Bitcoins, the Rhizome and the Failure of Peer-to-Peer Currency

The bitcoin. In the summer of 2011 the forums on the website "Somethingawful" found the prophets of bitcoin and proceeded to milk them for all the comedy value they were worth. The idea of bitcoin is very interesting: a peer-to-peer, hash generated piece of data that a willing community places a value on. Because it was generated by individuals on their computers the bitcoin theoretically demonstrates something I've discussed before, that is the strength of the rhizome and peer-to-peer networks to bypass control issues imposed by the state. Indeed, that's how the currency first came to the attention of the users of Somethingawful: bitcoins are a primary method of payment for a website called "Silk Road", where users could purchase drugs through mail order. Bitcoins were untraceable, anonymous and consequently perfect for small, illegal transactions.

 The problem is that such a network relies on the user with no regulating authority. Or, to put it differently, there is a regulating body with no authority as users start groups that attempt to introduce order. And few of the users who have been mining bitcoins do not want any sort of regulation to what they perhaps see as a vast playground where money can be conjured out of thin air and traded through exchanges set up by other users. Unfortunately the problems plaguing bitcoin mostly stem from this anarchical state.

 Throughout the Summer of 2011 exchanges were hacked, users outright scammed by other users and the value of bitcoins went high, only to crash back down when speculators decided to cash out. The unstable market coincided with the unstable security of the existing exchanges, both of which were hacked. Essentially, if you invest large amounts into bitcoin it seems you need to be prepared to lose most of it.

 The bitcoin saga emphasizes one major point about conducting business over a rhizome based peer-to-peer system: there needs to be some sort of regulating body, preferably not market based and preferably not invested in the article it is regulating. I think that a peer-to-peer system like I discuss elsewhere as a rhizome works for the free exchange of media and culture but would fail without appreciate oversight in replacing state backed currency. Bitcoin is fascinating but not ready for a broader usage and perhaps never will be. 

Native America and Solar Power

We had a discussion in class about solar power and how Native American reservations are taking advantage of their location to set up solar arrays. Solar power and sustainable energy constructs could pave a way ahead for many native tribes. Why?

1. More sustainable economically than casinos: Sure, they may require thinking in the long term, but a plan to copy the Navajo and place solar arrays on tribal land is a sure thing from an economic standpoint. Casinos are vulnerable to economic downturns; energy is far less vulnerable and far more steady; everybody needs power.

2. Works for tribes without a viable casino location: Who wants to go to Pine Ridge for a holiday of gambling? Instead, Pine Ridge, and other plains and desert reservations, could begin to invest in services that surrounding states and communities require. A win/win for power companies and the tribe.

3. Make use of extensive tribal land: Much tribal land is useless for just about everything....except things like wind and solar units. Why not make use of this terrain for something profitable?

Here's a final thought: what if the tribes began to come together, with wealthier ones investing in wind and solar units in reservations unable to meet the initial investment. Further, the green power initiative by the Federal Government could give grants to tribes, with appropriate oversight. A significant growth in power production by Native American tribes would also give an addition to the meaning of "Made in the USA". A economically unified native community within the US and Canada would be beneficial, I think, on both sides of the line. Green and sustainable energy, economic benefits and a unified sense of native community.

In the roleplaying game Shadowrun the native tribes are powerful, unified and possess a significant say in how their country is run. In the game world they have magic...in the real world that could be the future of solar and wind power.