No so, says CardLinx CEO Silvio Tavares in Benzinga today. Here is an excerpt from the article:
…if you look closely, one realizes that a severe downturn in the Silicon Valley economy will not be happening any time soon, and certainly not before the end of this year. The reason is that many of the new breed of Silicon Valley startups power a very significant and new money-making machine – the Internet of Commerce Things (IoCT). The IoCT refers to the next new thing from the valley: wearables, watches, home appliances, cars and anything that is connected to the internet that allows you to purchase what you need, when you want it. IoCT has been transforming the Silicon Valley economy since the last dotcom bubble burst.
Examples are everywhere. Need to hail and pay for a taxi but don’t have any cash? Just use Uber. Need to pick up some milk after your morning run, but forgot your wallet? Just use your mobile phone. One example is Loopay, acquired by Samsung and now integrated into every Samsung Electronic OTCSSNLF smartphone and Gear smartwatch. How about booking and paying for a private home for your vacation instead of paying hotel charges? Just use Airbnb.
The second reason that the dotcom bust won’t come this year is more technical. Investors continue to need to deploy capital in our ultra-low interest rate environment in order to get the kind of returns their shareholders demand. As investors seek new companies to park their investment dollars, products and services in the IoCT ecosystem become increasingly attractive because these companies actually produce revenue.