Bitcoin Called “Possible Ponzi Scheme” by Former Maryland Governor

In a fiery defense of Social Security, O’Malley drew a sharp contrast between the U.S. retirement system and cryptocurrency.

“Social Security is not a Ponzi scheme—Bitcoin might be,” he said, rejecting a common talking point used by critics of the public benefits program.

Warning Against Misinformation and Market Disruption

O’Malley argued that a wave of misinformation is threatening Social Security’s reputation. He said political figures like Donald Trump and Elon Musk are working to erode public trust in the program with what he called “big lies.”

He listed several false claims, including:

That undocumented immigrants receive benefits (they don’t). That Social Security pays the deceased (it doesn’t). That the system is doomed or financially collapsing.

“These are lies designed to break public support,” O’Malley warned. “Why? Because Social Security is strong—it runs a surplus. It has a reserve of $2.6 trillion.”

He argued that because Congress would never allow anyone to directly raid those funds, critics are instead trying to undermine confidence in the system.

Comparing Bitcoin to a Ponzi Scheme

In defending Social Security, O’Malley took a swipe at cryptocurrency.

“People say Social Security is a Ponzi scheme. Poppycock! It’s not. Bitcoin might be, but not Social Security,” he said.
O’Malley highlighted Social Security’s track record. It’s never missed a payment in 90 years, and he called it “the most efficient insurance program in the entire world.”

By comparison, Bitcoin has been criticized by some policymakers and economists for lacking intrinsic value, transparency, or regulatory oversight—traits that lead some to compare it to speculative schemes.

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