Boris Johnson Calls Bitcoin a “Giant Ponzi Scheme,” Sparks Debate

• Boris Johnson calls Bitcoin a Ponzi scheme, citing reliance on new investors entering the market.
• Michael Saylor and Eric Trump reject the claim, describing Bitcoin as a decentralized network.
• Online investors debate Bitcoin’s structure, with some comparing it to pyramid or “greater fool” schemes.

Bitcoin has become the center of renewed debate after former United Kingdom Prime Minister Boris Johnson described the cryptocurrency sector as a “giant Ponzi scheme” in a recent column. The remarks drew responses from Strategy executive chairman Michael Saylor and Eric Trump, who rejected the characterization.

In the report, Johnson argued that Bitcoin’s value depends largely on new investors continuing to buy into the market. He wrote that cryptocurrencies appear to function similarly to Ponzi schemes because their prices rely on a steady flow of new participants.

Johnson said he had long believed cryptocurrencies operate in this manner and warned that the sector depends on attracting new and often inexperienced investors. To illustrate his concerns, he shared a story involving a resident from the village where he lives.

According to Johnson, the individual invested about £500, roughly $661, in Bitcoin after meeting someone in a pub who claimed the investment would double. Johnson said the investor later lost close to £20,000, or about $26,446, while attempting to recover the funds, including fees incurred during the process.

He argued that such situations demonstrate the risks facing people who may not fully understand how cryptocurrency markets operate, particularly older investors. 

Johnson also questioned whether Bitcoin has intrinsic value, noting that it exists only as digital code stored on computers. In contrast, he wrote that traditional currencies historically gain credibility from governments and institutions that support them.

Saylor and Eric Trump Reject the Claim

Johnson’s criticism prompted a response from Michael Saylor, executive chairman of Strategy and a long-time Bitcoin supporter. Saylor said Bitcoin does not fit the structure of a Ponzi scheme, explaining that the network has no issuer, promoter, or guaranteed return. He described the cryptocurrency as an open and decentralized monetary system operating through code and market demand.

Eric Trump also responded to Johnson’s comments, stating that he disagreed with the claim that Bitcoin resembles a Ponzi scheme.

Online Investors Debate Bitcoin’s Structure

The discussion has also appeared in online investor communities, where some participants have debated how Bitcoin should be classified. On Reddit, some users argued that Bitcoin more closely resembles a pyramid scheme rather than a Ponzi scheme, describing it as a system driven by network participation.

One commenter wrote that pyramid schemes are based on network marketing structures and suggested Bitcoin fits that model. Another user described the cryptocurrency as a “greater fool scheme,” referring to the idea that asset prices rise because investors expect someone else to purchase them at a higher price later.

Related: Peter Schiff Calls Bitcoin a ‘Fake Asset’ as Gold, Silver Rally While Crypto Dumps