Michael Saylor Targets Bitcoin Orthodoxy: 'Satoshi Is Not a Prophet'

[Block Media Reporter Ham Ji-hyun] After a debate surrounding the 'original purpose' of Bitcoin led to an actual chain split, Michael Saylor, Chairman of Strategy, has claimed a 'Bitcoin Reformation.'

He argues that Bitcoin must be stored directly by individuals and used as currency, and that the existing 'Bitcoin Orthodoxy' which rejects integration with banks, governments, and financial products must be transcended. The market is paying attention to this article as it comes after the failure of Bitcoin Improvement Proposal (BIP)-110, which aimed to limit non-financial data recording on the Bitcoin network.

Saylor stated in his article, "Bitcoin started as a technological rebellion but will complete its potential as a structure for economic inclusion," diagnosing that Bitcoin is transforming into a global capital system involving banks, custodians, exchanges, and governments beyond individuals, funds, and publicly traded companies.

The Limitations of 'Bitcoin Orthodoxy' Shown by BIP-110's Failure

The example Saylor directly presented in this article is BIP-110.

BIP-110 emerged as non-financial data such as images and tokens were increasingly recorded on the Bitcoin blockchain through Ordinals, BRC-20, and Runes, aiming to limit this through consensus rules. Supporters argued that since the core purpose of Bitcoin is 'sound money,' the use of limited block space for non-financial data should be restrained.

However, this attempt did not receive network support. The BIP-110 camp activated separate rules on the 9th without sufficient miner support, leading to a split from the existing Bitcoin chain. Subsequently, most hash power remained on the original chain, isolating the BIP-110 chain.

Saylor interpreted this not merely as a technical failure but as an event that revealed the essence of Bitcoin governance. The proposal in the BIP-110 repository was marked as 'Closed' after the chain split and mining stagnation on the 9th.

He emphasized that "conviction is not consensus," stating that while developers can create code and users have the freedom to execute it, they cannot force miners, exchanges, custodians, applications, and the entire market to recognize a specific chain as Bitcoin.

Ultimately, in response to the question posed by BIP-110, 'Is Bitcoin money or a data recording platform?' Saylor concluded that neither side should determine the correct use of Bitcoin.

"Satoshi Is a Founder, Not a Prophet"

Saylor's criticism extends beyond BIP-110 to the entire early Bitcoin culture.

He declared, "Satoshi was a founder, not an oracle." While acknowledging Satoshi Nakamoto's achievements, he argues that the judgments made in 2008 should not be accepted as permanent laws of Bitcoin.

He defined the Bitcoin white paper not as a 'constitution' but as a starting point. The white paper merely describes a technology that solves the double-spending problem without a trusted third party, and is not a document that defines the vast financial systems of custodians, securities, credit, taxes, and insurance.

Saylor contended that Bitcoin does not need to eliminate the dollar or topple banks and governments to succeed. Fiat currency will continue to be used in taxes, wages, and everyday transactions, while Bitcoin can serve as 'digital capital' with scarcity, mobility, and global liquidity beneath it.

He believes that Bitcoin's larger role could be to become a preparatory asset for designing new stocks, credit, debt, currencies, and derivatives, beyond just a means of everyday payment.

ETFs, Banks, and Custodians Are Not 'Fake Bitcoin'

This claim aligns with the Bitcoin financialization strategy that Strategy is pursuing.

Saylor drew a line against the perspective that unconditionally rejects Bitcoin exchange-traded products (ETPs), stocks of companies holding Bitcoin, preferred stocks, bonds, and derivatives. While these products are not identical to Bitcoin held directly, they are financial products with different legal rights and risks, and thus should not be treated as fake Bitcoin. He emphasized that investors should evaluate what is collateralized, who manages the collateral, and the leverage and fees involved, rather than rejecting the products outright.

He expressed a similar stance on self-custody. Saylor argued that the right to store Bitcoin directly must be guaranteed, but not all investors need to manage their private keys directly. Since individuals, companies, and governments have different risk management capabilities, self-custody, multi-signature, and professional custodial services can coexist.

From 'Bitcoin Purism' to Global Capital Markets

Ultimately, the core of Saylor's 'Bitcoin Reformation' presented immediately after the failure of BIP-110 is that Bitcoin must transcend the framework of the early cypherpunk culture.

Considering that BIP-110 failed to receive market support in defining the correct use of Bitcoin as consensus rules, Saylor argues that the methods of storing Bitcoin, financial products, and institutional participation should not be dictated by a specific group.

The next stage that Saylor envisions is a global capital market utilizing Bitcoin, involving banks, companies, asset management firms, insurance companies, and governments. He predicts that not only digital stocks, credit, debt, currencies, and derivatives based on Bitcoin but also 'Machine Capital'—software, AI, and robots that own and use Bitcoin themselves—could be created.

Saylor emphasized, "Bitcoin started as P2P electronic money, matured into digital gold, and is now becoming digital capital," stating that "the network is not abandoning principles but transcending biases."