Australian Senator Gerard Rennick Calls Bitcoin a Ponzi Scheme and Questions Its Value Because It Isn't Digestible

Australian Senator Gerard Rennick has drawn criticism from the Bitcoin community following his remarks referring to Bitcoin as a Ponzi scheme and questioning the asset's value because it isn't digestible.

Australian Senator Gerard Rennick has drawn criticism from the Bitcoin community following his remarks referring to Bitcoin as a Ponzi scheme and questioning the asset’s value because it isn’t digestible.

Rennick was responding to an X user who questioned his stance after Bitcoin hit a new all-time high of $111,970 on May 22.

Senator Gerard Rennick says Bitcoin will go to $1 million but is a “Ponzi Scheme”

"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.

"What exactly will this product produce? It will produce absolutely nothing and we need real engineers not financial engineers."

Bitcoiners across the world were quick to respond to Rennick’s comments. The Australian Bitcoin Industry Body (ABIB) said Rennick’s remarks about "Bitcoin reveal a deep misunderstanding." The ABIB added:

"His comments about it being a 'Ponzi scheme' are particularly concerning, as they reflect a lack of understanding of the fundamental principles of Bitcoin and its role in the broader financial ecosystem."

Unchained podcast host Laura Shin said, "You also can’t eat the internet, so do you oppose that too?" Bitcoin Marathon team lead Jimmy Kostro said, "This is definitely going to age well. Please enlighten us with more of your deep and nuanced understanding of Bitcoin."

Rennick responded to the criticism and said he doesn’t "need to explain anything."

"It’s pathetic how the Bitcoin community needs reassurance from a politician - the very people they claim they want to be free from," Rennick said.

The Bitcoin community has frequently spoken out when prominent individuals have expressed anti-Bitcoin views.

Only a few weeks ago, Arizona Governor Katie Hobbs experienced backlash from the Bitcoin community after her decision to veto a bill that would have allowed the state to hold Bitcoin as part of its official reserves.

Casa co-founder and cypherpunk Jameson Lopp said, "This will age poorly." Meanwhile, Bitcoin entrepreneur Anthony Pompliano said, "Imagine the ignorance of a politician to believe they can make investment decisions." Crypto lawyer Andrew Gordon said, "We need more elected officials who understand that Bitcoin and crypto are the future."

Similar backlash was seen by the Bitcoin community when the US government decided to transfer $1.9 billion of Bitcoin to Coinbase in December 2024.output: "You can't eat Bitcoin and you can't digest it. So what good is it? It 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. What exactly will this product produce? It will produce nothing and we need real engineers not financial engineers.

Bitcoin is a product that can't be digested by the body. Only products that can be digested by the body have value. This is the thinking of Senator Gerard Rennick, who is known for his outlandish and often contradictory statements.

The senator's remarks come after Bitcoin hit a new all-time high of $111,970 on May 22, prompting an X user to question Rennick's stance on the asset.

"Isn't Senator Rennick a Bitcoin bull? He said it would hit $1 million. Maybe he can provide some technical analysis on why he thinks so," the X user wrote, tagging the senator in his post.

In response, Rennick said that Bitcoin will ultimately reach $1 million because it's a "Ponzi scheme."

"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. What exactly will this product produce? It will produce absolutely nothing and we need real engineers not financial engineers."

Rennick's comments drew criticism from members of the Bitcoin community, who pointed out that the senator's remarks about Bitcoin reveal a deep misunderstanding.

"His comments about it being a 'Ponzi scheme' are particularly concerning, as they reflect a lack of understanding of the fundamental principles of Bitcoin and its role in the broader financial ecosystem," the Australian Bitcoin Industry Body (ABIB) said in a statement.

The ABIB added that Bitcoin is a "durable good" that can be used and enjoyed for a long time, and its value is derived from the demand for it as a store of value and payment network.

"Senator Rennick's flippant remarks about Bitcoin are a distraction from the real issues facing Australians today," the ABIB said. "We urge him to focus his attention on matters that will truly benefit the nation."

Rennick's comments also drew criticism from Unchained podcast host Laura Shin, who said that you can't eat the internet but people still oppose it