With all the billion dollar valuations flying around the tech industry these days, it’s easy to lose sight of an important reality: Many (if not most) of these companies aren’t actually making money. I’m not going get into the whole bubble debate, but instead, there is a fundamental assumption that most of us (and certainly these investors) seem to be accepting without question.
The economics of attention are not necessarily transferrable into the economics of dollars. We apply the same economic theory and faith in attention as we do in dollars, but they are not identical systems. Attention economics has certain incentives, trends, and functions that are different from dollar economics.
We are flying somewhat blind here; entering new economic territory without recognizing that our surroundings are unfamiliar. I’m pretty sure the #1 rule for gambling is to not to play a game you don’t know. Might not be the best time to be throwing money at a system we at best don’t yet understand, and at worst have convinced ourselves we do.
