All investment is kind of speculative: you're betting on the future, but typically for a reason.
A bubble, IMO, is what emerges when lots of people bet on the future purely because they see others betting on the future. People often don't realise they're doing it, like the people building AI SaaS apps. They think they're going to get rich because they think everyone is using the bubble tech.
Most of the apps are rubbish and could be implemented with something other than AI, same as a lot of crypto apps or dotcom websites in the bubble periods.
They look like they're useful in the bubble, because they're getting regular customers (as everyone comes in to try this newfangled AI/Crypto/dotcom tech) but once everyone's tried it, the only people who come back are the ones with the actual use for it, and there's never enough use to support the hype created in bubbles.
Cyclical speculative investment.
All investment is kind of speculative: you're betting on the future, but typically for a reason.
A bubble, IMO, is what emerges when lots of people bet on the future purely because they see others betting on the future. People often don't realise they're doing it, like the people building AI SaaS apps. They think they're going to get rich because they think everyone is using the bubble tech.
Most of the apps are rubbish and could be implemented with something other than AI, same as a lot of crypto apps or dotcom websites in the bubble periods.
They look like they're useful in the bubble, because they're getting regular customers (as everyone comes in to try this newfangled AI/Crypto/dotcom tech) but once everyone's tried it, the only people who come back are the ones with the actual use for it, and there's never enough use to support the hype created in bubbles.