Max Keiser (edited image)
Bitcoin has been declared dead, dangerous, or misunderstood countless times over the years. In a recent rapid-fire Q&A, finfluencer BTC Isla asked outspoken Bitcoin advocate Max Keiser to address some of the most common claims critics make about Bitcoin — and Keiser didn’t hold back.
From Ponzi scheme accusations to government bans and quantum computing fears, here’s how Keiser responds to 15 of the most persistent Bitcoin myths.
1. Is Bitcoin a Ponzi Scheme?
Keiser says this is the easiest myth to debunk.
A Ponzi scheme relies on continuously creating new units and selling them to new participants. Bitcoin, by contrast, has a hard cap of 21 million coins. No one can print more, change the supply, or dilute existing holders. It means that in the future, if Bitcoin demand increases, no one can create more than the existing 21 million coins. Instead, its price will rise as demand grows against a limited supply — the classic supply-and-demand dynamic.
By definition, Keiser argues, Bitcoin cannot be a Ponzi scheme.
2. Will XRP or Other Altcoins Replace Bitcoin?
According to Keiser, this misunderstands Bitcoin’s core value.
He points out that XRP and most other altcoins are centralized, either fully or partially. Bitcoin’s strength lies in its decentralization, which makes it uniquely suited to function as “perfect money.”
A centralized system, he says, cannot replace a decentralized one.
3. Do You Need to Buy a Whole Bitcoin to Get Started?
Keiser responds with humor.
Bitcoin is divisible. You don’t need to buy one full coin to participate. While he personally advocates buying Bitcoin regularly, ownership is measured in satoshis, not whole coins. It means every satoshi counts.
4. Is Bitcoin Mining Controlled by China?
Keiser describes mining concentration as fluid, not fixed.
Mining shifts geographically over time. When pressure builds in one region, it moves elsewhere — much like squeezing a balloon. Over the long term, mining has continued to decentralize, and Keiser says concentration has never threatened the network.
5. Is Bitcoin Mainly Used by Criminals?
Keiser argues the opposite.
Compared to fiat money, gold, or even fine art, Bitcoin is actually one of the worst tools for illicit activity due to its transparent ledger. He notes that Bitcoin’s share of illicit usage has declined year after year.
6. Will Bitcoin Die When the Last Block Is Mined?
Keiser reframes the question entirely.
The last Bitcoin block isn’t expected to be mined for roughly 90 years. The more urgent concern, he argues, is whether humanity can solve its systemic problems first. If it does, Bitcoin’s long-term role will already be clear.
7. Does Bitcoin Have No Intrinsic Value?
Keiser agrees — and says that’s the point.
Bitcoin’s lack of intrinsic utility allows it to function as perfect money, without subjective interference. Assets like gold have utility, which complicates price discovery. Bitcoin’s value comes solely from its monetary properties.
8. Is Bitcoin Backed by Nothing?
Keiser says Bitcoin is backed by energy.
Just as gold requires energy to mine and fiat currencies rely on energy-intensive systems, Bitcoin is backed by proof of work — real-world energy converted into security.
9. Can Bitcoin Be Hacked?
Keiser distinguishes between theory and reality.
Bitcoin’s security relies on the SHA-256 hashing algorithm, which operates at such a massive computational scale that hacking it is not technologically feasible. Beyond that, economic incentives make attacking the network irrational.
10. Will Quantum Computers Break Bitcoin?
Keiser says Bitcoin is already designed to adapt.
If computing power increases — quantum or otherwise — Bitcoin’s difficulty adjustment mechanism scales accordingly. The system automatically adapts to changes in computational strength.
11. Is Bitcoin Just Another Bubble?
Keiser flips the narrative.
He argues Bitcoin is the only major asset not in a bubble, while fiat currencies, stocks, and bonds are historically overinflated. In his view, Bitcoin’s rise reflects capital escaping these bubble-prone systems.
12. Does Satoshi Own Too Much Bitcoin?
Satoshi Nakamoto’s wallets hold a large amount of Bitcoin — but Keiser says that’s irrelevant.
Those coins remain untouched. Even if they were sold, Keiser argues that Bitcoin’s market size today — and its projected growth — would absorb the impact.
13. Will Governments Ban Bitcoin?
Keiser says governments can’t ban Bitcoin — only themselves.
He points to countries that attempted bans and later reversed course. Instead of banning Bitcoin, governments are now competing in what he calls a global hash war, actively mining and accumulating it.
14. Is Bitcoin Too Volatile to Be Money?
Keiser compares volatility to surfing.
For those who understand Bitcoin, volatility is a feature, not a flaw. He argues that mastering volatility is part of understanding sound money — and that critics simply haven’t learned how to ride the wave. I discussed in a previous article that Bitcoin is far less volatile than you might think.
15. Was Bitcoin Created by the CIA or NSA?
Keiser clarifies that while the NSA helped develop SHA-256, it’s only one component of Bitcoin’s open-source stack.
Many foundational technologies were initially government-funded, but Bitcoin itself is fully open source, decentralized, and not controlled by any agency.
Bottom Line
Whether you agree with Max Keiser or not, his responses highlight why Bitcoin debates remain so polarized. As adoption grows and misconceptions persist, voices like Keiser’s continue to shape the global conversation around what Bitcoin is — and what it isn’t.
I personally feel that the more I understand Bitcoin, the more confident I feel in it — the technology, the decentralization, and the network. You’ll always fear Bitcoin if you never understand it and instead believe what critics say.
Leave a Reply
You must be logged in to post a comment.