Bitcoin has a controversial reputation, but in this essay, I argue that Bitcoin is actually a pretty cool thing; it could even be described as the hippie movement of the digital generations.

Mainstream media often portrays Bitcoin purely as speculation, with headlines focusing on price fluctuations or painting it as an environmental disaster. It has frequently been declared dead and buried, only to rise again—each time, it's labeled as highly risky and suspicious as a whole. Then there are those who find blockchain fascinating in general but dismiss Bitcoin as outdated, claiming it will soon be replaced by a new cryptocurrency (often one controlled by the very author making the argument). Let’s take a moment to consider why Bitcoin is interesting and how it can drive broad societal change, much like the hippie movement once did. Bitcoin is a global decentralized monetary system operating on a peer-to-peer network. Since nearly all of humanity lives within an economic system based on money, it’s easy to see how an overhaul of the financial system could have a profound impact across different aspects of society. Bitcoin differs from traditional money through several unique characteristics: it is scarce, neutral, decentralized, and completely permissionless. There is no central entity—such as a company—that develops and markets Bitcoin, meaning it cannot be corrupted.

Bitcoin is an open digital network, much like the internet. Due to its lack of a central governing entity and its organic origin, Bitcoin can be considered a commodity, whereas other cryptocurrencies resemble securities, comparable to stocks. Bitcoin’s decentralized nature makes it geopolitically neutral. Instead of being controlled by a central authority, it operates under predefined, unchangeable rules. No single entity in the world has the ability to arbitrarily influence decision-making within the Bitcoin network. This characteristic is particularly beneficial in today’s political climate, where global uncertainty is heightened by unpredictable leaders of major powers. The permissionless nature of Bitcoin and its built-in resistance to censorship are crucial for individuals living under unstable conditions. Bitcoin is used to raise funds for politically persecuted activists and for charitable purposes in regions where financial systems have been weaponized against political opponents or used to restrict people's ability to flee a country. These are factors that may not immediately come to mind in Western nations, where such challenges are not commonly faced. Additionally, according to the World Bank, an estimated 1.5 billion people worldwide still lack access to any form of banking services.

Mining is the only way to ensure that no one can seize control of the Bitcoin network or gain a privileged position within it. This keeps Bitcoin neutral as a protocol, meaning a set of rules without leaders. It is not governed in the same way a company is, where ownership of shares dictates control. Miners earn the right to record transactions in Bitcoin’s ledger by continuously proving that they have performed work to obtain that right. This proof-of-work algorithm is also one reason why Bitcoin has spread so organically. If recording new transactions were free, we would face a problem similar to spam: there would be an endless number of competing transactions, making it impossible to reach consensus on which should officially become part of the decentralized ledger. Mining can be seen as an auction for adding the next set of transactions, where the price is the amount of energy expended. Using energy for this purpose is the only way to ensure that mining remains globally decentralized while keeping the system open and permissionless—free from human interference. Bitcoin’s initial distribution was driven by random tech enthusiasts around the world who mined it as a hobby, using student electricity from their bedrooms. This is why Bitcoin’s spread can be considered organic, in contrast to a scenario where it was created by a precisely organized inner circle that typically would have granted itself advantages before the launch.

If energy consumption is considered concerning, the best regulatory approach would be to create optimal conditions for mining in Finland, where over half of energy production already comes from renewable sources. Modern miners are essentially datacenters, but they have a unique characteristic: they can adjust their electricity consumption seamlessly and instantly without delay. This creates synergy with renewable energy production, which often experiences fluctuations in supply. The demand flexibility offered by miners provides strong incentives to invest increasingly in renewable energy facilities. Miners can commit to long-term projects as last-resort consumers, making investments in renewables more predictable and profitable. Additionally, like other datacenters, miners produce heat as a byproduct. As a thought experiment, they could also be considered heating plants, with a secondary function of securing the Bitcoin network. In Finland, heat is naturally needed year-round. This combination of grid balancing and waste heat recovery would be key to Europe's energy self-sufficiency. Wouldn't it be great if the need to bow to fossil fuel powers for energy could be eliminated? Unfortunately, the current government has demonstrated a lack of understanding of these positive externalities by proposing tax increases on electricity. The so-called fiat monetary system also deserves criticism in Western nations, even though its flaws are not as immediately obvious as elsewhere. It is the current financial system in which certain privileged entities control the issuance of money as if by divine decree, which is what the term fiat (command) refers to. The system subtly creates and maintains inequality.

The Cantillon effect is an economic phenomenon in which entities closer to newly created money benefit at the expense of those farther away. Access to the money creation process is determined by credit ratings and loan terms, as fiat money is always debt. The Cantillon effect is a distorted version of the trickle-down theory, where the loss of purchasing power in a common currency gradually moves downward. Due to inflation, hard assets such as real estate, precious metals, and stocks become more expensive, just as food prices rise in stores. This process further enriches the wealthy while deepening poverty. The entire wealth of lower-income individuals is often held in cash or savings, which are eroded by inflation much like a borrowed bottle of Leijona liquor left out too long. Inflation is usually attributed to a specific crisis, but over the long term (spanning decades), monetary inflation—the expansion of the money supply—plays a significant role. Nobel Prize-winning economist Paul Krugman, known for his work on currencies, describes inflation in his book The Accidental Theorist as follows, loosely quoted: "It is really, really difficult to cut nominal wages. Even with low inflation, making labor cheaper would require a large portion of workers to accept wage cuts. Therefore, higher inflation leads to higher employment." Since no one wants to voluntarily give up their salary in nominal terms, the value of wages must be lowered in real terms by weakening the currency in which they are paid. Inflation effectively cuts wages—or, in other words, makes labor cheaper. This is one of the primary reasons why inflation is often said to have a "stimulating" effect on the economy.

It does seem somewhat unfair that employees effectively subsidize their employers’ labor costs to facilitate new hires, doesn’t it? Not to mention the inequities faced by the Global South in the form of neocolonialism, where Cantillon advantages are weaponized through reserve currencies like the US dollar or the French franc. This follows the exact same pattern, just on a larger scale. The Human Rights Foundation (hrf.org) has explored the interconnection between the fiat monetary system and neocolonialism in its publications, advocating for Bitcoin as part of the solution. Inflation can also be criticized from an environmental perspective. Since it raises time preference, it encourages people to make purchases sooner rather than delay them. As Krugman put it in the same book, “Extra money burns in your pocket.” Inflation thus drives consumption while reducing deliberation—it’s the fuel of the economy. If the goal from an environmental standpoint is to moderate economic activity, the first step should be to stop adding fuel to the fire. The impact of inflation on intergenerational inequality and the economic uncertainty faced by younger generations is rarely discussed. Boomers have benefited from the positive effects of the trend sparked by the Nixon shock in 1971, such as wealth accumulation in real estate and inflation-driven economic booms. Zoomers, meanwhile, are left to either fix the problems of the current system or find themselves searching for a lifeboat.

Bitcoin emerged as part of a long developmental continuum within the discussion forums of rebellious programmers known as cypherpunks, or encryption activists. It is an integral part of internet history and specifically a counterculture movement. Around Bitcoin, grassroots activists and self-organized communities still thrive, fostering an atmosphere that is welcoming, inspiring, and—above all—hopeful, which feels rare in today’s world. Although the rush of suits and traditional financial giants into Bitcoin through ETF funds a year ago may have painted it as opportunistic and dull in the headlines, delving into its history and culture reveals ever-fascinating angles and new layers within the Bitcoin sphere. Yet, at its core, Bitcoin is simply money. It possesses all seven characteristics required to meet the definition of money: it is easily divisible, transferable, recognizable, durable, fungible, uniform, and straightforward to receive. It serves as a foundation on which coders, startup enthusiasts, politicians, financial executives, activists, and anarchists alike can build. The only truly common denominator among the broad spectrum of Bitcoin users is curiosity—openness to new ideas. It merely requires the ability to recognize potential in an alternative system and a willingness to embrace fundamental change. Bitcoin itself is the most inclusive system in the world, as it is literally impossible to marginalize or exclude its users. It is a tool for peaceful and voluntary collaboration, designed so that violence and manipulation are rendered impossible in its code.

Pretty punk in the middle of an era of polarization and division, wouldn’t you say?

The original author (not me) is the organizer of the Bitcoin conference held in Helsinki, as well as a founding member and vice chairman of the Finnish Bitcoin Association. More information about the event can be found at: https://btchel.com and https://njump.me/nprofile1qqs89v5v46jcd8uzv3f7dudsvpt8ntdm3927eqypyjy37yx5l6a30fcknw5z5 ps. Zaps and sats will be forwarded to author!