Re:Ask HN: Are we still in a tech bubble?
by nostrademons on Wednesday December 27, 2017 @07:46PM
(#16019412)
Nah, it's deflating in a relatively soft landing, though returns for most VC funds in the next few years are probably going to suck.
Most bubbles only really affect the people who buy in at an inflated price (the 2009 mortgage crash was an exception because there was so much counterparty risk that it nearly took down the whole financial system). Dot-com bubble made several retail investors lose their life savings, but if you didn't invest in dot-coms and didn't work for them, you probably weren't affected. Web 2.0 bubble meant that several young founders (myself included) had to go get real jobs. The mobile bubble is going to hurt the funds & accelerators that invested in these companies, and they may not be able to raise again, but outside them most people will go on with their lives.
Crypto bubble will likely be the same - folks who buy in at an inflated price now can expect to lose everything they invest, but losses will be limited to that. I know a bunch of people who have invested (again, myself included), but don't know of anyone who's put in money they can't afford to lose. I've heard it's different in South Korea.
Most bubbles only really affect the people who buy in at an inflated price (the 2009 mortgage crash was an exception because there was so much counterparty risk that it nearly took down the whole financial system). Dot-com bubble made several retail investors lose their life savings, but if you didn't invest in dot-coms and didn't work for them, you probably weren't affected. Web 2.0 bubble meant that several young founders (myself included) had to go get real jobs. The mobile bubble is going to hurt the funds & accelerators that invested in these companies, and they may not be able to raise again, but outside them most people will go on with their lives.
Crypto bubble will likely be the same - folks who buy in at an inflated price now can expect to lose everything they invest, but losses will be limited to that. I know a bunch of people who have invested (again, myself included), but don't know of anyone who's put in money they can't afford to lose. I've heard it's different in South Korea.