Australian Senator Gerard Rennick ignited controversy by labeling Bitcoin a “Ponzi scheme” during a public X post, triggering immediate backlash from the country’s crypto community.
His comments come at a time when Bitcoin is gaining wider global adoption and institutional interest, and were quickly condemned by industry players, users, and digital asset advocates across Australia.
Australian Senator’s Remarks Cause Backlash
Crypto groups, including Blockchain Australia, criticized the remarks as outdated and misinformed, arguing that such rhetoric undermines the country’s potential to be a leader in digital innovation.
Many users pointed out that Bitcoin operates on a decentralized, transparent protocol with no central authority or guaranteed returns—traits that differ fundamentally from classic Ponzi schemes.
The backlash underscores the growing tension between political skepticism and technological advancement. While Bitcoin remains controversial among some policymakers, its rising adoption worldwide has made outright dismissal harder to justify.
Advocates argue that rather than rejecting the technology outright, lawmakers should focus on education, regulation, and fostering innovation.
Rennick’s comments have reignited debate around digital asset policy in Australia, with some seeing it as a call to action for the crypto sector to better engage with policymakers and promote broader understanding of blockchain’s real-world applications and potential benefits.
Senator Rennick Calls Bitcoin a $1M “Ponzi Scheme” in Provocative Tweet
In a provocative tweet, Australian Senator Gerard Rennick claimed that Bitcoin would eventually reach $1 million—not due to its value or utility, but because it functions like a “Ponzi scheme.”
Responding to a sarcastic comment from a user, Rennick argued that major institutions like BlackRock would continue pouring money into Bitcoin, inflating its price despite its limited supply.
He suggested this artificial demand is unsustainable and likened it to a pump-and-dump scheme. Adding to his criticism, he remarked, “You can’t eat Bitcoin,” dismissing the cryptocurrency’s usefulness and implying it lacks tangible, real-world value.
His comments reflect deep skepticism toward digital assets, particularly their long-term legitimacy and practicality.
The tweet drew immediate criticism from the crypto community, which pointed out that Bitcoin’s decentralized structure, limited supply, and growing adoption differentiate it from traditional Ponzi schemes.
Nevertheless, Rennick’s remarks reignited debate over Bitcoin’s role in the financial system and its perceived risks.
Senator Rennick Says Australia Needs “Real Engineers,” Not Crypto Innovation
Senator Gerard Rennick continued his criticism of Bitcoin by stating, “Australia needs real engineers, not financial engineers,” emphasizing the country’s need for tangible infrastructure like energy, water, and transport over financial innovation.
His remarks implied that efforts in the crypto space divert attention and resources from essential services.
However, the crypto community quickly responded, defending Bitcoin’s technological foundation and potential to improve financial systems.
Industry advocates argued that blockchain development is real engineering, focused on creating secure, transparent, and efficient systems. Many pointed out that embracing digital finance doesn’t conflict with investing in traditional infrastructure.
Instead, they emphasized that innovation in both sectors is crucial for future economic resilience and global competitiveness, especially as other countries advance rapidly in blockchain adoption.