Boris Johnson’s Bitcoin ‘Ponzi’ comment sparks online clash with crypto leaders

Former UK Prime Minister Boris Johnson, who served from 2019 to 2022, described Bitcoin as a “giant Ponzi scheme” in a newspaper column and shared the piece on X. His post drew immediate responses from crypto executives disputing the claim.

In the column, Johnson wrote: “I’ve long suspected Bitcoin is a giant Ponzi scheme and now I’m hearing tales of woe that make me fear I’m right.” He recounted meeting a fellow churchgoer who sought help and, after lending money, learning the loss followed a Bitcoin purchase. He warned that if confidence weakens, prices could fall and hurt investors, adding that “the more elderly people get ripped off — in the name of Bitcoin — the faster that disillusion will set in.” He suggested most cryptocurrencies have few practical uses.

“Bitcoin is not a Ponzi scheme,” Bitcoin advocate Michael Saylor wrote on X. He noted that a Ponzi needs a central operator who promises returns and pays earlier investors with funds from later ones. By contrast, Bitcoin offers no guaranteed returns; it’s an open, decentralized monetary network governed by code and market demand.

Investor Fred Krueger challenged the description: “A Ponzi usually needs a central operator, Boris. Bitcoin just has math. Your system has the Bank of England.” Tether CEO Paolo Ardoino pointed to Community Notes attached to Johnson’s post that disputed the Ponzi label. Blockstream CEO Adam Back also rejected the characterization.

Skeptics have long compared crypto to Ponzi structures, saying prices depend on a steady flow of new buyers. Economist Nouriel Roubini has called crypto a “total real-bubble Ponzi scheme.” In 2022, European Central Bank Executive Board member Fabio Panetta likened the market to a “house of cards.” Supporters counter that Bitcoin’s open-source network lacks a central operator or promised returns, which are common features of frauds.

Johnson acknowledged Bitcoin’s decentralized architecture but warned that swings driven by market sentiment can cause steep losses. He urged caution for potential buyers and questioned the breadth of everyday uses for cryptocurrencies.