The Internet and other telecommunications systems have reshaped the means by which markets are accessed, generated, and transformed. Recent innovations in computer science have led to the development of a virtually bound, decentralized, encrypted currency system known as bitcoin. Unlike conventional currency systems, the Bitcoin protocol is cryptologically defined with a virtual structure that allows it to simultaneously operate as currency, commodity, and market shaping socio-political force. Its decentralized design permits it to function as a free-market response to fiat currencies vulnerable to inflation, regulation, and manipulation. Given the cultural significance anthropologists and other social scientists have assigned to various modes and mediums of exchange over the years, the socio-economic impact of this novel currency system warrants particular consideration. This research describes the Bitcoin community that has emerged alongside the currency, including the entrepreneurs, developers, and consumers who are dedicated to bitcoin’s perpetuation and acceptance as an internationally recognized medium of exchange. Ethnographic interviews and participant observation were utilized to collect information from users in the Central Florida area, detailing their experiences and interactions with the Bitcoin protocol and its associated community. This research provides new levels of anthropological insight into currency development, market interaction, and economically embodied social commentary. Moreover, its exploratory nature helps create a viable framework around which qualitative inquiry of virtual crypto-currencies may be designed in future studies.

Purpose – The purpose of this study is twofold. First, the relevant literature is reviewed briefly to provide a strategic context of the different views on strategy development. In the process, the linkages between the e-commerce view of strategy and previous views are explored. As such, the perspectives of different schools of thought on strategy are briefly highlighted. Second, the different dimensions of the e-commerce strategy and their impact on organizational performance are investigated. Design/methodology/approach – Asurvey integrating different theoretical views of value creation was developed and sent to Portuguese e-commerce firms to assess the underlying dimensions of their strategies through factorial analysis. Then, a clustering analysis was performed to determine strategic groups to compare corporate performance. Findings – Three e-commerce dimensions were identified: marketing, innovation and efficiency. Results of data analysis suggest that differentiation factors have impact on corporate performance in the context of virtual markets. Research limitations/implications – Although the Portuguese specific nature of the study could be seen as a limitation of the generalization of the findings, in the authors’ view, it is not truly a limitation because Portuguese executives face the same challenges that other countries counterparts, due to the universal application of e-commerce. Moreover, the use of a Portuguese sample validates findings from other cultural settings, contributing toward a unified theory and testing its applicability. In this way, it is an opportunity rather then a limitation. Practical implications – The research identifies what is strategic and highlights the competitive methods that enhance differentiation in virtual markets, which could be useful as a framework for strategic formulation. Moreover, it provides a theoretical rational for investments in intangible assets. Originality/value – The development of a survey to assess e-commerce strategies and the identification of the e-commerce strategic dimensions are the main contributions of this research, which highlights the importance of differentiation factors in virtual markets.