Innovative products lead to a boom in imitation and often a bust - just look at Atari and Bitcoin

Innovation can lead to a boom in imitation, as other companies seek to replicate the success of the original innovator. This can result in a saturated market, where there are too many similar products or services vying for the same customers. This can lead to a bust, as the demand for the products or services may not be sufficient to sustain all of the companies that are offering them.

One example of this is the video game industry in the 1980s. Atari was one of the first companies to produce home video game consoles, and its success led to a boom in imitation. Many other companies began producing their own video game consoles, which resulted in a saturated market. Eventually, the demand for video game consoles declined, and this led to a bust in the industry.

Another example of this is the cryptocurrency market. Bitcoin was the first and most well-known cryptocurrency, and its success led to a boom in the creation of other cryptocurrencies. This resulted in a crowded and highly competitive market, with many different cryptocurrencies vying for the same customers. This has led to a bust in the market, as the demand for cryptocurrency has not been sufficient to sustain all of the different coins that are available.

In both of these examples, the initial innovation was successful and led to a boom in imitation. However, the market eventually became saturated, and this led to a bust. This demonstrates the risk that companies face when they enter a market that is already crowded with competitors.