Comment on AI Is Starting to Look Like the Dot Com Bubble
Snapz@lemmy.world 10 months ago
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 blockchain, followed by nfts, followed by metaverse and now back to AI again
higgsone@lemmy.world 10 months ago
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.
qwertyWarlord@lemmy.world 10 months ago
Crypto is 100% a bubble. It’s not an investment so much as a ponzi, sure you can dump money into it and maybe even make money, doesn’t mean it doesn’t collapse on a whim when someone else decides to dip out or the government shuts it down. Its value is exactly that of NFT’s because it’s basically identical, just a string of characters showing “ownership” of something intangible
stealin@lemmy.world 10 months ago
Whatever man used electricity will become valuable someday, I just know it.
Freesoftwareenjoyer@lemmy.world 10 months ago
Being able to pay for things anonymously is very valuable to me and to many other people. That’s just one example of what this technology can be used for.
Patius@lemmy.world 10 months ago
It’s not even a ponzi scheme, it’s just a good old fashioned bubble.
It’s digital tulips.
Platomus@lemm.ee 10 months ago
The only way for someone to make money in crypto is for someone else to lose it.
Crypto is a scam.
Aagje_D_Vogel@feddit.nl 10 months ago
Reminds me of money.
Platomus@lemm.ee 10 months ago
What is that even suppose to mean in this context?
higgsone@lemmy.world 10 months ago
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.
bigschnitz@lemmy.world 10 months ago
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 to cost of the asset. Crypto generates 0 profit, so it has 0 value as a capital investment.
CustodialTeapot@lemmy.world 10 months ago
Sooooo, the exact same premise with ehmmmm… Stocks.
TurtleJoe@lemmy.world 10 months ago
You don’t understand how stocks work.
Freesoftwareenjoyer@lemmy.world 10 months ago
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.
TurtleJoe@lemmy.world 10 months ago
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.
qaz@lemmy.world 10 months ago
And what is the underlying mechanism that increases its value, like company earnings are to stocks?
higgsone@lemmy.world 10 months ago
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.
bigschnitz@lemmy.world 10 months ago
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.
aesthelete@lemmy.world 10 months ago
A) the government backing it up along with its advanced military
B) the fact that you have to pay taxes in it