pretty simple. a laser pointer isn’t nearly as “collimated” as industrial lasers. collimation is essentially focusing the light to a very narrow cylindrical shape with most of the light having the same polarization. because it’s not “focused” the beam has more of a cone shape and gets wider with distance. also, the air has water value in it which further diffuses the light.
so the answer is: it fades and is ultimately scattered by the atmosphere. however, it’s still a laser and does have a very very narrow beam, so it can go hundreds of feet and still maintain a lot of intensity.
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