Counting Bitcoin
This chapter uses the growing dominance of algorithmic high frequency trading in finance to frame a reading of Bitcoin and related cryptocurrencies. By defining the unit of exchange through computational cycles, Bitcoin fundamentally shifts the faith-based community of currency from a materialist to an algorithmic value system. Algorithmic arbitrage is forcing similar transitions in the attribution of value and meaning in many spaces of cultural exchange, from Facebook and Google’s Page Rank algorithm to journalism. The fundamental shift from valuing the cultural object itself to valuing the networks of relations that the object establishes or supports leads to new practices and aesthetics of production, where form and genre give way to memes and nebulous collaborative works. Using Bitcoin and its underlying blockchain technology as an example of this new value model, the chapter considers the consequences of programmable value for the notion of a public sphere in the twenty-first century, an era when arbitrage trumps content.