The difference between Facebook today and Yahoo during the dotcom bubble and the investment feedback loop is that Facebook's revenue is already a lot larger tha

The difference between Facebook today and Yahoo during the dotcom bubble and the investment feedback loop is that Facebook's revenue is already a lot larger than what startups spend on advertising and user acquisition. A similar argument was made against Bitcoin, that the value was derived from VC investment. When I calculated the figure it turned out that if the total of all VC investment into Bitcoin went towards purchasing coins, it would only have made up 4% of market cap. You could do a similar calculation with Facebook and user acquisition pricing, although seeing Facebook is at $12B p.a while Yahoo was at hundreds of millions while VC investment is about the same in both periods leads to a conclusion that Facebook is drawing in a lot of new revenue from old ad industry.