Bitcoin might be the new gold rush, but human behaviour remains the same
The year is 2021 but as the saying goes somethings never change and when it comes to Bitcoin never a truer word was spoken.
In the 1800s many a prospector flocked to get in on the Gold rush action, they were promised an overnight fortune and for many it did happen. But with all things related to industry it wasn't always the Gold miners that scored the big pay day.
After all in the middle of a Gold rush when everyone is digging the best item to invest in wasn't the Gold itself, it was the shovel.
As you can see from the store price list above items in areas where Gold rush fever had taken over saw a dramatic increase in the cost of items. Even in comparison to today's prices a pound of coffee was through the roof.
Side fact: Miners could pay to enter a private booth that held worn women's briefs so they could smell a woman and masturbate
And yet here we are in 2021 and nothing has changed, so you might be thinking what's the shovel in today's Gold rush?
NVIDIA is the shovel supplier and their shares have continued to boom ever since the 2017 Bitcoin boom. Yes Bitcoin has been around for quite some time but it's ability to be mined with a standard computer CPU held off an initial boom. As Bitcoin required more computing power the shift to GPU and with it a boom in share prices for NVIDIA.
Market investors wanting to get into Bitcoin but not directly have profited off purchasing the shovel rather than the Gold.
Unfortunately for investors this isn't the 1800s and with all things tech advances in this industry will lead to efficiency and as more people get involved with mining competitors will emerge to provide cheaper just as effective shovels.
Furthermore investing in the shovel in this industry probably isn't of the best choice as the shovel might not be the best investment opportunity moving forward as block chains move away from mining and implement Proof-Of-Stake.
Computers will continue to be a means of engaging with block chains but we're not too far off having use of access and ease of access where all that will be required is a cheap mobile (cellular) phone and an internet connection.
This move will create larger profits for prospectors than merchants dealing in shovels.
What are your thoughts on the topic, is human behaviour predictable and will we be able to circumnavigate past rorts and cost increases by planning and implementing change to ensure prospectors (users) remain a head of the game and the wealth holders?
Posted Using LeoFinance Beta
