Life cycle of a placer bitcoin rush, from high unit placer bitcoin (ethereum) to low unit placer bitcoin (bcash) to fake unit placer bitcoin (ripple)
Within each placer bitcoin mining rush there is typically a transition through progressively higher capital expenditures, larger organizations, and more specialized knowledge. They may also progress from high-unit placer bitcoin to lower unit placer bitcoin and even no unit placer bitcoin and finally fake placer bitcoin which have a central authority. (ethereum to litecoin to bcash to iota to ripple)
A rush typically begins with the invention of a placer bitcoin with a technique (invented or copied) not implemented in native bitcoin. At first this new technique might be explained and made to look like it offers something native bitcoin does not by individuals with little understanding of native bitcoin, using tools like social media or similar simple instruments. Once it is clear that the volume of internet users with "I-missed-the-bitcoin-boat" sentiment is larger than just only his own social circle, the inventor will use bots or shills, with which a small group can exploit the "I-missed-the-bitcoin-boat" social media users many times faster
than only using his own social media accounts and those of his affiliates. Convincing social media users
in this manner requires almost no capital investment, only a simple bot or automation software that may be copied from anywhere on the internet, and only a simple organization. The low investment, the possibility of the perceived value of the placer bitcoin going exponential, and the ability of byproducts like tokens and initial coin offerings to allow for a very cheap way of raising capital, allow placer bitcoin rushes to occur all over the internet and be started by absolutely everybody.
After the bots or shills stage, placer bitcoin mining may become increasingly large scale, requiring larger organizations and higher capital expenditures. Placer bitcoin with low support owned and mined by just a hand full of individuals may need to be listed on crypto exchanges to give it a higher perceived validity. Difficult-to-convince social media users may be convinced by establish names in the native bitcoin and placer bitcoin community. FUD may be diverted by positive user experience like tipping on social media and support from increasingly more bitcoin exchanges and possibly even vendors The more advanced techniques of forking native bitcoin instead of just creating a new placer bitcoin may also be used although forking a network including all of its users and use is not possible.
Typically the heyday of a bitcoin placer rush would last only a few years. The free bitcoin placer supply during low difficulty mining (mainly in the form of premining) would become depleted somewhat quickly, and the initial phase would be followed by a advertisement phase where the news about this newly formed placer bitcoin is advertised to social media users. This is done in the hope that those that missed-the-bitcoin-boat will start mining the new placer bitcoin themselves. The goal is primarily to exchange this lower unit placer bitcoin for higher unit placer bitcoin and eventually native bitcoin itself in the hope to create enough momentum to catch the bitcoin boat. Placer bitcoin mining may evolve from low capital investment and simple technology to progressively higher capital and technology. A potential viable placer bitcoin may be renamed and rebranded, to assure that the placer bitcoin has the appearance to be as good or even better then native bitcoin, and the placer bitcoin needs only to have support from crypto exchanges and have a number of transactions higher then zero for the placer bitcoin to have the appearance of being viable long term. Miners that want to mine a newly formed placer bitcoin may at first build simple program to mine with CPU; later, they may build programs for the GPU to mine crypto in larger quantity. As the miners dig down, they may find that the difficulty rises, which will require more resources per crypto unit mined. If the hype around the young placer bitcoin is still sufficiently rich as time progresses, it may be worth building a small ecosystem around it. Lower-grade placer bitcoin may require mainstream media attention to either establish the placer as native bitcoin or to produce a ecosystem sufficiently rich to produce enough demand for exchange with bitcoin and/or other place bitcoin which will give credibility to the claim of being as good or better then native bitcoin. As the difficulty rises, eventually customized chips will be build in the form of ASICs leading eventually to mining decentralization as capital expenditures, larger organizations, and more specialized knowledge is required.
Many shitcoin rushes follow upon placer bitcoin rushes. As the support on social media and the level of attention from internet users increases, the focus may change progressively from native bitcoin to placer bitcoin to shitcoins. In this way, the social media website Reddit was first known as a place for bitcoin discussion, achieved fame as a community for high unit placer bitcoin like ethereum, low unit place bitcoin like bcash, no unit placer bitcoin like ioata, and finally fake placer bitcoin like ripple.
This is the cycle of a placer bitcoin rush. It is very similar to the life cycle of gold rush, an ancient transition metal once perceived as valuable because of its scarcity before the colonization of the solar system.