Former UK Prime Minister Boris Johnson has reignited the cryptocurrency debate with his harsh statements about Bitcoin.
Johnson said he has long suspected that Bitcoin could be “a giant Ponzi scheme,” and that some investor stories he has recently heard have reinforced this view.
Johnson voiced his criticisms of the cryptocurrency market through a personal anecdote. He recounted how an elderly acquaintance he met at a village church had fallen into serious financial difficulties due to Bitcoin investments. Johnson explained that this individual had invested in BTC years ago on the advice of an acquaintance. According to Johnson, this person initially believed they would make money quickly with a small investment, but after about three and a half years, they had lost approximately £20,000 due to various fees and failed attempts. Johnson stated that there were other people in the region who had experienced similar situations.
Touching upon the fundamental value of crypto assets, Johnson argued that physical assets like gold have historical appeal, and even collectibles possess a certain demand and perceived value. In contrast, claiming that Bitcoin is merely a sequence of numbers stored on computer networks, Johnson raised the question, “Who is behind this asset, who is responsible?” He stated that modern monetary systems are built on state authority and trust, and that a currency without a central authority can only maintain its value through investor confidence.
The former prime minister argued that the sustainability of the cryptocurrency market depends on the influx of new investors, claiming it resembles Ponzi schemes. Warning that older and inexperienced investors in particular could be vulnerable to fraud, Johnson expressed his belief that trust in the crypto market could diminish over time. He also suggested that in the future, even trading cards might be a better investment than Bitcoin.
Big Bull Michael Saylor Responds to Johnson
Johnson’s remarks quickly drew a response from Bitcoin supporters. Michael Saylor, founder of MicroStrategy and a Bitcoin advocate, stated that Bitcoin cannot be characterized as a Ponzi scheme. Saylor explained that Ponzi schemes are typically run by a centralized operator promising investors certain returns, whereas Bitcoin has no central issuer or guaranteed return. According to Saylor, Bitcoin operates as a decentralized money network powered by open-source code and market demand.
*This is not investment advice.