Banking Bitcoin: A Vision for Mass Adoption
As Bitcoin gains worldwide acceptance, Saylor contemplates a future where the task of Bitcoin custody extends beyond the individual, becoming the responsibility of the world’s leading banks. He believes that, as Bitcoin finds its place within every institution — from corporations and governments to non-profits — traditional banks will inevitably offer Bitcoin custody services to accommodate this transition.
The Challenge of Self-Custody
Self-custody poses significant challenges, particularly for institutions and individuals incapable of maintaining secure Bitcoin storage. Saylor argues that a single individual, whether a city mayor or a military general, should not hold the responsibility of managing Bitcoin for large organizations. Furthermore, certain demographics, such as the elderly or young inheritors, might struggle with self-custody. In these cases, traditional banks or trust companies can provide a much-needed solution.
Embracing Bitcoin: The Rise of Traditional Institutions
Saylor advocates for the integration of Bitcoin into existing institutions, emphasizing the necessity for reliable and secure custodial services to support this process. He predicts a future where Bitcoin infiltrates all facets of traditional institutions, driven by economic, physical, and political reasons. Despite criticisms of MicroStrategy’s strategy, Saylor stands firm in his conviction about Bitcoin’s global potential.
Understanding the Role of the Ordinals Protocol
Saylor recently shared his views on the innovative Ordinals protocol for Bitcoin. While critics worry about the potential network inefficiencies and growth of superficial markets, Saylor sees the protocol as a vital tool for Bitcoin’s scalability, miner success, and global adoption. He suggests that suppressing the Ordinals protocol could limit Bitcoin’s reach and endanger the mining sector.
Key Points
What is Michael Saylor’s view on Bitcoin custody?
Saylor predicts a future where all major banks offer Bitcoin custody services due to practical issues with self-custody for certain institutions and individuals.
What is the Ordinals protocol?
The Ordinals protocol allows additional metadata to be inscribed onto each Bitcoin satoshi, enabling the encoding of diverse forms of media and extending Bitcoin’s potential applications.
What are Michael Saylor’s views on the Ordinals protocol?
Saylor believes that the Ordinals protocol can extend Bitcoin’s functionality, performance, and scalability, thereby helping to secure the health of the mining sector and encouraging broader adoption.
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