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.
I am an Associate Professor who specializes in International Security, Future Studies and Military History.
