Boris Johnson Claims Bitcoin Is a Massive Ponzi Scheme

Former UK Prime Minister Boris Johnson has sharply criticized the cryptocurrency industry, describing Bitcoin as a "massive Ponzi scheme" in his latest column for the Daily Mail.

Key Takeaways

Boris Johnson attacked Bitcoin, calling it a "massive Ponzi scheme."
He argues that it lacks intrinsic value and is built on the "greater fool" theory.
Johnson believes vintage collectibles are safer investments than Bitcoin.
He criticizes the decentralized nature of cryptocurrencies, saying it is a major weakness.
His own administration previously promoted the cryptocurrency sector in the UK.

Boris Johnson Claims Bitcoin Is a Massive Ponzi Scheme

Johnson suggests that digital assets do not hold any intrinsic value and rely solely on the “greater fool” theory. He cautions that ordinary people are increasingly falling prey to scams related to cryptocurrencies. He even compared investing in Bitcoin to acquiring a vintage Pokémon card, stating that the card may be a safer long-term investment than the world's most popular cryptocurrency.

He analogizes digital assets with traditional stores of value, including fiat currencies and even children’s trading cards. While fiat currencies can depreciate due to government overspending, they are at least supported by state authority and military strength—a practice that dates back to the Roman denarius featuring Caesar's image. According to Johnson, decentralization, which is a fundamental principle of cryptocurrency, is actually its biggest drawback.

"If no one is in charge, then there is no authority to turn to if it loses value," he cautioned. "There is no central banker to dismiss, and no government officials to hold accountable."

Johnson expresses an appreciation for the historic allure of gold, and acknowledges the tangible charm of a decades-old Pikachu card, but insists that Bitcoin is just a "string of numbers" that relies heavily on a collective willingness to believe in its value.

Interestingly, Johnson's administration played a crucial role in paving the way for the very industry he now criticizes for lacking sufficient "greater fools." During his tenure, the UK government took significant steps to support the digital asset sector. In April 2022, his then-Chancellor of the Exchequer, Rishi Sunak, announced a major initiative to position the United Kingdom as a "global hub for cryptoasset technology and investment."