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Yes, the companies have a reputation to protect, but it’s also just a standard hype-cycle. If you pay attention to tech history these things always go in cycles like this.
Whether the tech is actually useful or not doesn’t actually matter. What matters is whether you can convince investors to fork over the cash with a shiny presentation.
The tech industry has basically habituated to surviving on selling us bullshit through hype cycles. I think it’s become dependent on them.