Bitcoiners Clap Back After Australian Senator Calls Bitcoin a 'Ponzi Scheme' and Says ‘You Can’t Eat It’

Australian Senator Gerard Rennick sparked backlash from the global Bitcoin community this week after calling the cryptocurrency a Ponzi scheme and dismissing its value with a quip: “You can’t eat Bitcoin.”

Rennick made the comments in a May 23 post on X (formerly Twitter), responding to a user questioning his stance in light of Bitcoin’s recent all-time high of $111,970 on May 22. “Bitcoin will ultimately go to $1 million dollars,” Rennick wrote. “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? Absolutely nothing.”

He went further, claiming that Australia doesn’t need “financial engineers,” but instead “real engineers,” suggesting Bitcoin contributes nothing to the economy.

The remarks immediately drew fire from prominent Bitcoin advocates around the world, who accused Rennick of misunderstanding both Bitcoin and financial innovation more broadly.

“You also can’t eat the internet, so do you oppose that too?” responded Unchained podcast host Laura Shin. Bitcoin Marathon team lead Jimmy Kostro added sarcastically, “Please enlighten us with more of your deep and nuanced understanding of Bitcoin.”

The Australian Bitcoin Industry Body (ABIB) criticized Rennick’s statements as uninformed and potentially harmful. “This matters, because misunderstanding leads to misrepresentation. And misrepresentation leads to bad policy,” the group said in a statement.

Rennick doubled down in a follow-up post, refusing to elaborate on his position. “It’s pathetic how the Bitcoin community needs reassurance from a politician—the very people they claim they want to be free from,” he said.

The crypto community has increasingly mobilized to challenge negative commentary from public figures. Earlier this year, Arizona Governor Katie Hobbs faced similar pushback after vetoing a bill that would have allowed the state to hold Bitcoin in its reserves. And in December 2024, the U.S. government was widely criticized after transferring $1.9 billion worth of Bitcoin to Coinbase, prompting outrage from Bitcoin advocates.

Entrepreneur Anthony Pompliano called Rennick’s remarks “ignorant,” while Casa co-founder Jameson Lopp predicted, “This will age poorly.” Crypto attorney Andrew Gordon summed up the sentiment by saying, “We need more elected officials who understand that Bitcoin and crypto are the future.”