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In a recent podcast discussion, MicroStrategy’s Michael Saylor conveyed that the acquisition and subsequent centralization of Bitcoin (BTC) by major corporations should not raise alarms.
During his conversation with Natalie Brunell on the Coin Stories podcast, which aired on Aug. 7, Saylor highlighted the inevitability of increasing involvement from third parties and corporations in the Bitcoin ecosystem.
He noted that while Bitcoin advocates may seek complete self-governance over their Bitcoin – referred to as self-sovereignty – this may not be the sole solution, as individuals will utilize Bitcoin for various reasons.
“We need to be prepared for Bitcoin to infuse everything,” Saylor remarked, clarifying that as Bitcoin becomes more woven into the fabric of society, it will serve numerous functions, and a universal model may not apply.
“There are different types of wrappers. Some individuals will always opt for self-custody, some will choose multi-sig, and others will require a layer 3 custodian. There will be a necessity for political, utility, or functional purposes.”
Michael Saylor speaking to Coin Stories host Natalie Brunell. Source: Coin Stories
Saylor identified three primary justifications for the necessity of custodians – technical, political, and natural factors.
From a political perspective, depending on a third party may be the only viable option.
“The mayor of New York remains the mayor of New York. Unless New York City, California, or Iceland is eliminated, political factors will necessitate the use of custodians.”
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On a technical level, there will be individuals who wish to conduct crypto transactions via their mobile devices, making reliance on layer 3 third parties, such as Bank of America and Apple, unavoidable.
“Bitcoin will serve as a base layer. There will be layer 2 solutions like Lightning to enhance speed. Then there will be layer 3 entities like Bank of America and Apple. Custodial layer 3 will exist to facilitate functionality.”
Michael Saylor speaking to Coin Stories host Natalie Brunell. Source: Coin Stories
Regarding natural factors, Saylor proposed that it may be safer for certain individuals to delegate their assets to others.
He illustrated this with the example of an 85-year-old dealing with Alzheimer’s, or the intention to safeguard assets for a grandchild who has yet to be born.
“I didn’t complain that my mother and father held the car keys when I was twelve years old, and I didn’t have the car key,” Saylor remarked.
Saylor asserted that the ideal combination of Bitcoin integrations will be shaped by market dynamics.
“We shouldn’t fear the various methods people use to integrate, wrap, embed, or utilize Bitcoin; there is no singular correct approach, and the marketplace will dictate the appropriate blend of Bitcoin integrations.”
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