Have a read about the Dutch Tulip bulb bubble.
How much is a tulip bulb? Well, they were changing hands at a value equal to a man's annual salary at the height of the bubble, When you talk about value that is a difficult concept. What is the (fair) value of anything??
Computers and technology changed our lives and the way we do business. Pot has been around forever. With only limited outlets, the legal pot is a mere trickle compared to the illegal pot, and there will always be an illegal element. It grows like a weed. Literally anyone can grow it; no green thumb needed. If it all becomes legal, what's that going to do to price?
Are you really going to compare a software engineer to a grower?
Is hard to say what is the real value of a brand new industry like marihuana will be, but if u r thinking investing on pot stocks, treat them as penny stocks and play as well, like they are penny stocks, no sec filing, totally scam companies, pumps and dumps, with very few exemptions.
I have a question about this bubble. I will call it the "Internet Bubble" from here forward to emphasize that I'm mainly talking about Internet companies.
In the 1990's, people started having more and more access to the Internet as this infrastructure increased. So obviously there was going to be SOME growth in the Internet/computer industry as a whole.
Even though speculation drove market cap far above what the industry was worth at the time, the theoretical REAL-VALUE of the market cap of that industry no doubt had to have increased over that time period, would you agree?
So anytime that technological advancements or other factors essentially lead to the start of a new industry (such as the marijuana industry, for example), can it be said that there will usually be some speculative bubble in that industry, but overall the value of that industry as a whole will still increase nonetheless?
