This is also a great post, and I agree with most of it. I do not agree that we are in a pure capitalism scenario regarding mining, due to a lot of external influence on the physical goods required from the non-BTC world. The ASIC problem is a great example of this. CPU (and less so GPU) mining was much more "pure capitalism" in the sense the resources had the same availability to everyone with the same dollar bill. These resource availability problems are artifacts of a corrupted/centralized resource system that mining is now dependent on. The minute we diverged from commodity hardware, that was when the dollar bills became unequal in a big way, this is an external influence that probably cannot be avoided or corrected for at this point without changing the PoW - I have seen no indications that any Bitcoin dev has even considered this a major problem.
I think if we mapped cryptocurrencies from most to least likely to centralize money creation/creating an eventual monetary hierarchy it would go Bitcoin (PoW is ASIC friendly) ---> Litecoin (somewhat ASIC resistant PoW) (some unknown CPU x86/ARM-only PoW, no GPU/ASIC) --> Peercoin (PoW declines into a proof of stake system)
This is a really interesting topic, sorry to poop in the KnC thread though.
But this is just a transition from utilizing non-scarce resources to utilizing scarce resources. The apropos of "capitalism" does not change...capitalism does not imply fairness. It only implies the ability of capital to be brought to bear in a market unfettered by forces outside that market. The market itself then shapes the effectiveness of that capital depending on the conditions at play at that time. Throughout the process of moving to an ASIC world, money talked. If you had enough money, you could get equipment pretty much at any point. Taking it to extreme..if you had a LOT of cash sitting around, you could have commissioned your very own ASIC device from scratch. Whether or not taking such actions would be wise or profitable is irrelevant..the fact is that there was no law or other artificial constraint to keep you from doing so. Only market forces (price of bitcoin, price of semiconductor fabrication, time to market, etc) dictate on whether that is the best use of your capital.
In the case of gpus'..there was no scarcity except that which was artificially created by AMD (and to a lesser degree nvidia) via set price per item thus in that vein the GPU era was actually less "pure capitalism" since there was no supply/demand curve at play within the narrow scope of the mining community. The term that is more applicable to this era (and CPU) is "democratized" since everyone had the same ability to enter the market for the same price per machine, not "pure" capitalism. Scaling that to multiple machines and farms..then yes, it becomes a bit more capitalistic as it rewarded the availability of additional capital resources with additional hash power and ostensibly greater revenue and profit (assuming profit margin being equal or greater due to economy of scale). Later, in the transition to ASICs (and FPGA to a large degree) true scarcity was a factor thus at a fixed price for equipment you had more money chasing a fixed number of devices. The dollar bills never became "unequal"..rather the availability of mining hardware at price points that were deemed "acceptable" became scarce thus queue position and/or "cronyism" became the tie-breakers.. If one was willing to up the bid price (following simple supply/demand curve theory), you could have as much mining equipment as you wanted even if it was second hand or created custom just for you.
That's about as clear cut capitalism as it gets, IMHO.
Anyway, yeah I agree we've probably hijacked the thread for long enough. I'll just close by saying that folks need to assume that everyone is going to act in a way that maximizes their own personal gain....and plan accordingly. If they don't and wind up getting burned for trying to be "nice"...they only have themselves to blame at this point.