How Tech Bubbles Accelerate Innovation
Is there a bubble in artificial intelligence? Are we in a virtual reality bubble? Are Uber and Airbnb overvalued? Or, are we even in another tech bubble?
Given the unprecedented valuations of the so-called “unicorns” — Uber is still valued at more than $60 billion, Airbnb at $25 billion, and Palantir at $20 billion — talk about bubbles has intensified in Silicon Valley. Bubbles are often considered to be negative: they are described as destructive, economically inefficient, and as generating financial waste. Indeed, almost $6 trillion evaporated after the dotcom collapse in the early 2000s, and the globalized financial system crashed when the financial bubble burst in 2008.
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