Gold, and Bitcoin are the next big trend from the California Gold Rush to Artificial Intelligence and Bitcoin the smartest investors aren’t always the ones striking gold.
They’re the ones selling the tools that help others dig for it.
That’s the essence of the “picks and shovels” trade an old strategy that has quietly built fortunes for over a century. And today, in 2025, it’s alive and thriving across every major investing boom: gold, and crypto.
Let’s break it down.
The Origin: The Gold Rush That Made Toolmakers Rich
Back in the California Gold Rush of the 1800s, tens of thousands of people risked everything to find gold.
Most walked away empty-handed.
But a few made millions not by mining gold, but by selling picks, shovels, pans, and tents to those who did.
Companies like Levi Strauss (yes, the jeans company) and Samuel Brannan built empires simply by serving the gold miners, not joining them.
The lesson stuck:
“In every boom, the safest bet isn’t the treasure hunters, it’s the ones selling them the tools.”
Fast Forward: The “Picks and Shovels” of the AI Revolution
Today’s gold rush is Artificial Intelligence and once again, it’s not always the flashy apps or chatbots making the real money.
It’s the infrastructure providers behind the scenes.
Think about it:
- NVIDIA sells the GPUs that power AI models.
- TSMC and ASML build the chips and machines those GPUs depend on.
- Amazon Web Services (AWS), Microsoft Azure, and Google Cloud rent out the cloud servers that train and host AI systems.
While thousands of AI startups will come and go, these companies profit from every single one of them.
Every time a new AI project launches, data centers expand, chips are bought, and power grids are upgraded and the “picks and shovels” companies get paid.
That’s why NVIDIA’s stock skyrocketed over 200% in 2024, and why chip demand is still expected to soar through 2026.
They don’t care which startup wins they win either way.
Bitcoin: The Digital Gold Rush
The same principle plays out in crypto.
When Bitcoin surged to new highs, who made the most predictable profits?
Not the traders chasing price swings but the miners, exchanges, and infrastructure builders who keep the ecosystem running.
Examples of the crypto “picks and shovels” trade:
- Bitcoin mining companies like Marathon Digital and Riot Platforms profit from processing transactions and securing the blockchain.
- Exchange platforms like Coinbase earn from trading fee, no matter if the market goes up or down.
- Hardware and energy providers supplying mining rigs, cooling systems, and data center space profit continuously.
Even in bear markets, these companies can survive and adapt, while speculative projects vanish overnight.
Owning the infrastructure not just the coin remains the more stable long-term bet.
Gold, AI, and Bitcoin: Same Playbook, New Frontier
Across all three industries: gold, AI, and Bitcoin one pattern repeats:
| Industry | The “Gold Rush” | The “Picks & Shovels” Winners |
|---|---|---|
| Gold (1800s) | Gold miners | Levi Strauss (tools, jeans), hardware suppliers |
| Artificial Intelligence | AI startups and apps | NVIDIA, TSMC, AWS, ASML |
| Bitcoin & Crypto | Traders and speculators | Coinbase, mining firms, chipmakers |
The key is simple:
Infrastructure doesn’t depend on hype it profits from it.
Every time there’s a boom, whether it’s digging gold, training AI, or minting Bitcoin, someone needs the tools, hardware, and platforms to make it happen.
The Modern Investor’s Lesson
For smart investors, the takeaway is timeless:
“Don’t chase the hype. Own the infrastructure.”
Instead of asking which AI app or which coin will explode next and ask which company sells the tools they all need.
That’s where sustainable wealth is built.
And as technology evolves, new “picks and shovels” will always appear:
- Data centers powering the next wave of AI.
- Chip foundries supporting quantum computing.
- Blockchain infrastructure managing tokenized real-world assets.
In every new boom, there’s always a toolmaker waiting to win.
Gold, AI, and Bitcoin may look worlds apart, but they all prove the same timeless truth:
The people who build and sell the tools will always profit, no matter who wins the race.
Whether it’s a 19th-century miner, a 2025 AI startup founder, or a crypto trader fortunes come and go.
But the “picks and shovels” companies keep cashing in.
