Backlash from the Bitcoin Community
Australian Senator Gerard Rennick faced backlash from the Bitcoin community after he labeled Bitcoin a Ponzi scheme, questioning its worthiness due to its lack of edible value. In a post on May 23, he stated,
“You can’t eat Bitcoin,”
in response to a user who raised concerns about his comments amidst Bitcoin reaching a historic price of $111,970 on May 22.
Rennick’s Predictions and Claims
While Rennick predicts that Bitcoin may eventually soar to $1 million, he argued that its nature as a Ponzi scheme relies on investment inflows from firms like BlackRock into this limited-resource digital asset. Rennick insisted that Bitcoin generates “absolutely nothing,” emphasizing Australia’s need for tangible engineering capabilities rather than financial manipulation.
Community Reactions
Reactions from Bitcoin enthusiasts were swift and scathing. The Australian Bitcoin Industry Body (ABIB) expressed that Rennick’s views reflected a significant misunderstanding of the cryptocurrency. They warned that such misconceptions lead to misrepresentations, ultimately resulting in flawed policy decisions.
Laura Shin, the host of the Unchained podcast, pointed out the irony, questioning if Rennick would oppose the internet for similar reasons, since it also cannot be consumed. Jimmy Kostro, a member of the Bitcoin Marathon team, sarcastically suggested that Rennick’s understanding of Bitcoin seemed shallow and would not age well.
Rennick’s Retaliation and Broader Context
In the face of these criticisms, Rennick asserted that he was not obligated to clarify his position, criticizing the Bitcoin community for seeking validation from politicians, whom they often claim to oppose.
This isn’t the first instance of the Bitcoin community pushing back against negative remarks from public figures. Recently, Arizona Governor Katie Hobbs faced significant criticism after vetoing a bill that would have permitted the state to acquire Bitcoin as part of its official reserves. Bitcoin advocate Jameson Lopp noted that Rennick’s comments would likely be viewed unfavorably over time, while Anthony Pompliano expressed disbelief at a politician’s capacity to influence investment choices.
Lawyer Andrew Gordon added that a greater understanding of Bitcoin and cryptocurrency among elected officials is essential as these assets are integral to the future market landscape. The pushback extends to other recent government actions, such as a decision to move $1.9 billion in Bitcoin to Coinbase, further igniting the community’s vigilance against government skepticism towards cryptocurrencies.
