Australian Senator Gerard Rennick drew global backlash from Bitcoin supporters after he labeled Bitcoin a Ponzi scheme. On May 23, Rennick took to social site X, expressing doubts about the value of Bitcoin by comparing it to tangible essential items. Rennick ridiculed Bitcoin for not having any value because one cannot eat it.
Rennick replied to a user who had noticed Bitcoin’s new record value of $111,970 on May 22. He said Bitcoin may one day hit $1 million, however, because leading companies like BlackRock buy up supply. He disparaged this approach by saying that Bitcoin doesn’t create anything for the economy, and Australia would be better served by engineers for actual work than by those working in financial maneuvers.
The remarks outraged people within the BTC community, including experts and leaders who are optimistic about digital currency’s future. The reaction from Australia’s Bitcoin Industry Body (ABIB) came forth quickly, accusing Rennick of not comprehending how Bitcoin works within a global economic context. The body cautioned such misleading concepts tend to create poor-quality and dangerous policymaking.
Bitcoin experts strongly oppose senator Rennick’s comments
Other famous personalities from the crypto community, podcasters, and even chief executives joined in on the online fray. BTC Marathon’s Jimmy Kostro and Unchained Podcast’s Laura Shin publicly criticized Rennick for his strict and limiting views. They drew parallels between his reasoning and previous arguments against the internet when it was developing.
Despite criticism, Rennick brushed aside the objections and declared he had no obligation to disclose any more about his stance. Rennick ridiculed fans of Bitcoin for looking for approval from politicians while proclaiming opposition to political intervention in finance. His statement triggered a new debate about whether political leaders have a complete grasp of new digital finance systems.
Just a few weeks prior, Arizona Governor Katie Hobbs vetoed a bill permitting BTC in state reserves, causing a stir in the crypto community. Most investors and attorneys came out in favor of BTC and insisted legislators have more to learn before turning down new technologies redefining finance.
