Bitcoin Offers No Real-World Utility, Claims Australian Senator

Bitcoin is a “Ponzi scheme” and a worthless speculative instrument, Australian Senator Gerard Rennick claimed in a provocative post on X. He made the controversial remark in response to a sarcastic post from an X user who asked him to share his “special comments” on cryptocurrency. 

Rennick attributed Bitcoin’s price rally to the influence of major institutional players such as BlackRock and argued that the asset holds no real value, adding, “You can’t eat Bitcoin.”

This remark sparked strong pushback from both the Australian crypto community and international commentators, particularly as it came at a time when BTC had just reached a new all-time high of $111,000. The controversy also unfolded against the backdrop of ongoing debates around Australia’s upcoming crypto regulatory framework, which the government has pledged to introduce by the end of the year.

Related: Australia Launches Crypto Regulation Framework for Sector Clarity

Who Is Gerard Rennick?

Senator Gerard Rennick is a prominent figure on Australia’s conservative political scene. Formerly affiliated with the Liberal National Party, he became the leader of the People First Party in 2024. 

Known for his sharp rhetoric targeting financial and tech elites, Rennick’s stance against Bitcoin is consistent with his broader political messaging. However, his comments did not occur in a vacuum. The Australian government aims to introduce new legislation in the coming months to license crypto companies under the Australian Financial Services Licence (AFSL) framework. 

Related: WhiteBIT Expands Horizons: Launch of The Cryptocurrency Exchange in Australia

In addition, the government is developing new measures to address debanking risks and align domestic rules with global standards, such as the EU’s MiCA framework and Singapore’s Payment Services Act. In this context, Rennick’s position could influence both public opinion and the direction of Australia’s political debate on crypto regulation.

Industry and Community Pushback

Australia’s Bitcoin sector responded with strong criticism following remarks by Senator Gerard Rennick, with the Australian Bitcoin Industry Body (ABIB) describing his position as a “deep misunderstanding.” The organization warned that such statements from public officials risk contributing to flawed and potentially damaging policy outcomes.

Members of the crypto community also pointed to contradictions in Rennick’s stance. In a follow-up comment, the senator downplayed the significance of his own remarks, stating that his opinion doesn’t matter because people can invest however they like. The response only fueled further backlash, with critics accusing Rennick of shirking responsibility and disregarding the influence he holds in shaping public and legislative narratives.