In a recent statement that has ignited an uproar in the cryptocurrency community, Australian Senator Gerard Rennick characterized Bitcoin as a Ponzi scheme and questioned the asset’s inherent value due to its non-tangible nature. His controversial remark, “You can’t eat Bitcoin,” was made on a social media platform after Bitcoin reached an impressive all-time high of $111,970 on May 22.
“Bitcoin will ultimately go to $1 million dollars. Why? Because it’s a Ponzi scheme whereby BlackRock will pump more and more dollars into a supply constrained product,” Rennick asserted. He further argued that Bitcoin, often abbreviated as BTC, produces “absolutely nothing” and emphasized the importance of “real engineers” over “financial engineers” in society.
This perspective has not gone unnoticed. The Australian Bitcoin Industry Body (ABIB) was quick to respond, stating that Rennick’s comments reflect a profound misunderstanding of Bitcoin and its transformative potential. They warned that such misunderstandings could lead to misrepresentations, ultimately resulting in misguided policies.
High-profile figures in the Bitcoin community have voiced their dissent, with Unchained podcast host Laura Shin making a notable point: “You also can’t eat the internet, so do you oppose that too?” This statement effectively highlights the absurdity of comparing Bitcoin’s value to that of edible commodities.
Jimmy Kostro, from the Bitcoin Marathon team, chimed in with a sarcastic response, suggesting that Rennick’s views would not age well.
Rennick’s refusal to engage with the criticism, declaring that he “doesn’t need to explain anything,” adds another layer to the ongoing debate. He criticized the Bitcoin community for seeking validation from politicians, emphasizing their desire for freedom from traditional financial systems.
This incident is part of a broader pattern where the Bitcoin community reacts strongly to disparaging remarks made by influential individuals. Just weeks prior, Arizona Governor Katie Hobbs faced backlash for vetoing a bill allowing the state to hold Bitcoin as part of its official reserves. Prominent figures within the community have voiced the necessity for more informed political representation regarding Bitcoin and cryptocurrency, emphasizing their potential as the future of finance.
As the discussion surrounding Bitcoin continues to evolve, it remains crucial for policymakers and the public to approach these topics with a comprehensive understanding, ensuring that narratives are not skewed by inaccuracies or misconceptions.
