May 23, 2025 – Australian Senator Gerard Rennick drew sharp criticism from the cryptocurrency community after he made a controversial remark on social media claiming that Bitcoin “cannot be consumed.” His comment sparked widespread backlash, especially among advocates of digital currency, who argued that it revealed a fundamental misunderstanding of Bitcoin’s purpose and value.
The Australian Bitcoin Industry Body (ABIB) responded swiftly, emphasizing that Bitcoin is not intended to be a consumable good but rather a hedge against inflation. They noted that Bitcoin, with a global market capitalization exceeding $2 trillion, serves as a digital store of value. ABIB warned that such misconceptions, if held by policymakers, could lead to regulations that hinder technological innovation in Australia.
Bitcoin’s Role Misunderstood
Bitcoin operates on a decentralized blockchain network that enables secure, borderless transactions. As interest in digital assets grows and institutional adoption expands, the value of the crypto market has surged, according to CoinMarketCap. Yet, Senator Rennick’s comments appeared to dismiss the sector’s growing economic significance.
The ABIB took particular issue with Rennick’s oversimplification. “Bitcoin is not food, but it can help secure food in the future,” the organization stated, referencing its potential to preserve purchasing power over time. They argued that unlike fiat currencies, which can lose value due to inflation, Bitcoin helps individuals retain their wealth and potentially reduce costs tied to traditional banking systems.
Community Pushes Back
Supporters on social media echoed ABIB’s stance. Many pointed out that while Bitcoin is not edible, it offers a powerful financial tool for long-term economic security. One user noted that Bitcoin’s increasing value makes it an effective asset for protecting savings. Another called on Rennick to reconsider his position, arguing that cryptocurrencies foster both innovation and economic resilience.
Senator Rennick, a representative from Queensland, has expressed skepticism about digital currencies in the past. His views are in line with his broader political goals, including plans to form a new political party aimed at supporting everyday Australians. However, critics say his rejection of Bitcoin fails to acknowledge its global adoption and growing importance.
Innovation at Risk
The clash highlights a widening gap between traditional policymakers and the rapidly evolving crypto sector. ABIB warned that mischaracterizing Bitcoin could undermine Australia’s potential to lead in blockchain development. They urged lawmakers to examine how the technology might boost economic stability and innovation.
The debate is part of a larger global conversation about Bitcoin’s economic role. Supporters argue that cryptocurrencies offer financial independence, especially in regions with unstable fiat systems. Data from Blockchain.com shows that Bitcoin’s daily transaction volume often exceeds $30 billion, reinforcing its use as both a store of value and a transaction method.
A Call for Education and Policy Reform
Opponents of Rennick’s view argue that Bitcoin’s decentralized structure reduces reliance on central banks, a fact ignored in his remarks. ABIB warned that Australia risks falling behind other nations if it does not explore the benefits of digital currencies. They advocated for thoughtful policy development to ensure Australians are equipped to face future financial challenges.
As more countries and corporations adopt Bitcoin—El Salvador recognizing it as legal tender and companies like Tesla adding it to their balance sheets—the senator’s statement stands in stark contrast to the direction of global finance. This growing divide suggests an urgent need for better understanding and informed dialogue between government officials and the tech community.
In conclusion, the controversy has prompted renewed calls for crypto education among policymakers. ABIB stressed the importance of understanding Bitcoin’s function to craft effective regulations. Failing to do so, they warned, could alienate a rapidly growing community of digital asset users and stifle Australia’s role in the next wave of financial innovation.
