The Myth of Virtual Currency

File this one under “what is at stake” when we talk about the digital dualist critique. Bitcoin, the Internet’s favorite way to buy pot and donate to Ron Paul, hit an all-time high this week of around $900 to one Bitcoin (BTC). The news coverage of Bitcoin and the burgeoning array of crypto-currencies (according to the Wall Street Journal there’s also litecoinbbqcoinpeercoin,namecoin, and feathercoin) has largely focused on the unstable valuation of the currencies and all of the terrible things people could do with their untraceable Internet money. What hasn’t been investigated however, is the idea that crypto-currencies are somehow inherently more “virtual” and thereby less susceptible to centralized control the way US dollars, Euros, or Dave & Buster’s Powercards are. Both assumptions are wrong and are undergirded by the digital dualist fallacy(more…)