The "mountain bicycle" is hard to define as "invented" since it evolved from cyclo-cross and by riders taking modified beach cruisers and riding them downhill. A company originally comprised of Gary Fisher and Charlie Kelly in 1979 was the first company to specialize in modifying cruisers for use as mountain bikes. They would use components for touring bicycles, some motorcycle parts like brake levers and handlebars and turn bicycles such as the Schwinn Excelsior (Fisher's first "mountain bike"). This company was called "MountainBikes". The first production mountain bike, and what most resembles what we know a mountain bike to be today, would be the Specialized Stumpjumper released in 1981. Specialized was a company that evolved from Fisher and Kelly's "MountainBikes" when they brought on famous frame builder Tom Ritchey to build a frameset specifically for the use of Mountain Biking. There's actually one of these original Stumpjumper bicycles on display at the Smithsonian.
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Around 30 years ago.
Mountain biking originated in California in the late 1960's to early 1970's. Gary Fisher introduced the first official mountain bike in 1979. The first mountain bikes were produced with 18 speeds and rim brakes. Newer bikes typically have between 24-27 gears and disc brakes, which offer greater stopping power and require less maintenance than rim brakes.
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Around 1976 I was living halfway up Grouse Mountain, North Vancouver when I began to see the first fanatics with mountain bikes.