Bitcoin Hamster. How to succeed in cryptocurrencies

3. The Gold Rush (19th Century)

The Gold Rush was a period of mass migration to areas where large deposits of gold or other precious metals had been discovered. The 19th century saw several such waves, each generating immense hopes for rapid enrichment.

Major Gold Rushes of the 19th Century:

California Gold Rush (1848—1855). It began after the discovery of gold at Sutter’s Mill (California). It attracted hundreds of thousands of people from all over the world.

Australian Gold Rush (1851—1860s). Discoveries in Victoria and New South Wales brought an influx of migrants and rapid economic growth in Australia.

Klondike Gold Rush (1896—1899). It unfolded in the Klondike River region (Canada). It caused a rapid but challenging population increase and an economic boom.

South African Mining Rush (including diamonds). Discoveries in the Kimberley region and other areas spurred the development of the mining industry.

Why was it possible to get rich quickly?

Low entry barrier. Gold mining often required little initial investment – just a shovel, a pan, and luck. Many prospectors started from nothing and quickly grew wealthy.

High price of gold. Gold was always valuable and easy to sell.

Sharp rise in demand for goods and services. Settlements quickly sprang up in gold rush regions, with shops, banks, hotels, and transportation services. People who supplied tools and services to prospectors also became wealthy.

Speculation on land and equipment. Land in gold-bearing areas increased sharply in value. Selling or renting equipment brought high profits.

Who became rich during the Gold Rush?

Successful prospectors. Those who struck rich gold veins.

Entrepreneurs and merchants: sellers of equipment, food, alcohol, and real estate.

Example: Levi Strauss, who began selling durable jeans for prospectors.

Owners of mines and claims. Those who obtained mining rights and hired workers.

Investors. People who funded the development of large deposits.

Examples of success stories:

Levi Strauss – a German immigrant who founded a business producing durable trousers (jeans) for prospectors.

John Sutter – the landowner on whose property gold was discovered, initiating the California Gold Rush.

Risks and hardships:

Most prospectors did not become wealthy – many were left with nothing. Harsh natural conditions, disease, and lack of infrastructure were common. Conflicts over land and resources, along with high crime levels, were widespread. Deposits were quickly exhausted – gold was not endless.

The Gold Rush was a chance to get rich quickly, relying on luck, hard work, and entrepreneurial spirit. It was also a time of rapid economic growth in the affected regions and the development of new towns and infrastructure.

4. Industrialization of the United States and the “Era of the Robber Barons” (late 19th – early 20th century)

The “Era of the Robber Barons” is an unofficial name for the period of rapid economic growth in the United States from the 1870s to the early 20th century. During this time, huge corporations and monopolies emerged, and entrepreneurs who accumulated immense wealth were called “Robber Barons” due to their harsh and often ruthless business practices.

Why was it possible to get rich quickly?

Rapid industrial growth.

The United States was undergoing intense industrialization – steel, oil, and railroads were developing rapidly, as were the steelmaking and petroleum industries. New technologies and organizational methods made it possible to drastically increase production.

Expansion of the railway network.

Railroads became the “arteries” of the economy, connecting the eastern and western parts of the country. Control over railroads provided enormous economic and political advantages.

Business consolidation and the creation of monopolies.

Large entrepreneurs bought out competitors or made agreements with them, gaining control over entire industries. This allowed them to set prices and maximize profits.

Low taxes and weak regulation.

The government intervened very little in business activities at the time, which allowed the “Robber Barons” to freely manipulate the market.

Who were the “Robber Barons”?

Andrew Carnegie – steel empire

John D. Rockefeller – Standard Oil petroleum monopoly

Cornelius Vanderbilt – railroads and steamboats

J. P. Morgan – financier and banker, creator of major industrial conglomerates

James J. Hill – railroad magnate

How exactly did they get rich?

Monopolization of industries.

Rockefeller controlled almost the entire U.S. oil market. Carnegie introduced innovations in steel production and reduced costs.

Vertical and horizontal integration.

Vertical integration: control over all stages of production (e.g., raw materials, manufacturing, distribution).

Horizontal integration: buying up competitors to eliminate competition.

Market manipulation and political lobbying.

They secured favorable contracts, drove competitors out through price dumping, and influenced laws and politics to their advantage.

Use of cheap labor. Exploitation of workers, long hours, and low wages increased profits.

Impact on society and the economy

Stimulated economic growth and industrialization

Created giant corporations and the first multinational companies

Increased social inequality – the gap between the very rich and the very poor grew

Led to the rise of the first labor unions and workers’ rights movements

The Era of the “Robber Barons” was a time of enormous opportunities for wealth but also a period of fierce competition, lack of social protections, and widespread corruption. It was during this period that modern American industrial capitalism took shape.

5. After World War II (1945—1960s)

World War II ended in 1945, and the world faced a massive challenge – rebuilding devastated economies. Growth was especially strong in the United States and Western Europe. This period is often called the “Golden Age of Capitalism,” marked by powerful economic expansion and rising living standards.

Why was it possible to get rich quickly?

Economic recovery and growth in countries affected by World War II.

Reconstruction of destroyed infrastructure and industry. Growth in industrial production, agriculture, and the service sector.

Technological progress and innovation.

Active implementation of new technologies derived from military research (aviation, electronics, chemistry).

Development of mass production and automation.

Growth of consumer demand.

A mass consumer market emerged: cars, household appliances, housing. Rising incomes fueled demand.

In the United States, the Marshall Plan helped rebuild Europe, creating new markets. Millions of people rose out of poverty and gained stable jobs and income. This created a new class of consumers and workers.

Who could get rich and how?

Entrepreneurs and business owners.

Companies producing cars (Ford, General Motors), household appliances, building materials.

Construction and real estate developers, driven by a boom in housing construction.

Investors and shareholders.

People who invested in rapidly growing companies and the stock market.

Engineers and inventors.

Creators of new technologies and products that captured the market.

Financiers and bankers.

Lending to businesses and individuals, expansion of the mortgage market.

Key features of the period:

Relative economic stability, increased social mobility, strong government regulation and social programs (insurance, pensions).

The post – World War II period was a time of stable and rapid economic growth, when people could become wealthy thanks to industrial expansion, new technologies, and rising consumer demand. It was one of the most favorable periods for business in the 20th century.

6. Technological Boom (1990—2000) – The Dotcom Era

The Dotcom Era was a period of rapid growth for internet companies and technologies, especially from the mid-1990s to the early 2000s. The internet began to penetrate the lives of millions of people, and the first mass web services, online stores, and platforms emerged.

Why could people get rich quickly?

Explosive growth of the internet. The internet became accessible to the general public. New business opportunities emerged: e-commerce, online advertising, digital services.

Rapid increase in internet company valuations. Dotcom company stocks surged in price, even without sustainable profits. Investors poured money in, hoping for quick growth and high returns.

Easy access to venture capital. Venture funds actively financed internet-themed startups. Young companies received large investments for development and scaling.

Creation of new business models. Platforms for e-commerce appeared (Amazon, eBay). Search engines were launched (Yahoo, Google), as well as internet service providers and online services.

Initial public offerings (IPOs). Many startups quickly went public, allowing founders and investors to get rich almost instantly.

Who got rich? Founders and investors of internet companies: Jeff Bezos (Amazon), Peter Thiel (PayPal), Sergey Brin and Larry Page (Google). Funds that invested in the right projects. Traders on the stock market. Speculating on dotcom stocks brought huge profits.

Risks and the dotcom crisis:

The collapse of the dotcom bubble in 2000—2002. Many companies turned out to be unprofitable and closed, and investors lost billions of dollars. But for those who invested in the right projects (Google, Amazon), the Dotcom Era became the start of immense wealth.

The Dotcom Era was a period of incredible growth and opportunity, when rapid wealth was possible through innovation, investment, and going public. It was a time that showed how new technologies can transform the economy and create new market leaders.

7. The Cryptocurrency Boom (to this day)

The cryptocurrency boom is the rapid rise in popularity and value of digital currencies, starting with the emergence of Bitcoin in 2009 and continuing to the present day. This market is characterized by high volatility, innovation, and opportunities for significant profits.

Why could one get rich quickly?

The emergence of Bitcoin (2009): The first decentralized cryptocurrency, opening a new era of financial technology. The opportunity to buy bitcoins early at very low prices. The growth in cryptocurrency values. Increasing interest from institutional and private investors.

Development of blockchain technologies and DeFi: The introduction of smart contracts (Ethereum, etc.) and decentralized financial applications.

Opportunities for passive income through staking, farming, and lending.

ICOs and token sales: Mass initial coin offerings (ICOs) allowed buying new tokens at their launch.

The rise of NFTs and the metaverse: Digital collectibles and virtual assets opened new paths to earning.

Who got rich?

Early investors in Bitcoin and Ethereum.

Founders of crypto projects.

Creators of new blockchain platforms and applications.

Traders and speculators.

Users who entered and exited the market wisely.

Venture capital investors who backed promising projects early.

Risks and problems:

High volatility – huge price swings.

Regulatory risks and uncertainty across different countries.

Scams and fraudulent projects.

Technical risks and security issues.

The cryptocurrency boom is not just another trend. It is a modern era of change, comparable to the Industrial Revolution or the gold rush – and it is still ongoing. The main thing is: you are already living in it. What will you tell your children years from now?

“I’m sorry, son… I was afraid. I didn’t see the opportunity, even though it was right in front of me. We are not rich because your dad thought like a poor man. I trusted the crowd too much – those who always arrive last and always leave empty-handed.”

But it can be different! You can take a broader perspective. Stop seeking approval from the majority, who are always late. Start learning, experimenting, analyzing. Understand that times of change are not a reason for fear, but a window for growth. You don’t have to be a genius to seize the opportunity. You need to be open. Have the courage to ask questions, think for yourself, and most importantly, act before it’s too late. Awaken!

Chapter 3. How Your Capital Is Taken Away: A Story of Stealthy Robbery

“Capital extraction is the art of convincing you that money is dangerous and poverty is a virtue.”

The middle class is an educated, independent, and relatively self-sufficient layer of the population. They read, think, and analyze. They have the time, money, and energy to ask questions, participate in politics, create businesses, and organize. They can influence: vote, invest, change the rules of the game. A system built on inequality and control does not want people to think and unite. It wants consumers, not investors; workers, not employers; dependent people, not free ones.

The middle class as a mass stratum is disappearing; it is being mercilessly erased. You are either given pseudo-stability (a mortgage, loans, a survival job), or you wake up and climb upward, against the system. The richest keep getting richer (capital works on capital). Assets (stocks, real estate) rise in value – those who have them win. Those who don’t fall behind forever. Wages don’t grow at the same pace as prices and the cost of living. Central banks inject money into the system this drives up prices, but not ordinary people’s incomes. The rich know how to minimize taxes; the poor pay everything. “Benefits” keep you on the edge of survival but prevent you from moving up.

What is the expropriation of capital in the modern world? It is a systemic process in which resources – money, assets, time, energy – are taken from the population, small businesses, or inexperienced investors without visible violence. This can happen through economic mechanisms, informational influence, financial illiteracy, psychological and behavioral traps.

Who does this, how, and why?

1. States and central banks

Why? To redistribute resources, control inflation, and bail out major players.

How? Inflation: printing money reduces the purchasing power of the population. Increasing taxes. Pension reforms, where you pay but don’t receive. Devaluations and currency restrictions.

2. Corporations and banks

Why? For stable profits, maintaining power, and controlling consumers.

How? Pushing loans, mortgages, and leases with appealing promises. Subscription services where you never truly own what you pay for. Complex investment products with deliberately unfavorable terms.

3. Stock and crypto markets (including major players)

Why? To enrich themselves at the expense of retail investors.

How? Creating hype → attracting the crowd → dumping → selling assets at the expense of newcomers. Manipulation through media and influencers. “Pump and dump,” insider trading, false news.

4. The education system itself

Why? To keep you an obedient worker and consumer.

How? Financial illiteracy – you don’t know how money works. Propaganda of “stability” and fear of risk. Social programming: “wealth is not for you,” “money corrupts.”

How does this look in practice?

You spend 30 years paying off a mortgage – for an apartment the bank can take away from you. You keep money in the national currency – and watch your savings shrink. You are afraid to invest – and inflation eats your capital. You work for someone else your whole life – and retire with pennies.

What to do about it?

Increase financial literacy. Think strategically, not emotionally. Diversify: don’t keep everything in one basket (currency, assets, knowledge). Learn to spot risks and manipulations before you fall into them.

You are not poor because you have no money. You are poor because someone convinced you that you cannot keep it and do not deserve to be wealthy. Before we move on to crypto specifically, you must understand: no one is genuinely interested in your well-being neither the state, nor your friends, nor your boss. On the contrary, everything around you wants to take what little you have, or what might appear in the foreseeable future. You live in a system where, by default, you are a resource, a slave. You are not taught to earn you are taught to obey, consume, spend, and fear losing your job. You are given the illusion of stability: a salary once a month, a 30-year mortgage, a “free” healthcare plan. But it’s all a trap. The longer you stay in it, the harder it is to escape. And if you suddenly decide to break free start asking questions, studying finance, exploring investments or crypto – you will be called naive, greedy, strange, “too smart.” This is the system defending itself against the crowd. You must understand: the path to freedom does not go through seeking others’ permission. You will not get approval. You will not wait for the “right moment.” You will not be saved by telling yourself: “I just need to endure a little longer.”

Crypto is not just an investment. It is a protest. It is an exit from subjugation. It is a tool that works for you if you are ready to think independently. In the future, people will divide into those who understood and those who laughed and walked past. The only question is which group you will be in.

Mechanisms of Capital Expropriation from the Middle Class and Elites at Different Stages of History:

1. Antiquity (up to roughly the 5th century AD)

How capital was taken:

War spoils and plunder. Victors in wars seized lands, livestock, valuables, and slaves from the defeated.

Debt slavery. If a person could not repay a debt, their property could be confiscated, and they themselves could be enslaved.

Taxes and obligations. City-states collected taxes from the population, taking a portion of wealth.

Example: In Ancient Rome, emperors often confiscated the property of executed or exiled opponents. In Athens, debtors unable to pay lost both freedom and property.

2. Middle Ages (5th – 15th centuries)

How capital was taken:

Feudal system. Land belonged to feudal lords; peasants worked it and gave part of the harvest (rent) or labor (corvée).

Church taxes. Tithes claimed a significant portion of income.

Confiscations for “crimes” against the lord or king. Property could be seized, and titles revoked.

Inquisition and heresy. The Church could confiscate property from those accused of heresy.

Example: In England, after the Norman Conquest, William the Conqueror confiscated land from Anglo-Saxons and gave it to his vassals. In Russia, peasants had to pay rent or work for the landowner, effectively losing property rights.

3. Early Modern Period (15th – 18th centuries)

How capital was taken:

Colonial plunder. European powers (Spain, Portugal, England, France) seized lands, resources, and people (slavery) from indigenous populations.

Religious confiscations. During the Reformation and Counter-Reformation, church property was often seized in Protestant countries.

Revolutionary confiscations. After 1789, the French Revolution confiscated aristocratic and church property to finance the revolution.

Example: The Spanish conquest in the Americas seized gold, silver, and land from the indigenous peoples. In France, revolutionaries confiscated noble estates to fund the army.

4. 19th Century

How capital was taken:

Abolition of serfdom. Peasants were freed but often had to buy land, sometimes losing capital in the process.

Nationalization and land reforms. Some reforms redistributed land, sometimes forcibly.

Colonialism. Resource expropriation from colonies continued.

High taxes and levies. States imposed taxes to fund industrialization and armies.

Example: In Russia in 1861, peasants were freed but had to buy land from landlords. In India, the British confiscated lands and resources from local principalities and communities.

5. 20th Century

How capital was taken:

Socialist revolutions. In the USSR (1917), China (1949), and other countries, land and enterprises were nationalized, and private property was abolished.

Repressions and deportations. In the USSR, property was seized from kulaks and other repressed groups.

The Great Depression. In the US and Europe, taxes and regulations redistributed wealth.

Postwar reforms. Nationalizations of strategic industries in Eastern Europe and Latin America.

Corporate takeovers. In the 1980s—90s, transitional economies often experienced raider attacks.

Example: In the USSR, property was confiscated from landlords, capitalists, and church officials. In China, the Great Leap Forward and Cultural Revolution involved mass expropriation.

6. Modern Period (21st Century)

How capital is taken:

Nationalizations and privatizations. Some countries nationalize large enterprises, while others experience corruption and corporate raiding.

Financial sanctions. In international politics, assets of countries or individuals may be frozen or seized.

Anti-corruption and anti-money laundering. Assets are confiscated from those suspected of corruption.

Cybercrime. Capital can be stolen by hackers and fraudsters.

Example: Nationalization of the oil industry in Venezuela. In 1990s Russia, corporate raiding of enterprises was widespread.

If you’ve ever wondered how it’s possible to have so many generations behind you and yet today not own a single piece of property as inheritance – not a key, not a corner of land – here’s your answer…

Expropriation of Capital and Savings in Tsarist Russia (approximately until 1917)

Main methods and mechanisms:

Serfdom and corvée labor. Until 1861, peasants were serfs and belonged to landowners. They did not own land and were obliged to work for the landowner, giving a significant portion of their labor (corvée) and harvest (obrok). This effectively limited their economic freedom and prevented them from accumulating capital.

Redemption payments after the abolition of serfdom (1861). When serfdom was abolished, peasants were officially granted freedom, but the land was not given to them for free – they had to pay redemption payments to the state and landowners. This created a form of debt bondage and limited their economic opportunities.

Taxes and obligations. Peasant communities and merchants paid high taxes – poll taxes, trade duties, and military conscriptions. The state extracted a significant portion of their income.

Confiscations and fines. In cases of accusations of treason, uprisings, or other crimes, property could be confiscated. This particularly affected political opponents.

Economic dependence on landowners and state monopolies. Monopolies on salt, tobacco, and alcohol, as well as control over trade and industry, restricted opportunities for accumulation and free disposal of capital.

In Tsarist Russia, capital was expropriated through the system of serfdom, taxes, redemption payments, and strict control by the state and nobility.

Expropriation of Capital and Savings in the USSR (1917—1991)

Main stages and methods:

Nationalization and confiscation after the 1917 Revolution. After the October Revolution, all private property of large capital (land, factories, banks) was nationalized. Landowners and the bourgeoisie lost their property without compensation.

Dekulakization and confiscation from peasants. In the 1920s—30s, during collectivization, so-called “kulaks” – peasants with relatively large farms – were dispossessed, their property confiscated, and many were sent to labor camps or exile.

Repressions and seizures from “enemies of the people.” In the 1930s—50s, during Stalin’s purges, all property of those accused of “sabotage” or political crimes was confiscated: apartments, houses, and savings.