Bitcoin Rush Compared to California Gold Rush in 19th Century
By Jerin Mathew August 1, 2014
A rack of application-specific integrated circuits and block erupters used in Bitcoin miningReuters
The recent rush for mining popular digital currency bitcoin bears some striking similarities to the California gold rush in the mid 19th century, according to infographic design agency NeoMam Studios.
In January 1848, John Marshall found gold in the American River at Shutter’s Mill, leading to a rush among San Francisco residents to pan gold.
Similarly, Satoshi Nakamoto launched bitcoin in 2008, and the peer-to-peer open source digital currency gained in value and popularity, resulting in a rush by enthusiasts who look to generate some quick gains through mining bitcoins.
Bitcoin is generated through a process called “mining”, but the miners here use computers and cryptography instead of shovels and buckets used by gold miners.
The digital currency is traded within a global network of computers, and they can be transferred without going through banks or clearing houses, reducing fees involved in the services significantly.
Despite concerns about bitcoin’s legal status, a number of high-profile merchants started accepting payments in the digital currency, leading to sky-high values for the alternate money.
Bitcoin value peaked to $1,250 in November 2013, leading to high demand for mining equipment and related services.
NeoMam Studios’s infographic comparing the Bitcoin Rush to the California Gold Rush is given below.
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