It’s not surprising to me that almost every movement in tech is correlated with some sort of oversupply.
- Dotcom boom – huge supply of people flooding the internet wanting to explore, shop, be entertained
- Mobile boom – huge expansion of connected hours with people in smart phones, and cost of risk was low b/c the economy was poor from GFC
- Crypto boom – people had excess time and money from pandemic and stim checks
- AI boom – lots of laid off tech workers who know how to build, and it takes less effort to build (supply of brains and time.)
Businesses are built on demand, but booms are fueled by supply.