Historian Yuval Noah Harari analyzed how Bitcoin's value is based on collective narrative, highlighting social trust as the central axis of its economic legitimacy.
Yuval Noah Harari, author of works such as Sapiens y Homo Deus, has dedicated part of his contemporary analysis to phenomena that transcend the economic and technological.
In the case of Bitcoin, Harari argues that its value comes not solely from its code or digital infrastructure, but from a narrative shared by millions of people. “If enough people believe in Bitcoin, then it could be worth thousands and tens of thousands of dollars.”, he says, stressing that money, in any of its forms, is a collective fiction that works thanks to the social trust.
BUY BITCOIN SAFELY WITH BIT2MEValue as a social construction
Harari's approach redefines the concept of value. Instead of linking it to concrete physical properties or utilities, he places it in the realm of shared beliefs. According to him, money is one of humanity's most successful fictions, since he considers that has no intrinsic value, but it allows for cooperation between strangers, the organization of complex societies, and the creation of global economic systems.
Bitcoin, as a form of digital money, fits into this logic.Its existence and legitimacy depend on enough people accepting its story as true.
In this sense, Harari points out that Bitcoin is not only a financial technology, but a mathematical narrative which becomes an economic reality when it manages to capture the support of a critical mass. Therefore, he argues that its value fluctuates not because of technical changes, but because of variations in collective trust.
Harari: Narrative as a driver of trust
Harari argues that the human capacity to create and sustain shared fictions is what has enabled the development of civilizations. Religions, nations, laws, and currencies are examples of narratives that, while often lacking physical existence, organize the lives of millions. Bitcoin joins this list as a story that is told and believed, and therefore acquires value.
Trust is the central element of their view. In the case of traditional money, this trust is placed in institutions like central banks and governments. In Bitcoin, trust is transferred to a decentralized system, based on mathematical rules and digital consensus. Harari acknowledges that this transition represents a significant innovation, but cautions that the absence of a central authority doesn't eliminate the need for a solid narrative.
For Bitcoin to maintain its value, it must sustain a credible story, capable of being accepted by a broad community. According to him, technology alone does not guarantee stability or legitimacy. What matters is that people believe in the system, use it and defend it as part of their economic reality.
Bitcoin: A response to institutional distrust
One of the most critical points of Harari's analysis is the origin of Bitcoin. The cryptocurrency was born in 2009, in the midst of a global financial crisis, as a alternative to the traditional banking systemIts unique and innovative design rejects the intermediation of governments and banks, proposing a decentralized model where transactions are validated by consensus between users.
Harari interprets this birth as an expression of distrust, considering that Bitcoin is not built on faith in institutions, but on the suspicion that they can fail, manipulate, or exclude.In his view, this foundation could be problematic in the long term. While he recognizes the value of exploring new forms of electronic money, he believes that a currency based on institutional trust could offer greater social sustainability.
A controversial approach
This approach has sparked controversy within the crypto world. Some Bitcoin advocates argue that it's not about distrust, but about a “trustless” system, where it is not necessary to trust third parties because the rules are programmed and verifiableFor advocates of decentralization, Bitcoin represents a technological emancipation from historically opaque structures.
Others, however, agree with Harari that the absence of a strong institutional narrative can be a limitation, since trust, even if distributed, is still necessary, and building it without traditional references can be a time-consuming challenge. Despite this, in just over a decade, Bitcoin has managed to consolidate trust at the individual, institutional and sovereign levels., increasingly positioning itself as a globally recognized and adopted asset as a store of value.
BUY BITCOIN FAST AND SAFESocial consensus as a guarantee of value
Beyond the technical complexities, Harari emphasizes that the true value of Bitcoin lies in the social consensus that supports it. It's not enough to have innovative technology; what's essential is that people believe in it, adopt it, and integrate it into their daily lives. He explains that money ultimately only works if it's accepted by the community as a medium of exchange.
This principle holds true for both the dollar and Bitcoin; however, what distinguishes each is the narrative that underpins them. While the dollar relies on the authority of the US government and decades of institutional stability, Bitcoin builds its history on autonomy, decentralization, and resistance to state control..
Harari recognizes the potential of this narrative, but warns that Bitcoin's success will depend on its ability to generate trust on a massive scale. Mass adoption is achieved not only with sophisticated algorithms, but with compelling stories that resonate with people's needs, values, and aspirations. In this sense, Bitcoin is establishing itself as an asset that inspires trust at the individual, institutional, and sovereign levels, gaining ground as a recognized and increasingly adopted store of value.
Bitcoin: Money, Trust, and the Narrative Behind It
Yuval Noah Harari's analysis of Bitcoin offers a perspective that transcends the technical and financial. He proposes viewing money as a cultural construction, whose value depends fundamentally on a shared narrative, based on trust and cooperation between people.
From this perspective, Bitcoin is a mathematical story that has captured the attention and belief of millions of people around the world. For Harari, its value lies not only in its code or its technology, but in the collective faith in its usefulness and legitimacy.
The question that remains is whether Bitcoin will be able to consolidate a narrative strong enough to sustain its value over time. Its evolution will depend as much on its technological development as on its ability to build and maintain a credible story, accepted and shared by a global community. Ultimately, Harari believes that Bitcoin's future is not only played out in the markets, but also in the minds of those who choose to believe in it.
