raised eyebrows so far, he has dismissed critics who labelled his acquisitions as an "infinite money glitch."

“It’s not a money glitch—it’s a digital transformation of the capital markets,” he argued.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.