Cardano founder Charles Hoskinson has issued a stark warning, claiming the global financial system is a pyramid scheme headed for collapse.
He shared this view on a recent livestream. In it, he mentioned several crypto-related initiatives and provided a broader assessment of the global financial landscape.
The global financial system works like a pyramid scheme
During the discussion, Hoskinson argued that the modern financial system is very similar to a pyramid scheme. He explained that the system survives by continually transferring debt from one sector to another, rather than relying on true economic repayment. This creates an illusion of stability while the potential risks continue to increase.
In particular, he highlighted the huge global debt, estimated at approximately $338 trillion. To him, the extraordinary numbers are proof that the system is far beyond a realistic path to repayment. He warned that this number is not only unmanageable today, but is accelerating towards $500 trillion. “Nobody can pay it back,” Hoskinson said.
According to Hoskinson, debt is no longer treated as a real obligation. Used to keep the system stable in the short term. Governments refinance old debt with new debt, central banks inject liquidity, and financial institutions repay debt. These actions hide system vulnerabilities.
Interestingly, Hoskinson compares this constant shuffling to a Ponzi scheme, which only works as long as it keeps expanding, not because it has any real value.
Hoskinson envisions the collapse of the global financial system
Hoskinson believes this approach will only delay financial collapse, not prevent it. As debt grows faster than global productivity, the system becomes more fragile. He echoed concerns expressed by other experts, warning that rising debt levels could push the global financial system toward a major crisis.
JUST IN: #Cardano $ADA Founder Charles Hoskinson said: “We know that the global financial system is a pyramid scheme and that there is a global debt of $338 trillion, which is unpayable and reaches $500 trillion, an astronomical amount that no one can pay back. We are headed for a global collapse.” pic.twitter.com/8Go0DDKNf4
— Angry Crypto Show (@angrycryptoshow) December 18, 2025
In response, some see decentralized systems like blockchain and cryptocurrencies as a potential alternative to protect against growing debt problems.
Can Bitcoin and cryptocurrencies be the savior?
For example, in June, Financial Literacy author Robert Kiyosaki recommended that individuals invest in Bitcoin to build wealth when the global debt bubble finally bursts.
Similarly, CNBC's Mad Money host Jim Cramer urged US residents to consider cryptocurrencies as the country's debt exceeds $37.63 trillion.
Additionally, cryptocurrency advocate Sen. Cynthia Lummis has framed national ownership of Bitcoin as a potential strategy to address the U.S. debt. She suggested that with 1 million BTC, the US could pay off half of its debt over the next 20 years.
Notably, President Donald Trump also shares this view and has already signed an executive order establishing the Strategic Bitcoin Reserve (SBR).
