Former British prime minister Boris Johnson has described Bitcoin and other cryptocurrencies as a “giant Ponzi scheme”, arguing that their value depends largely on continued belief among investors rather than underlying economic fundamentals.

In a recent commentary, Johnson said he had long been sceptical about digital currencies and suggested that their price relies heavily on the willingness of new buyers to keep entering the market.

He warned that if confidence were to collapse, the value of such assets could rapidly decline.

Johnson’s remarks focused on what he sees as the absence of a central authority or identifiable issuer responsible for the system.

Unlike traditional financial products or regulated investments, Bitcoin operates through decentralised software maintained by a distributed network of users.

Johnson questioned how investors who suffer losses could seek recourse in a system where responsibility is diffuse and its founder, known by the pseudonym Satoshi Nakamoto, remains unidentified.

His comments quickly prompted a response from prominent figures in the cryptocurrency sector.

Supporters of Bitcoin argued that the technology’s decentralised nature is precisely what gives it resilience and independence from government or institutional control.

They say the digital asset’s value derives from transparent code, limited supply and market demand rather than from guarantees issued by a central body.

Some industry advocates also noted that Bitcoin has operated for more than a decade, attracting institutional investors and developing an extensive global ecosystem of exchanges, payment services and investment vehicles.

For them, equating the cryptocurrency with a Ponzi scheme overlooks the distinction between fraudulent investment programmes and a decentralised financial network.

The exchange highlights the persistent divide between critics of cryptocurrencies and their supporters.

While sceptics continue to warn about speculation, volatility and consumer risks, proponents argue that blockchain technology represents a transformative financial innovation with growing adoption worldwide.

Despite his criticism, Johnson’s time in government coincided with early efforts to develop a regulatory framework for digital assets in the United Kingdom.

Policymakers began exploring rules governing crypto exchanges, stablecoins and digital payments, aiming to balance innovation with consumer protection.

The debate surrounding Bitcoin’s legitimacy is unlikely to fade soon.

As cryptocurrencies expand into mainstream finance and attract renewed political scrutiny, discussions over their value, risks and regulatory future are expected to intensify.