Advertisement
Australian Senator Labels Bitcoin a “Ponzi Scheme” That “Produces Nothing”, Despite $1M Prediction
- Senator Gerard Rennick called Bitcoin a Ponzi scheme, claiming it would hit US$1 million due to artificial pumping by institutions like BlackRock, and mocked its utility by saying it “can’t be eaten”.
- His comments triggered backlash from Bitcoin advocates, including Laura Shin and the Australian Bitcoin Industry Body, which defended BTC’s role in innovation and national resilience.
Australian Senator Gerard Rennick has reignited tensions with the Bitcoin community after calling the asset a Ponzi scheme and dismissing its utility on the grounds that it “can’t be eaten”.
It all started with a thread on X by Tyler Green, who asked Senator Rennick if he had any comments regarding BTC’s parabolic rise in the buildup to Trump’s victory in November of 2024. “Any special comments? You seem to know everything there is to know on the subject, mate?”, Green sarcastically stated, to which Rennick responded:
Yes I do – 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.
Gerard Rennick, Australian Senator. Unsurprisingly, The remark triggered a wave of responses from Bitcoin proponents. Laura Shin, host of the Unchained podcast, shot back: “You also can’t eat the internet, so do you oppose that too?” Others, including Bitcoin Marathon’s Jimmy Kostro, mocked Rennick’s grasp of crypto: “Please enlighten us with more of your deep and nuanced understanding of Bitcoin.”
The spat marks only a slice of the extended online fight that’s unfolded since Rennick’s original outburst. The backlash grew large enough to draw in the Australian Bitcoin Industry Body (ABIB), which issued a formal response condemning the senator’s statements:
This isn’t about whether Australians can use Bitcoin — we already do. This is about whether our government is capable of understanding how Bitcoin can enrich the nation, drive innovation, and build long-term resilience for Australians.
Australian Bitcoin Industry Body Rennick was unmoved by the backlash, responding:
It’s pathetic how the Bitcoin community needs reassurance from a politician — the very people they claim they want to be free from. I don’t need to explain anything.
Gerard Rennick, Australian Senator. Read more: Semler Scientific Raises More Money to Buy 455 Bitcoin Despite Financial and Legal Challenges
The Outlook in Australia
Most Aussies are already aware of how complex the crypto situation is, so to speak. There’s a lot of federal policy, and a fragmented environment for businesses, creators, and users.
But things took an interesting turn recently (at least for Bitcoin) when a Victorian magistrate ruled that Bitcoin is comparable to Australian dollars, exempting them from capital gains tax. Not that fast, though. While the ruling may have big implications for the country, it’s unlikely that the ATO would reverse course on its current policies regarding crypto taxes.
On an interesting note, Prime Minister Anthony Albanese also appointed Andrew Charlton as assistant minister for the digital economy, artificial intelligence, and emerging technologies, an event welcomed by many Australian crypto advocates.
Related: Pyth Network Takes a Hit Following Token Unlock—Can It Bounce Back?
Advertisement
Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
