Several prominent figures in the cryptocurrency industry have pushed back against former UK Prime Minister Boris Johnson after he described Bitcoin as a Ponzi scheme in a newspaper column.
Key Takeaways:
- Boris Johnson called Bitcoin a “Ponzi scheme,” warning readers against investing in cryptocurrencies.
- Crypto leaders including Michael Saylor, Paolo Ardoino and Adam Back quickly rejected the claim.
- Critics argue Bitcoin lacks the central operator required for a Ponzi scheme.
Johnson, who led the United Kingdom from 2019 to 2022, wrote in a Daily Mail article that he had “long suspected Bitcoin is a giant Ponzi scheme,” warning readers against putting money into digital assets.
The comments quickly drew responses from well-known voices across the crypto sector, including Strategy co-founder Michael Saylor, Tether CEO Paolo Ardoino and early Bitcoin developer Adam Back.
Saylor Rejects Boris Johnson’s Bitcoin ‘Ponzi’ Claim
Saylor rejected Johnson’s characterization in a post on X, arguing that Bitcoin does not meet the definition of a Ponzi scheme.
“A Ponzi requires a central operator promising returns and paying early investors with funds from later ones,” Saylor wrote. “Bitcoin is not a Ponzi scheme.”
Johnson’s remarks were prompted by a personal anecdote in his column. He described meeting an elderly churchgoer who had fallen into financial difficulty after purchasing Bitcoin and later sought help covering his losses.
While acknowledging that Bitcoin operates without a central authority, Johnson argued that the cryptocurrency ultimately relies on public belief in its value.
“If people lose faith in Bitcoin, it collapses,” he wrote, adding that he fears more individuals, particularly older investors, could suffer losses tied to the asset.
The criticism was met with swift rebuttals from the crypto community. Investor and fund manager Fred Krueger responded on X by contrasting Bitcoin’s decentralized design with traditional financial institutions.
“A Ponzi usually needs a central operator, Boris,” Krueger wrote. “Bitcoin just has math.”
Tether chief Paolo Ardoino also responded, highlighting community notes on Johnson’s post explaining why Bitcoin does not fit the characteristics of a Ponzi scheme.
Meanwhile, Adam Back, CEO of blockchain technology firm Blockstream, joined the discussion with a brief reply addressing the former prime minister by his nickname “Bozza.”
Bitcoin Ponzi Claims Resurface as Critics Renew Attacks
Bitcoin has frequently faced accusations of resembling a Ponzi scheme from critics over the years.
Economist Nouriel Roubini has previously described cryptocurrencies as a “real-bubble Ponzi scheme,” while European Central Bank executive Fabio Panetta once compared the digital asset market to a “house of cards.”
Supporters of Bitcoin argue the comparison is flawed because the network lacks a central operator, a defining feature of classic Ponzi schemes.
Instead, they say the cryptocurrency operates as an open monetary system governed by code and market activity rather than promises of guaranteed returns.
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