Former UK Prime Minister Calls Bitcoin A ‘Giant Ponzi Scheme’, Strategy’s Saylor Replies

Former Prime Minister of the United Kingdom, Boris Johnson, said he has always feared that Bitcoin is a “giant Ponzi scheme,” with the latest stories around the cryptocurrency appearing to prove him right.

Former Prime Minister Johnson Calls Pokémon Cards A Better Bet Than BTC 

In a March 13 Daily Mail column, former UK Prime Minister Boris Johnson shared his thoughts about Bitcoin, the world’s largest cryptocurrency by market capitalization. According to the former political leader, Bitcoin and other crypto assets are a Ponzi scheme because they lack intrinsic value and sufficient real-world uses.

Johnson argued that Bitcoin relies on the “greater fool” theory and is sustained by the collective belief that endless new buyers will emerge. Sharing the story of an aggrieved local investor, the former UK leader warned that ordinary people are increasingly falling victim to crypto-related fraud.

Johnson compared the flagship cryptocurrency to traditional stores of value, such as gold and fiat currency, while claiming that Pokémon cards are a safer long-term bet than the world’s largest cryptocurrency. While noting the historic allure of gold and the sentimental value of vintage Pikachu cards, the former Prime Minister called Bitcoin “strings of numbers” with no central authority or accountability.

In fact, Johnson argued that decentralization, a unique selling point of cryptocurrencies, is their greatest weakness. In his Daily Mail column, the former Mayor of London predicted that the eroding confidence — especially among regular people — will be the cause of Bitcoin’s end.

Interestingly, contrary to his latest comments in his Daily Mail column, Johnson’s own administration was quite instrumental in opening the UK’s doors to the digital asset industry. In April 2022, the then-Chancellor of the Exchequer, Rishi Sunak, unveiled a significant initiative to make the United Kingdom a “global hub for cryptoasset technology and investment.”

Bitcoin Is Not A Ponzi Scheme: Michael Saylor

Expectedly, Johnson’s comments about the premier cryptocurrency sparked interesting reactions from different corners of the crypto community. Strategy’s founder and chairman, Michael Saylor, produced one of the loudest rebuttals to the former Prime Minister’s claims.

Saylor, in a reply on X (formerly Twitter), said that Bitcoin is not a Ponzi scheme. Using the definition of a Ponzi scheme, the Strategy chairman reiterated that the flagship cryptocurrency has no “central operator promising returns and paying early investors with funds from later ones,’ as often required by Ponzi schemes.

Saylor wrote:

Saylor has been one of the most vocal supporters of Bitcoin, with his company’s steady acquisition a proof of his belief in Bitcoin’s long-term promise. As of this writing, the price of BTC stands at around $70,590, reflecting a 1.4% decline in the past 24 hours.