Bitcoin and Stoicism

Episode XXI. Block height: 856500. Like Stoicism, Bitcoin stands as the immutable testament to a world where value endures beyond the reach of time and tide.

Aug 13, 2024

Bitcoin stands resilient amidst the tempest of change, a beacon of unwavering truth in a world swayed by the whims of power. It whispers the Stoic creed: True wealth lies not in the fleeting grasp of material gain, but in the steadfast embrace of autonomy and reason. Immutable as the stars, its value is not forged in the fires of greed, but in the quiet strength of a decentralized will, where each block, like each moment, is a testament to the power of enduring principles over the chaos of the external world.

Numerous years on the fiat treadmill have left me exploited, aimless and without purpose. Bitcoin has given me back my autonomy and freedom to live my life in accordance to my virtues, completely decentralized and on my own terms. Bitcoin is stored energy, protection from government theft through inflation. It provides us with the freedom to focus and concentrate our energy on being a better person. Our world today, corrupted by cheap currency, lacks honesty - to yourself and to others. Most people are driven by external things, a fancy car, a nice house, a private jet. However, once you realise that those things won’t give you inner fulfillment, you start realising that the only thing that gives you peace and tranquility is inner freedom.

Along the way, deep into the Bitcoin rabbit hole, I came across Stoic philosophy and realized that there are some interesting parallels between Bitcoin and Stoicism that I want to share with you in this episode because they have helped me a lot in my life and as a person. This is not about perfection, spirituality or wealth, but about progress and becoming a better, more fulfilled self.

“The one thing you can’t escape in life is yourself.” - Victor Frankl

Bitcoin and Stoicism, while first seemingly unrelated, share intriguing philosophical parallels that reflect on the nature of human autonomy, truth, resilience, and value. At their core, both concepts challenge conventional paradigms: Bitcoin through its disruption of traditional centrally controlled financial systems, and Stoicism through its rejection of societal norms and the pursuit of inner virtue. Understanding their connection requires an exploration of how Bitcoin’s decentralized, immutable nature resonates with the Stoic emphasis on individual control, rationality, and the importance of internal over external goods.

The Roots

Stoicism is an ancient philosophy founded around 304 BC by a merchant named Zeno who was shipwrecked on a trading voyage. He lost nearly everything. As Zeno later joked, “I made a prosperous voyage when I suffered shipwreck.” Making his way to Athens, he was introduced to philosophy by the Cynic philosopher Crates and the Megarian philosopher Stilpo, which changed his life. Zeno began to develop his own philosophical system, which he taught at the Stoa Poikile, a public colonnade in Athens. This location would lend its name to the school, "Stoicism," which emphasized living in harmony with nature, cultivating wisdom, and maintaining tranquility through the practice of virtue, regardless of external circumstances.

Stoicism was once one of the most popular civic disciplines in the West, practiced by the rich and the impoverished, the powerful and the struggling alike. In its rightful place, Stoicism is a tool in the pursuit of self-mastery, perseverance, and wisdom: something one uses to live a great life, rather than some esoteric field of academic inquiry. Stoicism is a philosophy designed to make us more resilient, happier, more virtuous, wiser and as a result, better people. Stoics loved wisdom, or virtue, excellence of character, above everything else. For the Stoics, everything comes back to the exercise of reason and the goal of living wisely. True strength consisted of one’s ability to show kindness, not violence or aggression. As I discovered, these Stoic virtues have a lot of similarities to Bitcoin.

Wisdom

“The more we value things outside our control, the less control we have.” - Epictetus

The wisdom of the Stoics emphasizes rationality, self-control, and understanding the nature of things to achieve a life of virtue and inner peace. They taught that true wisdom lies in recognizing what is within our control and acting according to reason, free from the influence of external forces like wealth or power. Bitcoin, as a decentralized and transparent financial system, aligns with this Stoic wisdom by empowering individuals to take control of their own financial destiny, independent of centralized institutions. It encourages a clear-eyed approach to wealth, where value is not dictated by fluctuating central powers but is instead grounded in a system that reflects the Stoic ideals of autonomy, clarity, and resilience. Just as the Stoics sought wisdom in simplicity and self-mastery, Bitcoin offers a way to engage with the world of finance that is both straightforward and self-empowering.

Truth

„It's the truth I'm after, and the truth never harmed anyone. What harms us is to persist in self-deceit and ignorance.” - Marcus Aurelius

Bitcoin’s structure reflects the Stoic concept of logos, or rational order. The Bitcoin network operates on a system of cryptographic proof and mathematical certainty. Every transaction is recorded on a public ledger that is immutable and transparent, which ensures that the system is free from manipulation and corruption. This rational, orderly system echoes the Stoic belief in a universe governed by reason. Stoics believed that by aligning oneself with this rational order - by living in accordance with nature and reason - one could achieve eudaimonia, or flourishing. Similarly, Bitcoin operates in accordance with a set of predefined rules, and those who engage with it do so with the understanding that these rules are impartial and immutable. This creates a financial system that is, in many ways, more aligned with Stoic values than the often arbitrary and unpredictable nature of fiat currencies controlled by human institutions. Code is Law.

Autonomy

“We don’t control external events, we only control our
thoughts, opinions, decisions, and duties.” - Marcus Aurelius

Bitcoin, a decentralized digital currency, emerged in 2009 as a response to the shortcomings of the traditional financial system. It was designed to be money that exists outside governmental or institutional control, providing individuals with direct ownership and the ability to transfer value without intermediaries. This radical departure from centralized banking systems embodies the Stoic principle of autonomy. Stoicism teaches that true freedom comes from within and that external circumstances — such as wealth or social status, are beyond our control and therefore not essential to happiness. In the same way, Bitcoin offers a form of financial autonomy that allows individuals to bypass the constraints imposed by traditional monetary authorities. By using Bitcoin, one exercises a form of economic freedom that aligns with the Stoic ideal of self - sufficiency and independence from external forces.

Time

“Be ruthless with your time.”

Your time is our most precious asset, urging us to use it with intention and focus on what truly matters. They believed that wasting time on trivial pursuits or distractions was a loss that could never be recovered. Bitcoin can be seen as time embodied in digital form, representing the value of work, energy, and resources compressed into a decentralized currency. It allows individuals to store the fruits of their labor in a secure, scarce and accessible format, effectively preserving the value of time spent, preventing it from being stolen by governments through inflation. Thus, Bitcoin transcends being merely a financial tool; it becomes a medium through which time itself is stored, transferred, and valued properly. Memento Mori.

Simplicity

“Wealth consists not in having great possessions, but in having few wants.” - Epictetus

The Stoics embraced a simple life rooted in self-discipline, virtue, and an understanding of what truly matters, focusing on inner peace over external wealth. They believed in living according to nature and maintaining control over one’s own mind, free from the complexities and excesses of the world. Bitcoin, in its simplicity, the Bitcoin White Paper to begin with is only 8 pages, resonates with these Stoic principles by offering a decentralized and transparent financial system that cuts through the intricate web of modern finance. Just as the Stoics sought clarity and control over their lives, Bitcoin provides individuals with direct ownership and control over their assets, free from the influence of centralized powers. This alignment of simplicity and autonomy makes Bitcoin a modern reflection of the Stoic ideal of living in harmony with nature and oneself.

Resilience

"Choose not to be harmed - and you won't feel harmed. Don't feel harmed - and you haven't been." - Marcus Aurelius

Resilience emphasizes enduring hardships with inner strength, adapting to challenges, and maintaining a sense of purpose despite external obstacles. This principles aligns closely with Bitcoin's network resilience, which has demonstrated remarkable durability and adaptability in the face of numerous threats, including regulatory pressures, technological attacks, and market volatility. Just as Stoicism teaches the importance of accepting and overcoming adversity, Bitcoin's decentralized and robust architecture ensures that it continues to function and thrive despite attempts to disrupt or undermine it. The network's ability to recover from challenges and maintain its integrity reflects the Stoic ideal of resilience in the digital age.

Discipline

“Discipline is destiny.” - Ryan Holiday

Discipline centers on self-control, focus, and the pursuit of virtuous actions, regardless of external temptations or distractions. For Bitcoiners, this principle is embodied in their commitment to long-term thinking, financial sovereignty, and the disciplined approach to investing, often referred to as "HODLing" (holding on for dear life). Just as Stoicism advocates for mastering one's desires and emotions, Bitcoiners practice discipline by resisting the urge to sell in volatile markets, staying informed about the technology, and maintaining a steadfast belief in Bitcoin's potential to reshape the financial system. This disciplined approach reflects the Stoic pursuit of aligning actions with a greater purpose, regardless of short-term challenges. We don‘t panic, we buy more and HODL!

Practice

„Progress is not achieved by luck or accident, but by working on yourself daily.“ - Epictetus

To calm your mind through Stoic practices, start each day with a moment of reflection, mentally preparing yourself for the challenges ahead by considering how you can meet them with virtue, patience, and wisdom. Focus on what is within your control — your thoughts, actions, and responses — while letting go of anxiety over what you cannot control, such as the actions of others or external events. Stoics call this practice “Dichotomy of Control”. Incorporate the "View From Above" also called “Zooming out” by visualizing your life as a small part of the vast cosmos, which helps put your worries into perspective and reminds you of the broader context of your existence. This practice fosters humility and a sense of interconnectedness, allowing you to approach daily challenges with a calmer, more balanced mindset.

Throughout the day, keep the Stoic concept of “Memento Mori” — the remembrance of death — close to your thoughts. Reflect on the impermanence of life, not to induce fear, but to deepen your appreciation for the present moment and to prioritise what truly matters. By recognizing the fleeting nature of your own existence, you are encouraged to live more fully and meaningfully, focusing on virtue rather than on fleeting pleasures or external validations. In the evening, engage in journaling to review your actions, asking yourself if you lived according to your values. Sleep for up to 8 hours. Rinse and Repeat.

Conclusion

While Bitcoin and Stoicism originate from a vastly different context — one from the world of modern digital finance and the other from ancient Greek philosophy — they converge on key ideas about wisdom, truth, autonomy, simplicity, discipline, resilience, and the appreciation of time. Both challenge individuals to think critically about what truly matters and to seek freedom through self-discipline and rational engagement with the world. Bitcoin, as a financial system, offers a practical embodiment of Stoic principles, providing a means of economic independence and a test of one’s ability to maintain equanimity in a volatile environment. In this way, the adoption of Bitcoin can be seen as not just a financial revolution but also a philosophical stance, one that echoes the timeless wisdom of Stoicism in the digital age.

The End

That's it for this episode. I hope you got some valuable information from this one. Don’t forget: Waste no more time arguing about what a good person should be. Be one! Thanks for reading, and see you in the next one. ₿ critical, ₿ informed, ₿ prepared. Yours,