As the AI market continues to balloon, experts are warning that its VC-driven rise is eerily similar to that of the dot com bubble.
As the AI market continues to balloon, experts are warning that its VC-driven rise is eerily similar to that of the dot com bubble.
Did you mean the crypto/NFT bubble?
Yeah I was going to say VC throwing money at the newest fad isn’t anything new, in fact startups strive exploit the fuck out of it. No need to actually implement the fad tech, you just need to technobabble the magic words and a VC is like “here have 2 million dollars”.
In our own company we half joked about calling a relatively simple decision flow in our back end an “AI system”.
crypto and nft have nothing to do with AI, though. Investing in AI properly is like investing in Apple in the early 90’s.
ultimately it won’t matter because if we get AGI, which is the whole point of investing in AI, stocks will become worthless.
“stock will become worthless”
I’m thinking the opposite might happen.
If big companies succeed in capturing the knowledge workers market share and transferring all those salaries into their own profits then it will be reflected in the stock prices of those big companies. People, mostly currently rich people, who own those stock will benefit.
Same as it ever was for other forms of automation or job outsourcing. Why would this be any different?
They meant in the sense that crypto/nft was the last fad that VCs were throwing money at.
It’s actually hilariously transparent how dumb VCs are and how much tech companies exploit that. Every now and then they randomly get hyped by some big tech company over some ‘new’ Y idea, then suddenly they throw money at any company suggesting they are doing Y thinking they will be the next Google or Meta. Then they inevitably doesn’t materialise and they move onto the next fad.
Through the years I’ve been in the industry we’ve had Big Data, followed by AI, followed by Cloud, followed by blockchain, followed by nfts, followed by metaverse and now back to AI again. And the tech companies don’t even need to implement any of this they just have to find a way to spin what they are doing to make it sound like the fad is what they’re doing.
NFTs yes but crypto is absolutely not a bubble. People are saying that for decades now and it hasn’t been truth. Yes there are shitcoins, just shitstocks. But in general, it’s definitely not a bubble but an alternative investing method beside stocks, gold etc.
What is the underlying mechanism that increases its value, like company earnings are to stocks? Otherwise, it’s just a reverse funnel scheme.
What’s the underlying mechanism that gives money a value? We the humans give money and gold a value because we believe they’re valuable. Same with crypto. Bitcoin is literally like gold but digital. Stop saying what everyone without knowledge says and inform yourself. Not only about crypto, also about money etc.
If you don’t understand the fundamentals of money, how can you judge something of being scam. There are lot of people here who didn’t even understand how money and gold works.
Money has value insofar as governments use it to collect tax - so long as there’s a tax obligation, there’s a mandated demand for that currency and it has some value. Between different currencies, the value is determined based upon the demand for that currency, which is essentially tied to how much business is done in that currency (eg if a country sells goods in its own currency, demand for that currency goes up and so does it’s value).
This is not the same for crypto, there are no governments collecting tax with it so it does not have induced demand. The value of crypto is 100% speculative, which is fine for something that is used as currency, but imo a terrible vehicle for investment.
You are right in that it increases people’s belief in money because it is the primary source of revenue for states. But if the majority of people did not believe in the piece of paper, it would be worth nothing. That is the fundamental value of money as we know it.
There have been states where stones were the currency simply because the inhabitants believed in them.
Gold Standard
Linking money to a material with intrinsic value for it’s value
Gold has intrinsic value
US Dollar moved to be a Fiat Currency
US Dollar is backed by a Government
Crypto has zero intrinsic value, not linked to anything with intrinsic value, and not backed by a Government
Crypto is an imaginary “item” some people want to have valve. Value is created because of this want.
US Dollar is legal tinder for all US debts, Crypto is not
Crypto is not a currency but a digital commodity
Money and gold have value because they can be exchanged easily for goods and services that are really wanted. As long as crypto currencies make it hard to trade for goods ands services, they will be, at best, a fad, at worst, a scam. There needs to be market for crypto to work. All I see is promises, no real commitments to it.
All I ever see around crypto is this vague notion that it could someday be acknowledged and used widely as real money is. But so could bottle caps. I don’t see the mechanism for how it realistically happens. It’s no less a moonshot than it was 3 years ago, IMO.
Just because a lot of people are buying into crypto doesn’t make the underlying inefficiencies in its design (depending on the coin) disappear and make way for common usage. As it stands now, cryptocurrencies are basically glorified ponzi schemes. The people nonstop defending them deserve to be treated with constant skepticism because they have skin in the game and know there’s nothing preventing them from losing it all. It’s in their best interest to believe in it and spread that belief.
I recall hearing it was illegal to burn money 😉
I don’t know if it’s good investment or not, but cryptocurrency has uses that are valuable to a lot of people. You can send money to other people without using a bank or PayPal and you can pay for things online anonymously. Some cryptocurrencies might have additional properties like Monero, which also gives you privacy. NFT might also have practical uses some day - for example it could be used for concert tickets.
Did ChatGPT write your comment?
Do you not have anything constructive to say?
A) the government backing it up along with its advanced military
B) the fact that you have to pay taxes in it
Yep, which is why Bitcoin can’t last forever without turning into some sort of GovCoin for it to truly replace money
The only way for someone to make money in crypto is for someone else to lose it.
Crypto is a scam.
Reminds me of money.
What is that even suppose to mean in this context?
So what’s the difference to money, stocks or every other investing option? There’s has to be someone who loses so someone different can win. We’re living in a capitalistic system, that’s how it works.
Stocks pay dividends to their shareholders. Stocks also represent portions of companies that make other things.
Basically you’re saying that crypto is like a shitty stock that doesn’t pay dividends, doesn’t generate a profit, makes nothing, is not actually valuable, and is only worth what you can sucker someone else into paying for it. I agree.
But I also wouldn’t “invest” in such a stock.
Money isn’t an investment, it’s a currency. Of course it’s a bad investment and investing in forex is barely a better investment than crypto (purely because there’s less risk of a sovereign currency devaluing to 0).
Investing in capital, like stocks, property, equipment etc does not require someone to lose money for the capital owner to profit. If I invest in a stock, each year I’m paid a dividend based on the profits of that organisation - no losers required. I could later sell that stock at the exact price I paid for it and come away with profit from those dividends. What determines whether it’s a good or bad investment, is the ratio of profit to the capital owner compared to cost of the asset. Crypto generates 0 profit, so it has 0 value as a capital investment.
Every crypto trader that is clueless about actual investing thinks that dividends don’t exist for some reason.
Sooooo, the exact same premise with ehmmmm… Stocks.
You don’t understand how stocks work.
How is distributed ledger a scam? It’s nothing new and we know exactly how it works. It has nothing to do with making money. If I use it to pay for things online how am I getting scammed? I’m sorry, but it seems you don’t fully understand what this technology is.
The blazing fast technology that allows for up to 7 transactions a second worldwide? Amazing.
Don’t forget to pay your capital gains tax when you sell your butts online to buy your pizza.
The slow transaction speed is a valid criticism, but it doesn’t make this technology a scam. Different cryptocurrencies have different speeds. With Litecoin I think it takes me 40 minutes to pay for something. I still prefer that over being tracked by my bank or having to use PayPal. I think you can pay instantly with Dash, but I haven’t used it.
I don’t sell anything online, so what are you talking about?
Line goes up
That video is probably the biggest piece of misinformation about cryptocurrency on YouTube and it’s sad to see that so many people have been fooled by it. Most people are so bad at understanding modern technology that they will believe a random youtuber who has no idea what he is talking about :(.
Cryptocurrency is just a distributed ledger. NFT is just a certificate of ownership. Those technologies have real uses and nothing about them makes them a scam.