Bitcoin maximalist Michael Saylor believes Bitcoin’s ecosystem should welcome everyone and every type of custodial option available.

Cryptocurrency community leaders and members criticized MicroStrategy executive chairman Michael Saylor for comments that seemingly criticized users who self-custody Bitcoin (BTC). Saylor suggested that so-called “crypto-anarchists” solely advocating against institutional safekeeping of digital assets were counterintuitive to Bitcoin’s regulatory security and mass adoption.

The comments attracted scrutiny from Bitcoin proponents like ShapeShift founder Erik Voorhees and crypto developers like Ethereum’s Vitalik Buterin. Buterin, in particular, found Saylor’s comments on custody to be “bat shit insane.”

Without publicly addressing any individual backlash, Saylor’s Oct. 23 post expressed support for the right to choose how assets like Bitcoin should be kept. The post advocated for considering and accepting all available options for BTC custody based on personal preference.

Self-custody has long been a prevailing concept in crypto circles since blockchain’s inception. The entire industry was built on declining trust in legacy institutions and a shift towards separating money from the state.

Fifteen years after Bitcoin’s launch, developments like spot BTC ETFs have ushered in a new era of holding Bitcoin. While many agree that ETFs have encouraged global adoption, calls for self-custody of Bitcoin have never faded away. 

If anything, the conversation around individual custody of assets like BTC has only increased in 2024. Maxis, a term describing believers of a single blockchain asset, relentlessly argue that decentralized crypto storage remains users’ best defense against censorship and centralized failure points.

Anthony Pompliano, founder of Professional Capital Management, believes Tesla’s push into automation could be the catalyst for widespread stablecoin adoption.

In a recent post, Pompliano highlighted Tesla’s new autonomous vehicles and humanoid robots, introduced at the company’s Robotaxi Day event, as a potential turning point for digital currencies. 

He argued that these innovations could lead to a new era in which stablecoins become the primary transaction medium in a machine-driven economy.

Tesla’s advancements = more stablecoin use cases

Tesla, led by CEO Elon Musk, unveiled a range of products at the event, including a driverless Cybercab, a larger Robovan, and its Optimus humanoid robots. 

According to Pompliano, these machines represent more than just advancements in automation — they signal the need for a new type of currency that can facilitate seamless, low-cost transactions between machines.

Pompliano told Yahoo Finance that this stablecoin need is similar to the introduction of E-Z Pass, where stablecoins could act as the “digital checking account” for autonomous systems. 

“People or machines aren’t going to want to spend their Bitcoin,” Pompliano said in an interview with Yahoo Finance. “If Bitcoin is going to be more valuable in the future, they’re going to save it. Instead, they’ll use digital stablecoins for transactions.”

Stablecoins are digital currencies pegged to stable assets, often the U.S. dollar or other fiat currencies, to avoid the volatility seen in cryptocurrencies like Bitcoin (BTC). Their value remains stable, making them suitable for day-to-day transactions. 

In recent years, stablecoins such as Tether (USDT) and USD Coin (USDC) have gained prominence as a way to send money quickly and securely across borders, often with lower fees than traditional banking systems.

Pompliano also pointed out that banks are paying closer attention to stablecoin adoption. As automation accelerates, he predicts stablecoins will become the preferred currency for machine transactions. 

He suggested that the rise of robotics and automation, like that of Tesla, combined with the use of stablecoins, represents a new trend that investors should watch closely.

“My guess is there will be a large uptick in usage for stablecoins as a result of these technologies coming into production. Bitcoin will be for saving economic value and stablecoins will be for spending. The digital rails that stablecoins exist on allow for cheaper and faster transactions.”

Anthony Pompliano