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Who makes money in a gold rush? It's the guy selling shovels.
by searine 9y ago
Who makes money in a gold rush?
It's the guy selling shovels.
- Someone1234 9y agoThat was my thinking too. There are a lot of replies in this thread talking about Bitmain like they're the miner, when in reality they're the mining supply store selling miners the shovels, hard hats, and so on. Mining itself may be profitable, or it may not. But no matter what, the supplier should come out with a fairly healthy profit if they play their cards right.
- icelancer 9y agoMaybe. The lead time on this stuff is not insignificant. It's not that simple. Bitmain/Jihan understand that; they take a varied approach.
- huffpopo 9y agoIf you mean Samuel Brannan, then you make money by diverting church funds to pay violent gangs to establish and maintain a shovel monopoly. Then you lose it all to a real estate crash and a divorce. So the real lesson is be immoral, break the law, diversify and don't get married. It's not like he is the only one who thought of selling shovels with huge markups.