Bargeld left school prior to completion, and is self-taught. He experimented with audio equipment as a teenager, including the disassembling of tape recorders. The first album that he owned was by Pink Floyd, but he quickly moved on to German krautrock acts such as Kraftwerk, Neu! and Can, which he described as his biggest influences at the time.
Bargeld is from the Tempelhof area of West Berlin and he moved out of his parents' home in the late 1970s. A 2008 documentary featured him visiting his mother and talking to her about his childhood and the relationship that he had with his parents.
In 1980, Bargeld founded the group Einstürzende Neubauten ("Collapsing New Constructions"). Bargeld spoke of the early days of Neubauten in 2010:

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