Senator Gerard Rennick expressed his opinion on Bitcoin, calling it a typical pyramid scheme. According to him, the value of this asset is being inflated by large financial institutions, particularly BlackRock. Rennick noted that Australia needs real goods.
This is reported by Finway
In light of the recent surge in Bitcoin’s price, the senator commented on the situation, stating: “Bitcoin is a Ponzi scheme.” He believes that the price of Bitcoin will continue to rise as large financial institutions keep “pumping” it. “Why? Because it’s a Ponzi scheme, and BlackRock will continue to inject more and more dollars into a commodity with limited supply,” he added.
“Bitcoin produces nothing and therefore has no value. Australia needs real engineers, not financial specialists. We need infrastructure that meets basic needs, including energy supply, water supply, and transportation. You can’t feed anyone with Bitcoin.”
When asked whether he is also against the internet since it can’t be eaten, Rennick stated that he does not consider the internet a solution to all problems. He emphasized that the approaches of Bitcoin advocates suggest they see this asset as a solution to all issues related to monetary policy, which is not true. “Secured loans against real products and services — that’s the solution. Whether Bitcoin is worth $10 or $1 million — it doesn’t matter if a country cannot feed itself.”
Rennick’s statement resulted in criticism from the Bitcoin community in Australia, where commentators expressed concern that his views might be shared by other legislators, potentially negatively impacting the regulatory framework of the industry. The exchange Coinbase had previously urged the Australian authorities to establish clear rules for the cryptocurrency market, highlighting that the country risks being left “out of the loop.”
The Australian authorities are taking a cautious approach to cryptocurrencies. They do not plan to create a crypto reserve, despite the example set by the U.S. and some other countries.