If anything, Bitcoin resembles capitalism,
Anarcho-capitalism. If it was a democracy, everyone could vote for changes, but Bitcoin can only be changed by those who have invested in it, more by those that invested more, in mining, nodes, etc. And its fully private, No State.
States, especially those advocating socialism, want control. Everything must be owned, and regulated by the State. This goes in the opposite direction of democracy, AND anarchism. Sure an anarchist state could have people voting, direct democracy style on every single tiny issue, but this is unscalable, so the best they can do is adopt a more classic liberal posture where the law isn't that specific to the point to regulate your life (as socialism does) but within the law you are free.
The socialist mind goes against individual freedom. Everything must be regulated to the minute detail. Among other things, they "insist" the free market economy is at fault and must be replaced by... their rules. Thousands of rules, which are destined to be disobeyed, because humans are humans and policing everyone becomes unscalable as well. You will get corruption, and crime, LOTS of it, no matter how eastern Germany police state you become (and that's a perfect example of its failure).
If it makes you happy, you don't have to talk about democracy. A republic with democratic institutions is good enough. You think a republic with socialists institutions should be good as well, but there you are wrong, VERY wrong.
Democracy and Socialism are antagonistic. A group forces their rules onto another. You replace a Monarch with a Party or great Leader, and it results in the same thing or even worse. "Ah, if everyone becomes socialist" not going to happen, ever. It goes against human nature. People want the free stuff, but they don't want the rules that are supposed to make possible to get the free stuff...
Capitalist "greed" and individualism tend to keep thing self regulated, at least much better than a bunch of bureaucrats planning things in the center of a nation, unable to comprehend the realities of the last village at a given time at the same time on a given (ever changing) situation.
And yes socialism = centralization. If you don't have state ownership of the means of production, you are unfit to use the word socialism. Maybe you wan't welfare or something, but it still involves the State enforcing rules unto others.
