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garrisonj 13 hours ago

It’s important to keep in mind that railroads, airplanes, and the internet also caused bubbles.

Just because of an invention is useful and world changing doesn’t mean it won’t cause a bubble.

TheAlchemist 12 hours ago | parent | next [-]

Exactly that. There was a very nice talk by Warren Buffett explaining that to business leaders at the height of the dot-com bubble - if I remember correctly it's full text is the introduction to his biography 'The Snowball: Warren Buffett and the Business of Life'.

Airlines are a great example - they are everywhere, nobody can imagine life without them, and yet they are yet to make any money ! Maybe they will figure it out before oil runs out on planet Earth.

As for Buffett speach - ther is a specific quote about airlines in it: "If a capitalist had been present at Kitty Hawk back in the early 1900s he should’ve shot Orville Wright"

atleastoptimal 12 hours ago | parent [-]

They make no money because competition has essentially turned them into commodities. There is no differentiation thus no producer or consumer surplus.

somewhereoutth 13 hours ago | parent | prev [-]

Conversely, just because an invention causes a bubble doesn't mean it is useful and world changing.

ashwinsundar 12 hours ago | parent [-]

What are some examples of this?

brazukadev 11 hours ago | parent | next [-]

Blockchain is a strong candidate

somewhereoutth 4 hours ago | parent | prev | next [-]

Tulips? NFTs? South Sea Bubble? Mortgage Backed Securities and derivative products (CDOs etc)? Beanie Babies?

hackable_sand 12 hours ago | parent | prev [-]

LLMs, for instance