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Berger and Luckmann (1966) identified and codified the process whereby individuals as part of a social unit interact with one another to create meaning.  Over time, socialization produces agreed upon concepts and roles, which we define as reality.  Today, we see this process occurring within the fields of technology and economics to create value in a system of monetary transactions institutionalized as a form of currency.  Satoshi Nakamoto, who developed what he called a Peer-to-Peer Electronic Cash System, officially announced Bitcoin in 2008.  Other attempts to build a digital cash system failed.  Nakamoto’s success came by utilizing a peer-to-peer network whereby every entity in the network has a list with all transactions to validate spending.   This social construction of digital cash is tantamount to the social construction of reality as identified by Berger and Luckmann.  The question lies in whether this system will be institutionalized over time.  This analysis reviews the technological, economic and political determinants of the construction of a digital cash system to determine the likelihood of the institutionalization of cryptocurrencies.

information systems