Australian Senator Gerard Rennick has sparked backlash among Bitcoin supporters after calling the cryptocurrency a Ponzi scheme and downplaying its worth because it isn’t something you can physically consume.
“You can’t eat Bitcoin,” Rennick stated in a May 23 post on X, replying to a user who challenged his views after Bitcoin surged to a new record of $111,970 on May 22.
Despite predicting Bitcoin could eventually reach $1 million, Rennick dismissed it as a manipulated asset, saying, “It will get there because it’s essentially a Ponzi scheme. BlackRock will keep injecting capital into a scarce asset to drive up the price.”
He continued, questioning Bitcoin’s practical value: “What does this actually produce? Nothing. Australia needs real engineers, not financial ones.”
His comments didn’t sit well with the Bitcoin community. The Australian Bitcoin Industry Body (ABIB) criticized Rennick, saying his remarks reflect “a fundamental misunderstanding” of the digital asset.
“This kind of misunderstanding is dangerous—it leads to misrepresentation, which then results in poor policy decisions,” the ABIB added.
Others in the crypto space quickly chimed in. Laura Shin, host of the Unchained podcast, remarked, “You can’t eat the internet either—do you oppose that too?” Jimmy Kostro, team lead at Bitcoin Marathon, said, “This will age like milk. Please keep sharing your deep, expert insights on Bitcoin.”
Rennick later responded to the wave of criticism, saying he doesn’t owe anyone an explanation. “It’s laughable that the Bitcoin crowd needs validation from a politician—the same people they claim to want independence from.”
This isn’t the first time the Bitcoin community has pushed back against political figures expressing anti-crypto sentiment. Just weeks ago, Arizona Governor Katie Hobbs faced heavy criticism after vetoing a bill that would have allowed the state to hold Bitcoin in its reserves.
Jameson Lopp, cypherpunk and co-founder of Casa, simply commented, “This will not age well.” Bitcoin investor Anthony Pompliano added, “It’s shocking how some politicians believe they’re qualified to make financial decisions for others.” Crypto attorney Andrew Gordon weighed in too, stressing the need for “elected officials who understand that Bitcoin and crypto are the future.”
Similarly, the U.S. government faced a wave of criticism from the crypto world when it moved $1.9 billion worth of Bitcoin to Coinbase in December 2024.
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