Michael Saylor Criticizes Proof-of-Reserves, What Does He Say?

Jakarta, Pintu News – Strategy founder Michael Saylor recently criticized the concept of proof of reserves (PoR) in a video that went viral. While the crypto community sees PoR as a way to increase accountability and transparency, Saylor highlighted some of the weaknesses of the current system.

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Michael Saylor’s opinion on backup evidence

In an event related to the Bitcoin 2025 conference in Las Vegas, Michael Saylor stated that issuing proof of reserves is a bad idea. According to him, the current conventional way of issuing PoRs may pose a security risk.

Saylor argues, “The current way to issue proof of reserves is an insecure proof of reserves. It actually reduces the security of issuers, depositories, exchanges, and investors.” Saylor added that publishing wallet addresses would make it easier to track transactions back and forth, which increases vulnerabilities for issuers, depositories, exchanges, and investors.

To strengthen his argument, he suggested using artificial intelligence to analyze the security issues of wallet address issuance.

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Weaknesses of Current Backup Evidence

According to Saylor, simply publishing proof of assets without disclosing liabilities does not help large investors in making multi-billion dollar investments. He argues that the best process is to get an audit from one of the big four and publish it with the necessary executive signatures from the company.

Saylor also shared that perhaps in the future, using zero-knowledge proof technology to keep personal details secure would be a better way. This shows that while he is critical of the current PoR, he is not against transparency and accountability as a whole.

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Community Reaction and Implications for Industry

Michael Saylor’s critical comments on backup evidence have attracted widespread attention, with some supporting his views and others raising concerns about the potential consequences for industry accountability standards.

Although PoR adoption among crypto exchanges increased after the FTX crash, crypto-related crime continues to rise. Recently, Hong Kong police busted a $15 million crypto money laundering ring, arresting 12 people involved.

Saylor’s comments come at a time when kidnappings and crypto-crime are at a high, such as the daylight abduction of Paymium’s founder’s daughter in France.

Conclusion

While there are valid concerns regarding security, modern methods of PoR such as Merkle trees and auditing have reduced exposure. Transparency builds trust, with exchanges like Kraken adopting PoR. The industry seems to be leaning towards PoR, but the trade between security and openness continues to be a topic of lively debate.

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Reference

• Coingape. Michael Saylor Says Proof of Reserves is a Bad Idea, Community Calls it a Red Flag. Accessed on May 28, 2025
• Featured Image: Cryptoslate