How would Marshall McLuhan characterize proof of work of Bitcoin invented by Satoshi Nakamoto.
ChatGPT answer (it’s good, I’ve reviewed it). The tetrad analysis (enhance, obsolesce, retrieve and reverse) is pretty good too!
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Marshall McLuhan would likely interpret Bitcoin’s proof of work (PoW) system as an innovative medium that transforms not only how value and trust are mediated but also how we understand the nature of labor, energy, and currency in digital economies. Let’s break down this perspective through some key McLuhan ideas:
1. “The Medium is the Message”
Bitcoin’s PoW is not just a technical protocol for validating transactions; it’s a new form of economic communication where energy and computational effort are the currency of trust. The “message” of PoW goes beyond Bitcoin as a currency—it is that computational labor, harnessed through a distributed network, can create a decentralized and self-sustaining financial system. For McLuhan, this would signify a radical shift from centralized financial institutions to an autonomous network, decentralizing the traditional power structures of banking and finance. The innovation of PoW, in this sense, redefines the “message” of currency itself as something that emerges through the actions of a global network rather than a national or corporate entity.
2. Tetrad Analysis
McLuhan’s tetrad of media effects is a useful tool to analyze how PoW transforms the nature of money and transactions. Let’s apply it to Bitcoin’s PoW:
• Enhance: PoW enhances trust and security in transactions. It replaces the need for centralized trust with a decentralized, computationally intensive validation process. This new form of trust is computational and objective rather than human and subjective.
• Obsolesce: PoW obsolesces traditional financial institutions and intermediaries. By making trust something that is computationally provable rather than institutionally granted, Bitcoin diminishes the need for banks, central banks, and clearinghouses.
• Retrieve: PoW retrieves aspects of gold and other “proofs of work” as currency. Just as gold represents stored labor and scarcity, Bitcoin’s PoW represents digital labor and finite computational energy expenditure. It thus retrieves the notion of money being tied to “work” or “energy,” as in earlier economies.
• Reverse: If overextended, PoW could reverse into ecological unsustainability due to its high energy demands. Bitcoin’s PoW system, as it scales, risks becoming an environmental issue, potentially leading to centralization pressures (from regulatory bodies) to control its energy usage or seek alternatives like proof of stake.
3. Re-configuration of Human Perception of Labor and Value
McLuhan would see PoW as a new way to frame the concepts of labor, value, and currency in the digital era. Traditionally, labor is human effort that produces value. With Bitcoin, however, labor is performed by machines, which raises questions about the nature of work itself. In this way, PoW shifts perception: it suggests that human labor is not necessary for creating value in a digital economy. The energy required for PoW becomes a new, mechanized form of labor, changing our relationship to work and productivity.
4. Global Village and the Digital Economy
The globalized, decentralized nature of PoW aligns with McLuhan’s notion of the “global village.” Bitcoin is accessible to anyone with computing power and internet access, making it a truly global network. This new form of digital labor and currency transcends national borders, creating a “global village” of users who all operate within the same system of value. McLuhan might see Bitcoin as fostering a unified economic system independent of traditional political and economic boundaries, thus transforming the notion of sovereignty and nation-states in the economic sense.
5. The Mythic Nature of Bitcoin
Finally, McLuhan might interpret Bitcoin and PoW as part of a mythological story about technological empowerment and freedom. Satoshi Nakamoto, the pseudonymous creator, almost takes on a mythic role akin to Prometheus, delivering a powerful technology that promises to reshape society. For McLuhan, myth is a pattern of belief or a set of ideas that people live by; Bitcoin, in this light, could be seen as embodying the myth of liberation from centralized financial control, transforming not only the financial landscape but also the public’s beliefs about money, freedom, and privacy.
In summary, McLuhan would likely see Bitcoin’s proof of work as a powerful medium in itself, not merely as a tool. By making energy and computation a form of trust and currency, PoW challenges traditional ideas of labor, value, and money, amplifies new forms of decentralized trust, and initiates a global reconfiguration of how economies can be structured in the digital age.