Yes, it’s a bubble, but it's more like a piñata than a soap bubble. When it pops there will still be things inside it in order to build another one. Yes, a lot of investors may lose money, and the market may take a hit, but the average investor is not going to get nearly as screwed as they have been before. Like the housing "bubble," it will be more of a market correction than a "poof."

When the bubble burst last time, guess what? The internet was still there, and the number of users kept growing because of the choices in services for consumers, and a large number of uneducated investors were affected.

Last time, the implosion hit ad spending on the internet hard. Old school marketers retreated to the safe harbors they knew--  traditional. They were proven and safe. Good ol’ print; nothing beats print. But they have grown wise or grown old and have been replaced. It’s new school marketers now, and when the bubble bursts, we’ll go running for different cover. Good ol’ search; nothing beats search.

This time we'll clear out a number of venture capitalists and investors, and we'll have another round of startup victims who will have learned a valuable lesson. They'll bring that newfound knowledge into more established internet companies, infusing them with new ideas-- just a little more tempered by experience.