Bitcoin and Potosí Silver

Historical Perspectives on Cryptocurrency

Bibliographic Data

ID4023929
AuthorsZac Zimmer (0000-0002-8133-8016, corresponding author)
Year2017
Volume58
Issue2
Pages307-334
Publication date2017-01-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueTechnology and Culture (JOURNAL)
Journal identifiersISSN: 0040-165X • E-ISSN: 1097-3729
PublisherProject MUSE (PUBLISHER • US)
DOI10.1353/tech.2017.0038
PMID28649110
OpenAlexW2644504898
LanguageEN
Citations received32
References cited17

Bitcoin, the digital cryptocurrency, has been celebrated as the future of money on the Internet. Although Bitcoin does present several forward-looking innovations, it also integrates a very old concept into its digital architecture: the mining of precious metals. Even though Bitcoin explicitly invokes mining as a metaphor and gold as an example for understanding the cryptocurrency, there has been little critical work on the connections between Bitcoin and previous metalist currency regimes. The following essay proposes a historical comparison with colonial South American silver mining and the global currency regime based on the New World silver peso it created as a way to interrogate Bitcoin. The comparison with colonial South America, and specifically the silver mining economy around the Cerro Rico de Potosí, will help to develop a historical and political understanding of Bitcoin's stakes, including questions of resources, labor, energy, and ecology. Mining and the extractive apparatus that accompanies it always imply massive-scale earthworks that reshape the planet itself, a process known as terraforming. The Potosí comparison will reveal Bitcoin to form part of a similar process of digital primitive accumulation we can provisionally name cryptoforming

Digital currency · Blockchain Technology Applications and Security · Crime, Illicit Activities, and Governance

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