The philosophy and politics behind blockchain and Bitcoin: from technology to ideology

Blockchain is often hailed as a revolutionary technology with grand promises: transparency, objectivity, and an absence of human error. But is it really? What appears to be a neutral system is actually shaped by historical ideologies, mysticism, and religious beliefs, researcher Inte Gloerich writes in her PhD dissertation ‘Reimagining the Truth Machine: Blockchain Imaginaries between the Rational and the More-than-Rational’.

First things first: what exactly is blockchain?

Blockchain is perhaps best known as the technology behind the cryptocurrency Bitcoin. It is a system where transaction data or other information is stored in digital ‘blocks’ that link together to form a chain. There’s no central authority in charge. Instead, a network of users oversees the system, and any changes must be approved by others. This approval process is often determined through an algorithmic ‘lottery.’

Since no single person controls a blockchain, it is perceived as a secure and transparent system. And because technology and algorithms play a key role, human factors and emotions are supposedly removed from the equation, which makes the system neutral and objective – or so the thinking goes.

Blockchain, power, and neocolonialism

Despite the belief that blockchain limits individual influence, reality tells a different story, says Gloerich. “Even in the blockchain system, power tends to concentrate. Just look at the impact of figures like Elon Musk and Donald Trump. With a single social media post, they influence crypto markets and financial trends.”

“Proponents often claim blockchain creates equality and erases traditional power structures, but that is not the case. Instead, it often reinforces existing global power dynamics and economic inequalities. Take Bitcoin investors, for example. Many seek opportunities in emerging economies where crypto is seen as a possible path to prosperity. However, one can argue that this can also be seen as a new form of financial imperialism, where power still rests with wealthy Western venture capitalists.”

Blockchain often reinforces existing global power dynamics and economic inequalities.

Gloerich also highlights blockchain projects countries like the United States initiate in the Global South. “Although these projects are presented as progress, they are, in fact, a covert means of expanding geopolitical influence.” Power is unevenly distributed worldwide, she argues, and the legacy of centuries of colonial structures is still evident in the tech industry.

Bitcoin as the Holy Grail

“There are clear connections between blockchain and libertarian or far-right ideologies,” Gloerich notes. “Some advocates dream of a society driven by autonomy, self-governance, and free markets.”

“Within the Bitcoin community, for instance, there is a radical faction that fully embraces these ideals. For them, Bitcoin is the one and only ‘pure’ path, almost like a religion. Religious narratives depicting Bitcoin as the chosen currency have been created, with followers believing there is a kind of divine reward for them. They dismiss other cryptocurrencies as ‘shitcoins’, as they call them, and aim to eliminate any alternatives to what they see as ‘the greatest good.’”

Objectivity, blockchain, and the Enlightenment

The idea that blockchain is objective has deep roots in Western Enlightenment thinking, Gloerich explains. “It connects to the philosophy of 17th-century thinker René Descartes, for example, who saw emotions as human flaws that obstruct the finding of absolute truth. According to this view, ‘true rationality and objectivity’ require eliminating all human elements, such as emotions.”

“Since the Enlightenment, Western society has valued ‘the rational’ above other forms of knowledge. Over time, technology has come to be seen as the pinnacle of this emotionless, rational thinking. Blockchain enthusiasts share this belief. Within their community, some see blockchain as an objective ‘truth machine’, a tool to cut through the confusion of today’s post-truth era, where facts and fake news intermingle.”

But Gloerich argues this belief is deeply flawed. “Technology is always developed for specific purposes and by specific people. It is never neutral, and blockchain is no exception. The ‘truths’ that blockchain produces are selective and the selection process is shaped by existing power structures – which it ultimately helps to sustain.”

Technology is never neutral, and blockchain is no exception.

How rational and neutral is blockchain really?

Gloerich’s research uncovered many more examples showing why ‘perfect rationality’ is a myth. “Blockchain culture contains many mystical and spiritual elements, including the near-religious devotion of radical Bitcoin followers I mentioned earlier.”

“Some advocates treat blockchain almost as a sacred technology. They see it as the chosen system, and some even revere its creator, Satoshi Nakamoto, in an almost messianic way. Moreover, astrology and spiritual approaches are also surprisingly popular in attempts to predict the volatile crypto market.”

Ultimately, blockchain is much less neutral and objective than its proponents claim, Gloerich concludes. Beneath the surface of decentralisation, power structures persist that reinforce rather than disrupt existing inequalities. And despite its claims of rationality, the blockchain world is full of mysticism and ideological beliefs.

In her research, Gloerich places her analysis of blockchain technology within the broader historical entanglement of power and knowledge in the West. By placing blockchain in Its historical context, she demonstrates that the system isn’t as revolutionary as is often claimed. Instead, in many ways, it continues many of the same ideas, power dynamics, and structures that have existed for centuries.