“In Bitcoin We Trust": An Anthropological Approach to Bitcoin as Algorithmic Utopia

Abstract

The aim of this paper is to contextualize briefly the emergence and development of Bitcoin as well as to offer an anthropological analysis of one such "algorithmic utopia" known as Bitcoin. Bitcoin was officially "born" in 2009. Its foundation was laid by the so-called white paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" (2008), authored by Satoshi Nakamoto, a pseudonym for an individual or a group of individuals. In essence, the intention of its creator (or creators) was to solve the technical problem of so-called double-spending of money, aiming to avoid reliance on a third party or institution (such as a bank) and the consequent loss of privacy for its users, with the help of an algorithm called blockchain. Although Bitcoin can be viewed in continuity with movements such as crypto-anarchism and cypherpunk, whose roots trace back to the 1980s of the twentieth century, and although it is not the first cryptocurrency nor the first alternative to fiat money, Bitcoin is indeed the first cryptocurrency to have attracted broader attention in both public and academic discourse. This paper will shed light on the context in which Bitcoin was born and popularized, and will endeavor to defend the assumption that the popular imagination behind the Bitcoin currency is technoutopian. Finally, this paper will seek to demonstrate that the algorithm at the very core of Bitcoin is perceived not only as the fulfillment of an Enlightenment dream of a method itself as a non-cultural and supra-historical guarantor of objectivity (as the one) removed from politics, economy and ideology but also as a democratization method applicable to them all. Apart from the mentioned above, the paper concludes that Bitcoin is seen as the fulfillment of a modernist dream of efficient, formal, predictable, depersonalized bureaucracies in the context of the diminished legitimacy of centralized, hierarchically structured, sluggish, fallible, and abuse-prone economic and state institutions. The focus of trust shifts to technology: to an algorithm seen as self-regulating, efficient, free from ideology, subjective interests, and potential abuse, almost divinely infallible, decentralized, and democratic system that provides a group of individuals not only with the necessary tools to achieve their freedom and privacy, deprived from control and regulations, but also as a tool for reforming the political and economic system.