by Mark St. Cyr •
The warning signs have been everywhere since the beginning, growing ever clearer with each new valuation round, IPO launch, and earnings cycle emanating from Silicon Valley.
Like a phoenix rising from the ashes of the post Dot-Com ruins people were told not only was it “different this time,” they were also instructed to observe even the phoenix bird itself had morphed into what is now commonly referred to as a “Unicorn.” And any comparisons to the prior meltdown in the land of Dot-Com were met with howls and scowls of, “You just don’t get it!” or worse.
The real issue was, it had nothing to do with “getting it.” It’s all been about Silicon Valley itself acting and arguing as if the past were irrelevant. Now many are coming to a very stark realization that the Valley may in fact once again have repeated all the same mistakes.
Far too many believed all their own press; and acted, spent, and mal-invested in ways that may eclipse the prior folly. Yes, welcome to Dot-Com 2.0. Where unicorns and more are bursting into spontaneous combustion in ways far more spectacular than previous. For it can all be viewed and commented on via the very creation that fueled it: Social media. I garner the news of this unravel will overtake these platforms with a speed, viewership, and voracity that could make the Kardashians jealous.
Another issue that will have an ever-increasing, devastating impact than The Valley currently realizes is: the all encompassing psychological impact such a bursting of a meme can spread and infect the minds of those that bought into all the fairy-tale hype, and pinned their tails on the Unicorn riches they assumed was surely theirs.
After all, if you listened to many now residing within the Valley one could argue that almost to a person today’s newest manifestation of millennial birthright is: Coding = A King’s ransom with a castle in the hills teaming with movie and rock stars, swim suit models, garages filled with exotic cars, and pools or fountains overflowing with champagne. All made possible with shares paid in lieu of salary at the next inevitable IPO cash out in perpetuity. Sadly, many are going to find out differently.
Read the rest at: http://markstcyr.com/