Bitcoin is a method of payment and a digital currency that was launched in 2009. It has been described as “cash for the internet” and the price of all bitcoins in circulation currently amounts to USD 1.5 billion. One of its key features is its decentralized structure that prevents regulation of the currency by a central authority or bank. It is this aspect of Bitcoin that is trumpeted by Utopian libertarians who see it as the embryo of capitalism without regulation or control, a dream that is already being scuppered by the realities of the modern world.

Others see Bitcoin simply as an opportunity to get rich quick and then get out before the bubble bursts, and in that sense Bitcoin paints a microcosmic picture of the nightmarish short-termism and irresponsibility that is the hallmark of capitalism in decline. It is hardly surprising that such a phenomenon should take off in the midst of a global crisis of capitalism.

According to some, the technology pioneered by Bitcoin and other so-called crypto-currencies is potentially game-changing when it comes to online transactions, with as much potential for a revolution in payment processing as Napster was able to achieve with music downloads. However, what is already becoming clear is that this technology can never be used to its full potential under capitalism: to really unleash the power of technology in all fields, not least in online transactions, we require a socialist plan of investment in technology and a plan for the use of technology to develop the economy in the interests of need and not profit.