Scholars of religion have, thus far, mostly ignored cryptocurrencies, although there has been some discussion of whether Bitcoin (the original and most widely held cryptocurrency) could be considered a religion. As Joseph Laycock notes, however, allegations that Bitcoin is a religion typically serve a rhetorical function, intended either to dismiss its promoters as irrational and dogmatic or to promote it as something good and wholesome (Laycock, “Why are people calling Bitcoin a religion?” in “The Conversation,” 2022, https://theconversation.com/why-are-people-calling-bitcoin-a-religion-175717). Yet the lens of religion, and in particular ritual studies, can help us better understand this new technology and the freedom that its advocates find in it. In this paper I describe what Bitcoin is, discuss the reasons its advocates find it to be liberating, and identify rituals that sustain Bitcoin “maximalists” in spite of the volatility of crypto markets. I argue that investing in Bitcoin can be understood as itself a ritual action that seeks to restructure power relations in the global economy and results in a sense of personal dignity and freedom.
What is Bitcoin? It is a digital, peer-to-peer network that allows users to exchange value directly on a public ledger called the blockchain. Bitcoin miners (i.e., computers) verify these transactions and add them to the chain that constitutes the public ledger, earning small amounts of Bitcoin as a reward for the energy expended to validate transactions. This protocol for verifying transactions and preventing double-spending thus depends upon “proof of work” and the expenditure of energy, which its advocates defend as a feature, not a bug.
Built into the protocol (the code governing the technology) is a limit on the total number of Bitcoin that can ever exist (21 million), which means that it is a deflationary currency. Its decentralized system of accounting makes it immune to interference by banks, governments, or corporations. Since Bitcoin’s creation in 2009, thousands of “alt-coins” with different protocols have been created, and it is important to distinguish Bitcoin and its unique protocol from these other coins. In this paper I focus on Bitcoin, which is the most widely used cryptocurrency and has the most dedicated followers (Bitcoin “maximalists”).
According to a 2021 report from the New York Digital Investment Group, approximately 46 million Americans (or roughly 22% of the adult population of the United States) had invested in Bitcoin as of 2021 (https://www.nydig.com/research/nydig-bitcoin-banking-survey). A more recent report from the Pew Research Center regarding cryptocurrencies more broadly (not just Bitcoin) indicates that some cryptocurrency users have become disillusioned: among those who have ever invested in, traded or used cryptocurrency, 61% say they currently have cryptocurrency, which is down from 69% in 2023, and 39% say they currently do not have any cryptocurrency, up from 31% in 2023 (https://www.pewresearch.org/short-reads/2024/10/24/majority-of-americans-arent-confident-in-the-safety-and-reliability-of-cryptocurrency). This is understandable in light of the highly volatile nature of the crypto market, where prices can fluctuate dramatically.
Bitcoin “maximalists,” however, are resolutely committed to the original cryptocurrency, viewing it as superior to all subsequent cryptocurrencies, and they avoid selling their Bitcoin even when prices crash. Their faith in Bitcoin, I argue, stems from the freedom they find in it: freedom from big banks, inflationary fiat currencies, and oppressive regimes, as well as freedom to view the public ledger, self-custody their assets, and settle anonymous transactions almost instantaneously.
Certain ritualistic behavior reinforces this sense of freedom in the face of the uncertainty of the market, namely: DCA-ing (dollar-cost averaging, or purchasing a small, consistent amount of Bitcoin on a regular schedule regardless of its price), HODL-ing (holding on for dear life, or refusing to sell one’s Bitcoin even when the market crashes, anticipating long-term gains), and stacking sats (a “sat” or “Satoshi” is the smallest unit of a Bitcoin, with one sat equaling 0.00000001 BTC, so this practice encourages the small but steady accumulation of Bitcoin holdings). Bitcoin maximalists analyze market trends and cycles (for example, the impact of “the halving,” when the Bitcoin reward for miners is halved every four years), valuing education and seeking a greater understanding of the technology and the reasons behind its fluctuating prices. The annual Bitcoin Conference attracts hundreds of thousands of Bitcoiners, and a sense of community is sustained through online forums, circulating memes on social media, and local in-person gatherings.
Although these rituals foster a sense of community and shared identity, I argue that they are best understood as attempts to foster a sense of dignity and freedom in the Bitcoiner through concrete actions that restructure power relations in the global economy. In other words, by buying (and holding onto, and encouraging others to buy) Bitcoin, they are engaging in a ritual action that takes power away from oppressive entities (“trad-fi,” or traditional finance) and distributes it through the new “de-fi” (decentralized finance) system. The price of Bitcoin may fluctuate, but Bitcoiners, through ritual engagement with this new technology for storing and exchanging value, establish control over their own lives, assert their value as players in the global economy, and experience a sense of freedom.
The concept of religion has proved rhetorically useful for both advocates and detractors of Bitcoin in their analysis of this new digital technology for storing and exchanging value, highlighting the good and wholesome aspects of religion or its irrational and dogmatic tendencies respectively. But scholars of religion have, thus far, mostly ignored cryptocurrencies. This paper turns to ritual theory to help us better understand this new technology and the freedom that its advocates find in it. I describe what Bitcoin is, discuss the reasons its advocates consider it liberating, and identify rituals that sustain Bitcoin “maximalists” in spite of the volatility of crypto markets. I argue that investing in Bitcoin can be understood as a ritual action that seeks to restructure power relations in the global economy, resulting in a sense of personal dignity and freedom.