Aussie Senator Slams Bitcoin as a 'Ponzi Scheme'

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Aussie Senator Slams Bitcoin as a 'Ponzi Scheme', Sparks Backlash

Written by Aaron S.,

Editor-In-Chief

Last Updated: May 26, 2025

Key Takeaways

Senator Gerard Rennick called Bitcoin a "Ponzi scheme" and said it adds little value to Australia’s economy;
He argued Bitcoin adds little to Australia’s economy and said the country should prioritize physical infrastructure and real engineering;
The Australian Bitcoin Industry Body warned that such views show a misunderstanding and risk poor policy decisions.

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Aussie Senator Slams Bitcoin as a 'Ponzi Scheme', Sparks Backlash

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Australian Senator Gerard Rennick caused a stir in a May 23 post on X after describing Bitcoin BTC $108,575.89 as a "Ponzi scheme".

He claimed that Bitcoin’s value would keep climbing due to large investors like BlackRock pushing more money into an asset with a fixed supply.

Senator Rennick added, "You can’t eat Bitcoin", and questioned its usefulness in the real world.

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Currently leading the People First Party, Senator Rennick argued that Bitcoin and its supporters offer little to Australia’s economy. Instead, he said the country should focus on building essential infrastructure like roads, energy systems, and clean water access.

He wrote in a post, "Australia needs real engineers, not financial engineers".

Senator Rennick's remarks drew criticism from the crypto community. In a May 24 post on X, the Australian Bitcoin Industry Body (ABIB) called his comments "a deep misunderstanding".

They warned that public statements like his could lead to poor decisions by lawmakers. ABIB said Australians already use Bitcoin, and the real issue is whether leaders are willing to understand its role in the country’s future.

Senator Rennick, however, questioned why anyone cared about his opinion on Bitcoin in the first place. He wrote in a follow-up post on X, "You’re disappointed about what a politician thinks about Bitcoin? Seriously? Invest as you will".

A recent proposal to make Bitcoin easier to use has sparked fresh discussion, reviving a long-running debate about its smallest units. What did the crypto community say? Read the full story.