# Dot Com Bubble 2.0

**URL:** <https://www.ruby-forum.com/t/dot-com-bubble-2-0/69140>\
**Category:** Ruby\
**Created:** [September 18, 2006, 10:57pm UTC](https://www.ruby-forum.com/t/dot-com-bubble-2-0/69140 "2006-09-18T22:57:10Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Phlip](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/p/ed8c4c/32.png) [@Phlip](https://www.ruby-forum.com/u/Phlip)\
**Post date:** [September 18, 2006, 10:57pm UTC](https://www.ruby-forum.com/t/dot-com-bubble-2-0/69140/1 "2006-09-18T22:57:10Z")

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Rubies:

While I join the crowds bubbling with enthusiasm over RoR, AJAX, and our  
new  
version of the Web economy (uh, Web 2.0 to some)…

…I think we might pause to consider how these easy technologies and  
low-bid venture capital just might be setting us up for another, smaller  
bubble, followed by another, smaller correction.

There. It’s over; I stopped considering it. Back to the party!

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**Author:** ![Phlip](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/p/ed8c4c/32.png) [@Phlip](https://www.ruby-forum.com/u/Phlip)\
**Post date:** [September 18, 2006, 11:17pm UTC](https://www.ruby-forum.com/t/dot-com-bubble-2-0/69140/2 "2006-09-18T23:17:11Z")

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On 9/18/06, Phlip [removed\_email\_address@domain.invalid](mailto:removed_email_address@domain.invalid) wrote:

> Rubies:
> 
> While I join the crowds bubbling with enthusiasm over RoR, AJAX, and our new  
> version of the Web economy (uh, Web 2.0 to some)…
> 
> …I think we might pause to consider how these easy technologies and  
> low-bid venture capital just might be setting us up for another, smaller  
> bubble, followed by another, smaller correction.

You’re not going to see real serious money coming into this until the  
IPO window opens back up. If it ever does.

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**Author:** ![Phlip](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/p/ed8c4c/32.png) [@Phlip](https://www.ruby-forum.com/u/Phlip)\
**Post date:** [September 19, 2006, 12:37am UTC](https://www.ruby-forum.com/t/dot-com-bubble-2-0/69140/3 "2006-09-19T00:37:19Z")

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Philip,

This bubble is a different creature.

The first bubble had plenty of VC money, and companies had it easy, no  
profit, no problem! No business model, who cares!

Most web2 companies have some type of reasonable business model… they  
are actually delivering useful products, and some of them have been  
profitable from the start, or close to the start! Compare that with  
the Web1 Bubble where literally hundreds of companies had NOTHING to  
offer, even less a profit!

So yes, there is a bubble, but a different bubble, I would say this one  
will have a very small correction, if any at all, mostly because of  
competition and over-saturation of some markets like social software  
and tag-land. Web2 companies seem to finally have a clue, that a  
business is supposed to deliver a service, pay salaries, make sales,  
and yes… make a profit too : )

My 2 cents.

Jose L. Hurtado  
Web D.  
Toronto, Canada