On Friday, Michael Saylor took to social media to defend Bitcoin after former UK Prime Minister Boris Johnson criticized the cryptocurrency, likening it to a “giant Ponzi scheme” in a column for the Daily Mail.
In his op-ed, Johnson expressed skepticism about the intrinsic value of Bitcoin and other cryptocurrencies, arguing that they rely heavily on collective belief rather than having any real worth. He posited that cryptocurrencies operate similarly to Ponzi schemes, as their value is contingent upon a consistent influx of new investors willing to enter the market. Johnson stated, “I have always suspected from the outset that all cryptocurrencies were basically a Ponzi scheme,” indicating that such systems require a “constant supply of new and credulous investors” to sustain themselves.
To underscore his concerns about the potential pitfalls of cryptocurrency investing, Johnson recounted the story of a villager who had invested approximately £500 (around $660) in Bitcoin after being convinced by an acquaintance in a pub that the investment would double. The outcome was stark: the individual ultimately lost close to £20,000 (around $26,000) after incurring various fees while attempting to retrieve his funds. Johnson highlighted this narrative to emphasize the risks that people—especially older investors who may lack a deeper understanding of crypto markets—might face.
Moreover, Johnson raised questions about Bitcoin’s underlying value, asserting that, unlike tangible assets such as gold or collectibles, cryptocurrencies are merely digital code housed in computers. He pointed out that traditional currencies gain their credibility from the backing of governments and institutions, which he argues is absent in the case of Bitcoin.
In response, Michael Saylor vehemently rejected the label of “Ponzi scheme,” clarifying on social media that such schemes involve a central operator promising returns and paying earlier investors with incoming funds. In contrast, he stated that Bitcoin is characterized by the absence of an issuer or promoter and lacks guaranteed returns. “It’s just an open, decentralized monetary network driven by code and market demand,” Saylor emphasized.
As of the latest update, Bitcoin is trading at $70,647.42, reflecting a 1.13% decrease over the last 24 hours. It boasts a market capitalization of approximately $1.41 trillion and a 24-hour trading volume of $55.35 billion, with a volume-to-market-cap ratio of 3.91%.
