Australian Senator Gerard Rennick has issued a strong critique of Bitcoin, stating that the cryptocurrency is a classic financial pyramid scheme. According to him, the value of Bitcoin is artificially inflated by large institutional investors, such as BlackRock, who are actively investing in this asset.
This is reported by Business • Media
Senator’s Statements on Bitcoin Risks
Following a significant rise in Bitcoin’s price at the beginning of last week, on May 20-21, 2025, Rennick emphasized that the asset’s price could even reach one million dollars. However, the politician is convinced that the reason for such growth lies in a “Ponzi scheme,” where large companies, including BlackRock, continue to pour more and more money into a product with limited supply.
“Why? Because it’s a Ponzi scheme, where BlackRock [the issuer of the largest spot Bitcoin ETF] will continue to pump more and more dollars into a commodity with limited supply.”
Rennick also highlighted that Bitcoin produces nothing and has no real value, and those who invest in cryptocurrency do not create any tangible goods. He stressed the need for Australia to have specialists in engineering and to develop infrastructure that meets the basic needs of the population, such as energy, water supply, and transportation.
Public Discussion and Community Reaction
In response to a question about whether the senator is against the internet, since it also cannot be consumed, Rennick noted that he does not consider the internet a solution to all problems. He added that Bitcoin supporters mistakenly grant it the status of a universal answer to financial difficulties, whereas the foundation of economic stability should be loans backed by real goods and services. According to him, regardless of Bitcoin’s value, the key is a country’s ability to provide itself with necessary resources.
His position has sparked an active discussion among representatives of the Bitcoin community in Australia. Some users pointed out that in countries with high inflation and ineffective monetary policies, such as Argentina, Bitcoin is seen as an alternative. Meanwhile, commentators expressed concern that similar views may be held by other Australian lawmakers, which could impact regulatory initiatives in the cryptocurrency sector.
Previously, Coinbase urged the Australian government to implement clear legislation regarding cryptocurrencies, warning that without reforms, the country risks losing its position in the market. However, the Australian government continues to maintain a cautious policy and currently has no plans to create state reserves of cryptocurrencies, as the USA and some other countries have done.