Michael Saylor's proposal for major financial institutions and "too big to fail" entities to hold Bitcoin has stirred confusion within the Bitcoin community. Buterin and others argued that such an approach contradicts the decentralized nature of Bitcoin and other cryptocurrencies.
In response to Michael Saylor's comments, Vitalik Buterin protested, labeling Saylor's approach as "utter madness."
Buterin, who has played a significant role in shaping discussions around decentralization in the crypto space, claimed that entrusting large financial institutions like BlackRock and Fidelity with Bitcoin custody goes against the fundamental principles of cryptocurrencies.
He also pointed out that the strategy proposed by Michael Saylor leads to regulatory capture—a scenario where powerful financial institutions gain control over Bitcoin, thereby jeopardizing its decentralization.