Former Prime Minister of the United Kingdom Boris Johnson called Bitcoin a “Ponzi scheme” in his latest opinion article. Johnson said that Bitcoin does not have any real value and that it is inferior to Pokemon cards, incurring criticism from cryptocurrency proponents and executives.
Johnson wrote an opinion article published on Daily Mail on Friday. He started with a personal experience where his friend donated 500 British pounds, which is approximately $661, to a man who claimed that the money would be doubled with a Bitcoin investment.
The investment plan saw the promoter receive more money from the friend. He asked for additional charges and fees. This went on over a period of three and a half years.
Johnson Warns of Bitcoin Investment Risks
Johnson said that the friend had paid 20,000 pounds, which is approximately $26,474. The investor never recovered the funds.
The losses caused serious financial stress. Johnson said that the person had difficulty paying the bills. Others living in the same neighborhood experienced similar problems.
Johnson used this story to caution readers on investments. He said that crypto investments are often associated with fraud and unrealistic promises. He said that this asset does not have a long history of stability.
He then drew a parallel with the trading cards of Pokemon. Johnson said that these cards had decades-long popularity. He said that children had traded these cards for over thirty years.
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The former prime minister described the cards as “collectibles that are widely recognized.” He added that rare collectibles are still tradable even decades later. Even skeptics, he said, can understand why certain cards keep market value.
Michael Saylor Defends Bitcoin’s Structure
Johnson said that this makes the Pokemon cards easier to comprehend compared to Bitcoin. Johnson insinuated that the cryptocurrency lacks clear value. This statement quickly went viral on various social media platforms.
The proponents of the digital assets strongly opposed Johnson’s argument. Michael Saylor, the co-founder of Strategy, responded to Johnson in public on the social media platform X. Saylor said that Bitcoin cannot be considered a Ponzi scheme.
However, Saylor clarified that a Ponzi scheme needs a central figure to promise investors a certain return. The initial investors are paid off by using new investors’ money. He said that cryptocurrency does not operate in this way.
Saylor added that Bitcoin does not have a central source. There are no profits promised in digital asset. It is run on open-source code and supply-demand dynamics.
Pierre Rochard, CEO of The Bitcoin Bond Company, also defended the crypto king from Johnson’s comments. Rochard said that modern debt-based fiat systems are more similar to a Ponzi scheme than cryptocurrency. His response echoed a common argument among cryptocurrency supporters.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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