Paradigm Shift? Digital Currency 8 - Virtual Exertion?

"Bitcoin mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground." 

Because there is no central or third party authority oversight, this whole digital currency thing is based on...

making a transaction envelope harder to open... because lame ass spammers wont want to expend the effort... by gluing it shut with heavy duty encryption...

to help authenticate and provide accountability... the commune chips away at it with brute force to pry it back open, to prove they've  "worked" hard, to "earn" and generate new currency.

Wait a minute, I thought you wanted to avoid the overhead costs?  I guess Mt. Gox proved, you can't do that without some process and procedure for oversight, authentication and security.

But it's a new paradigm, its communal, rather than an authoritarian model as the community prints the money, instead of the bankers who run the Fed?

In essence, creating an internet based Fiat currency, while eliminating the House of Finance from the equation?  Yeah, thats the ticket...

Excuse me but this sounds like another version of what we as a Nation have been doing since the 80's. That is... finding ways to make money without any tangible end product.

An excerpt from something we penned in the last millenia circa 97':

"In the 80’s, we became experts on how to make money without producing any tangible products. Mergers, acquisition’s, leveraged buy-outs, junk bonds, Milken, DeLorean and Keating... 

manufacturing sector contraction, service sector growth, no RandD spending... and escalating real estate costs all contributed to the "trickle down" voodoo economics."

The Nattering One muses...   in the scintillating multi part conclusion of this missive, we expand upon this "new paradigm and technology"...

Which in fact, offers little new and is old hat... as the Nattering One encountered this first hand almost 20 years ago....  SAY WHAT? 

Yep, the more things change, the more they stay the same...  More to come, no flippin.  More on that excerpt...

Paradigm Shift? Digital Currency 9 - Social Amnesia?
Paradigm Shift? Digital Currency - Index