During a recent podcast interview, Michael Saylor explained that Bitcoin being bought and custodied by corporations should not be feared, outlining three main reasons driving the need for custodians.
During a recent podcast interview, MicroStrategy’s Michael Saylor expressed the opinion that large corporations purchasing and holding Bitcoin in their custody should not be a cause for concern.
While speaking to Natalie Brunell on the Coin Stories podcast, released on Aug. 7, Saylor emphasized the inevitability of third-party and corporate participation growing in the Bitcoin space.
However, he suggested that while Bitcoin enthusiasts may desire total self-control, or sovereignty, over their Bitcoin, it might not be the only answer, as people will be using Bitcoin for diverse purposes.
“We need to be prepared for Bitcoin to infuse everything,” Saylor stated, explaining that as Bitcoin becomes more integrated into society, it will have many use cases, and there will not be a one-size-fits-all model.
Saylor outlined three main reasons underpinning the need for custodians: technical, political and natural.
From a political standpoint, relying on a third party might be the only course of action.
“The mayor of New York is still the mayor of New York. Unless you get rid of New York City, California or Iceland, the country, political reasons will mean the need for custodians.”
On the technical side, there will be people that will want to transact in crypto with their mobile phones, so trusting layer-3 third parties, such as Bank of America and Apple, will be unavoidable, Saylor said.
As for natural reasons, Saylor suggested the possibility that it is safer for certain people to entrust their assets to others.
He gave the example of an 85-year-old grappling with Alzheimer’s or the desire to secure holdings for a yet-to-be-born grandchild.
“I didn’t complain that my mother and father had the car keys when I was twelve years old, and I didn’t get the car key,” Saylor stated.
Saylor stated that the optimal blend of Bitcoin integrations will be determined by the market.