Algorithmic Authority: The Case of Bitcoin

In this paper, we propose a new concept for understanding the role of algorithms in daily life: algorithmic authority. Algorithmic authority is the legitimate power of algorithms to direct human action and to impact which information is considered true. We use this concept to examine the culture of users of Bit coin, a crypto-currency and payment platform. Through Bit coin, we explore what it means to trust in algorithms. Our study utilizes interview and survey data. We found that Bit coin users prefer algorithmic authority to the authority of conventional institutions, which they see as untrustworthy. However, we argue that Bit coin users do not have blind faith in algorithms, rather, they acknowledge the need for mediating algorithmic authority with human judgment. We examine the tension between members of the Bit coin community who would prefer to integrate Bit coin with existing institutions and those who would prefer to resist integration.