News Analysis: Cash being ‘Invested’ in “Silicon Valley” Information Technology (IT) Companies, in particular, apparently is no longer based on proficient new technologies, rarity of supply, nor Product Sales profitability to the creators. As such, Technology Gambling in ‘Holographic Casinos’ may provide a thrill; but will provide a chill to many Investors.
Today, many business fundamentals have been tossed aside for ‘Sound Bites ‘ about future Software Success. Pitchmen, like those of the past who operated ‘Ponzi Schemes’ are bragging about their ‘Future Great “App”‘ which will revolutionize modern living’. Listeners, often technically unsophisticated individuals with money, toss millions of their dollars towards the Gypsters [as one would enthusiastically bet on the spin of a roulette wheel].
Rather than performing “Due Diligence” on the need for the product, its cost relative to the need, and its sustainability in future years of its user, Investors disregard ‘Business Fundamentals’. They open their pocketbooks and let the money flow.
‘IT’ Products so similar in scope, as to almost be violations of Copyright Laws, are offered to the public. Essentially there are ‘Iterations of Iterations’ being offered in the “Holographic Casinos” much like the same plethora of Electronic Slot Machines in actual ‘Gaming Emporia’.
The problem with this scenario is that the ‘Supply’ of “Same-O’s” exceeds the ‘Demand’ for such. As a consequence, like falling Dominoes, ‘Failures over Time’ are assured for Investors.
International Investors should ask: “Is what is being offered, to gain my money, really unique, useful, and sustainable as a selling product over time?” If it is not, then we suggest they take a portion of the amount they were planning on spending and enjoy their time in actual “Bricks and Mortar” Casinos rather than Silicon Valley’s “Holographic Gaming Establishments”; the odds of winning may be better [or at least they will have had some fun].
Reality.
Reference: http://www.bbc.com/news/business-29653830