Boris Johnson, who was the prime minister of the United Kingdom between 2019 and 2022, described Bitcoin as a “Ponzi scheme” in a public article, which had wide repercussions in the cryptocurrency industry. This assessment of Johnson quickly received a response from the well-known names of the crypto ecosystem and reignited the discussions.
Details Behind Boris Johnson’s Statements
As one of the leading British politicians, Boris Johnson has played a role in his country’s important turning points. In his last statement, he stated that he had long-standing doubts about Bitcoin and argued that the public should be cautious about investing in digital assets. Johnson backed up his warning with a personal story from an elderly church member who suffered a significant loss on his Bitcoin investments. Claiming that the value of cryptocurrencies is largely based on collective belief, Johnson pointed out that if this belief is shaken, Bitcoin will collapse.
Instant Answers from the Crypto Industry
Following Johnson’s statement, prominent names in the crypto world expressed their opinions. Michael Saylor, one of the founders of the strategy company, stated that he did not find it correct to describe Bitcoin as a Ponzi scheme. Saylor stated in his post on Saylor explained his view as follows:
A Ponzi scheme requires a central operator that promises returns and pays early participants with money from later participants. Bitcoin has no central owner, promoter or promised return; It is an open, decentralized and software-driven money network.
Paolo Ardoino, CEO of Tether, also joined the discussion and emphasized that Johnson’s claims were answered with reasons in the community notes. In his statements, Ardoino underlined the structural features of Bitcoin that are unlike a Ponzi system.
Adam Back, CEO of Blockstream company and one of the early developers of Bitcoin, gave a short and humorous response to Johnson’s statements. Back pointed out Bitcoin’s decentralized and software-based operation.
Fred Krueger, another name from the industry, stated that Bitcoin is fundamentally different from traditional Ponzi schemes due to its centralized structure, and that Bitcoin works only with mathematics.
Bitcoin and Ponzi Discussions are on the Agenda Again
Debates about whether Bitcoin is Ponzi or not have been brought to the agenda by different critics in the past. Economist Nouriel Roubini has previously described cryptocurrencies as a “bubble Ponzi scheme”. European Central Bank Executive Board member Fabio Panetta described digital asset markets as a “house of cards”.
Proponents of Bitcoin argue that, as a money network without a central administrator or guaranteed return, it cannot be compared to Ponzi schemes. According to them, Bitcoin offers a society- and technology-based system that operates with open code and market dynamics.
