Artificial Bubbles

Two phenomena have dominated the tech news the past months: bitcoin and AI. Both technologies are overhyped at this moment, but their impact on our lives will become pervasive. New opportunities will arise for media tech companies.

The bitcoin frenzy of the past couple of months has created a bubble, which is similar to the dotcom bubble back in 1999, when I launched my first startups. With skyrocketing valuations, starting internet companies were overloaded with cash. Having a hard time to meet the expectations, the dotcom bubble eventually burst in 2001, eradicating a lot of startups and leaving many investors with an unhappy feeling.

But this frenzy and goldrush opened up the way to a large number of new companies. The period after the bubble burst was actually more interesting, and in many ways also more rewarding. Survivors of the dotcom bubble, such as Amazon, GoDaddy and Priceline, were built on solid foundations of revenue generation, cost management and customer focus. They thrived and eventually turned into multi-billion dollar companies.

Read the rest of this article from Twipe CEO Danny Lein in Trends in Digital Publishing, out now.
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