During a recent podcast interview, MicroStrategy’s CEO, Michael Saylor, shared his thoughts on large corporations purchasing and centralizing Bitcoin (BTC), stating that it should not be a cause for concern. Speaking to Natalie Brunell on the Coin Stories podcast, Saylor emphasized the inevitability of third-party and corporate participation in the Bitcoin space.
While many Bitcoin enthusiasts desire total self-control over their Bitcoin, also known as self-sovereignty, Saylor argued that it might not be the only answer. He pointed out that as Bitcoin becomes more integrated into society, it will have numerous use cases, and there will not be a one-size-fits-all model.
Saylor explained, “We need to be prepared for Bitcoin to infuse everything.” He further elaborated that different types of wrappers will emerge, with some people opting for self-custody, others using multi-signature wallets, while some will require the services of a layer 3 custodian. The diversity in Bitcoin usage will serve political, utility, and functionality purposes.
The need for custodians, according to Saylor, can be attributed to three main reasons: technical, political, and natural. From a political standpoint, relying on a third party may be the only viable option. For example, the mayor of New York will still govern regardless of individual preferences, highlighting the need for custodianship.
Saylor also acknowledged the technical reasons behind the necessity of custodians. As more people engage in cryptocurrency transactions using their mobile phones, trusting layer 3 third parties like Bank of America and Apple becomes unavoidable. These custodial layer 3 solutions will provide the functionality required by users.
Furthermore, Saylor mentioned natural reasons for entrusting assets with custodians. He gave the example of an 85-year-old suffering from Alzheimer’s disease or securing holdings for a future grandchild. In these cases, it might be safer and more practical to utilize custodial services.
Saylor emphasized that the optimal blend of Bitcoin integrations will ultimately be determined by the market. Instead of being afraid of the different ways people integrate, wrap, embed, or execute with Bitcoin, he urged the community to embrace the market’s ability to shape the right mix of Bitcoin integrations.
The increasing involvement of large corporations and third-party custodians in the Bitcoin space marks a significant shift in the industry’s landscape. While some may prefer complete control over their assets, others may find value in the convenience and security provided by trusted custodians. As Bitcoin continues to grow and evolve, it will become essential to accommodate diverse needs and use cases, thus enabling broader adoption and integration of the cryptocurrency in various aspects of society.
Overall, Saylor’s perspective highlights the acceptance of third-party and corporate participation in the Bitcoin ecosystem, recognizing the importance of accommodating different preferences while maximizing the potential of Bitcoin’s integration into our daily lives.
Source: Coin Stories podcast with Natalie Brunell