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The Double Embeddedness of Bitcoin: Insights from Old and New Economic Sociology

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  • Fiammetta Corradi

Abstract

Revisiting analytically the notion of embeddedness and its connections with the concept of trust, this paper shows that contrary to Bitcoin’s premises and promises to be a trust-low or even trust-less currency, trust enters the system at many various levels and with different nuances. Applying a conceptual framework that conceives embeddedness as both the possible source and outcome of trust, it is pointed out that Bitcoin should better be regarded as doubly embedded: in technology and in its peculiar social structure. Due to the existence of computational and cognitive asymmetries within the system, in fact, trust is necessary for the very functioning of this new form of money, as well as for its future prospects.

Suggested Citation

  • Fiammetta Corradi, 2018. "The Double Embeddedness of Bitcoin: Insights from Old and New Economic Sociology," International Journal of Social Science Studies, Redfame publishing, vol. 6(6), pages 33-41, June.
    • Handle: RePEc:rfa:journl:v:6:y:2018:i:6:p:33-41
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    References listed on IDEAS

    as
    1. Rainer Böhme & Nicolas Christin & Benjamin Edelman & Tyler Moore, 2015. "Bitcoin: Economics, Technology, and Governance," Journal of Economic Perspectives, American Economic Association, vol. 29(2), pages 213-238, Spring.
    2. Ning Shi, 2016. "A new proof-of-work mechanism for bitcoin," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-8, December.
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    More about this item

    Keywords

    embeddedness; bitcoin; blockchain; mining pools; trust; rationality; economic sociology;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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