Australian Senator Sparks Bitcoin Controversy Calling It Ponzi Scheme

Coin WorldMonday, May 26, 2025 9:09 am ET
1min read

Australian Senator Gerard Rennick has sparked controversy within the Bitcoin community after labeling Bitcoin as a Ponzi scheme. In a recent post, Rennick responded to a user's query about Bitcoin's new record high of around $111,800, stating that Bitcoin is a Ponzi scheme driven by asset managers like

. He argued that Bitcoin's value will ultimately reach $1 million because it is a supply-constrained product into which more dollars will be pumped.

Rennick further criticized Bitcoin, asserting that it and its traders contribute nothing to real-world utility. He emphasized the need for "real engineers" rather than "financial engineers," suggesting that Bitcoin lacks practical value. His comments were met with swift backlash from the Bitcoin community and industry experts.

The Australian Bitcoin Industry Body (ABIB) highlighted that Rennick's remarks reveal a deep misunderstanding of Bitcoin. They warned that misinformed views from public officials could lead to poor policy decisions. ABIB pointed out that the issue is not whether Australians can use Bitcoin, as many already do, but whether the government understands how Bitcoin can benefit the nation. They called for ongoing education and a willingness to learn more about Bitcoin.

Unchained podcast host Laura Shin questioned Rennick's logic, asking if he also opposes the internet since it cannot be eaten. The Senator responded to the criticism by stating that it does not matter what he thinks about Bitcoin, and that individuals should invest as they see fit. He also questioned why the Bitcoin community cares about his opinion, given their desire for less political interference.

Rennick's comments are not the first instance of a public figure facing backlash for their anti-Bitcoin stance. Just a couple of weeks ago, Arizona Governor Katie Hobbs was criticized by the Bitcoin community after vetoing a bill that would have allowed the state to hold Bitcoin as part of its official reserves. This incident underscores the passionate and vocal nature of the Bitcoin community, which often responds strongly to perceived threats or misunderstandings about the cryptocurrency.

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