Australian Senator Gerard Rennick has stirred controversy in the cryptocurrency world after labeling Bitcoin a “Ponzi scheme” and questioning its practical value because “you can’t eat it.”
His comments came in a May 23 post on X, following a user’s query about his stance on Bitcoin after it reached an all-time high of $111,970 on May 22.
“Bitcoin will ultimately go to $1 million dollars. Why? Because it’s a Ponzi scheme whereby BlackRock will pump more and more dollars into a supply-constrained product,” Rennick said in his post. He added, “What exactly will this product produce? Absolutely nothing,” arguing that Bitcoin has no tangible output and suggesting Australia needs “real engineers, not financial engineers.”
His remarks quickly drew sharp criticism from the global BTC community. The Australian Bitcoin Industry Body (ABIB) issued a formal response, stating Rennick’s opinions reflected a “deep misunderstanding” of Bitcoin’s fundamentals. “This matters, because misunderstanding leads to misrepresentation. And misrepresentation leads to bad policy,” the ABIB emphasized.
Bitcoin Advocates Defend the Asset
Bitcoin supporters were quick to defend the cryptocurrency and counter Rennick’s claims. Laura Shin, host of the Unchained podcast, sarcastically noted, “You also can’t eat the internet, so do you oppose that too?”
Others, like Bitcoin Marathon team lead Jimmy Kostro, suggested Rennick’s take would not age well, asking him to elaborate on his views with more depth.
Despite the pushback, Rennick doubled down, brushing off the criticism. “It’s pathetic how the BTC community needs reassurance from a politician — the very people they claim they want to be free from,” he responded. He also insisted he didn’t need to “explain anything.”
The clash reflects a growing pattern of tension between traditional policymakers and digital asset advocates. Bitcoiners frequently call out public figures who oppose or misunderstand the technology.
Not the First Clash
Just weeks before Rennick’s remarks, Arizona Governor Katie Hobbs faced backlash from the crypto community for vetoing a bill that would have allowed the state to include Bitcoin in its official reserves. Jameson Lopp, co-founder of Casa and noted cypherpunk, said her decision would “age poorly.”
Likewise, the U.S. government faced heavy criticism from the BTC community in December 2024 for transferring $1.9 billion worth of Bitcoin to Coinbase, a move many saw as a missed opportunity for sovereign crypto adoption.
For many the community, such government moves and statements only reinforce their belief in the need for decentralized financial systems.
Read More
All News
Floppypepe ($FPPE) is your ticket to the moon. Escape the ordinary and reach for lunar gains with this AI meme token. Secure your spot now before it's too late.
Join Now