Australian Senator Calls Bitcoin a Ponzi Scheme

Australian Senator for Queensland Gerard Rennick, who has led the populist People First Party since 2024, has criticized Bitcoin, calling it a financial pyramid that grows due to speculation by major financial players.

His comments came after social media user X asked him to explain the first cryptocurrency’s recent all-time high of $112,000 on May 22. Rennick not only dismissed the positive price dynamics, but also suggested that BTC could rise to $1 million, as he believes it is a Ponzi scheme where large management companies, including BlackRock, continue to invest more money in an asset with a limited supply.

"This is a Ponzi scheme run by big companies. BlackRock is putting more and more dollars into a fixed-supply product," he said.

The senator also stressed that Bitcoin does not bring any real value to the Australian economy, unlike key industries such as energy, water and transport. He concluded by saying that Bitcoin cannot even be eaten, hinting at its lack of material value.

The Australian Bitcoin Industry Body (ABIB), a local organization representing crypto traders and developers, criticized Rennick’s comments, saying the politician lacked an understanding of blockchain technology and the economic potential of bitcoin. ABIB said government officials’ misconceptions about cryptocurrency could lead to overregulation that would hinder the development of digital assets in the country.

Earlier, US spot Bitcoin ETFs recorded a record trading volume of $25 billion for the week from May 19 to May 23, 2025, which was the highest figure since the beginning of the year.