Bitcoin originates from fundamental principles rooted in the Austrian school of economics, a school of thought in economics and sociology that promotes market and individual freedom, which developed in the second half of the nineteenth century. Friedrich von Hayek, one of the greatest proponents of this school of thought and Nobel Prize winner in economics in 1974, stated in 1984:

“We shall never have a good money again before we take it out of the hands of government, that is, we can’t take it violently out of the hands of government, all we can do is by some sly roundabout way introduce something that they can’t stop.”

This statement seems to predict what the Cyberpunk movement would create in the following years, leading to what we know today as Bitcoin.

Ideology is a fundamental component of this technology, as evidenced by the message left by Satoshi Nakamoto within the first block of the Bitcoin blockchain, the genesis block. The message contained the headline from The Times of January 3, 2009, “Chancellor on brink of second bailout for banks” highlighting a critical stance towards the traditional financial system and its objectives.

Although the value of Bitcoin is primarily measured in Dollars, it is against this very currency that Bitcoin positions itself on the global stage. The maximum limit of 21 million Bitcoins, released through a programmed and decreasing inflation, contrasts with the frantic printing of dollars, or more generally the printing of FIAT money (a term that derives from Latin meaning “let it be done”, reflecting the government’s authority in determining the value of the currency), which has led to rampant inflation worldwide. This inflation generates imbalances and inequities in its issuance, favoring entities that first gain access to new credit, as illustrated by Richard Cantillon in the 18th century. With Bitcoin, however, distribution is decentralized and based on strict rules and fair incentives, ensuring balance through game theory, a field of study on models of strategic interaction between rational decisions, developed by John Nash in the 20th century. The more computing power is employed without violating global consensus, the more one is rewarded.

This new paradigm ties money to a solid foundation, limiting uncontrolled issuance, in contrast to the dollar, which since 1971, following the Nixon Shock, has abandoned its gold backing. It is a return to origins, a de-virtualization of money. Additionally, Bitcoin’s technology makes transactions faster than traditional interbank transfers, without the need for intermediaries and ensuring uncensorable transactions.

With the imminent arrival of government-issued digital currencies, the CBDCs (Central Bank Digital Currencies), Bitcoin positions itself as a free and non-coercive alternative.