Do you know what the current problem is with a huge number of tech stocks/companies/crypto/AI? And why many of them are literally going to lose all their value?
Their valuation was initially made at the peak / based on expectations / or the expected benefits and profits they would bring.
As a result, a huge number of these are valued at tens of billions of dollars.
And now, in the context of technology/AI/crypto and all this junk, an interesting story emerges.
The expectations and theoretical profits did not come true at all.
If you closely examine these cases, their actual profit is, for example, only $30–$100 per day.
As a result, they cannot even pay their employees or sustain themselves.
Even spending $20,000 on something valued at $5–10–20 billion is often critical for them.
All they are looking for is investors to put money into them, and essentially, they just keep consuming themselves.
Thus, they invent fake hacks, glitches, and so on, just to personally sell a stake to survive.
It naturally turns out that there are hundreds of such cases.
On paper, we have a huge pile of companies/projects/startups valued at billions.
In reality, the daily profit from their product is literally less than that of an average worker.
Because it turns out that we don’t need 1,000 AI intermediaries, assistants, projects, or tech solutions that nobody even asked for.
And people, losing 90% of their investment in such a company, might not want to let it go, hoping to at least break even.
Here comes an interesting nuance:
You invested $100.
You lost 90%.
Now you have $10.
You need a 900% growth to get back to breakeven.
Studying a bunch of tech startups every day, I’m literally shocked.
By their unreasonable valuations and expectations.
And by the record-low profits they actually generate.
Based on this—their uselessness.
Alright, I’m going to sleep.
