Saylor believes that large financial institutions are better equipped to manage the custody of digital assets, claiming this would enhance Bitcoin's adoption by providing security and legitimacy.

He suggested that Bitcoin holders have nothing to fear from transferring their assets to regulated institutions for safekeeping.

Owning private keys offers security but also entails significant responsibility, as illustrated by the case of James Howells, who lost a hard drive containing 8,000 Bitcoins.

Michael Saylor, founder of MicroStrategy, is facing criticism from the Bitcoin community following his recent comments about Bitcoin custody risks during an interview.

In the interview, Saylor argued that holding Bitcoin with regulated institutions is safer from seizure than keeping it with unregulated entities, which he labeled as 'paranoid crypto-anarchists.'

He further criticized Bitcoin owners who prefer self-custody due to their distrust in government, suggesting that their fears are unfounded.

Despite his views, some critics warn that the U.S. government might undermine Bitcoin's utility, as it conflicts with the government's ability to print unlimited dollars.

ShapeShift founder Erik Voorhees emphasized that self-custody acts as a safeguard against centralization and corruption in the crypto space.

Saylor views Bitcoin as a foundational asset for the future, likening it to steel, which will support greater advancements in the 21st century.

He highlighted the significant depreciation of the dollar, noting that it loses 7% of its value annually over a century, further emphasizing Bitcoin's value retention.

While some industry voices support Saylor's shift towards institutional custody, others maintain that self-custody remains crucial for individual Bitcoin users.

As of early 2024, there are 19.6 million BTC in circulation, with only 1.4 million left to be mined before reaching the maximum cap of 21 million.