The 1 in 1000 which succeeds would alone provide so much quality of life to society that while it's true that the 999 would see monetary value evaporate, ultimately what really matters is quality of life.
Think for instance about nuclear fusion. Many are trying. The contemporaries of the person who eventually gets it right who are also trying to make fusion happen will go bankrupt...but they are still better off than a world in which all of 1000 decided not to try and make fusion happen.
That's a true tragedy of the commons, the best thing for society is for everybody to try their ambitious ideas, whereas every individual is on the fence, not sure that others will also followthrough and everybody backpedals into searching for risk-free yield which beats inflation instead.