Bitcoin, the innovative virtual currency, may be a good idea for many reasons, but as it's currently conceived, it cannot really be free from corporate and state control. That's my strong belief after recently talking to Bill Maurer, Professor of Anthropology and Law at UC Irvine, whose specialty is money. (He wrote a very fun paper on Bitcoin and other non-traditional currencies for the July issue of The European Economic Sociology Electronic Newsletter -- click here for PDF link.)
"[I]t's not that they could easily pull the plug on the whole thing," he tells me, "just that they could easily stop the cash-in, cash-out side of Bitcoin, and effectively stop the flow of value into the system." Basically, as Professor Maurer explains, Bitcoin depends on infrastructures that corporations and states already control -- including a little-known protocol that handles financial transactions across the Internet: