Eli5 the ‘dot com bubble ‘ and why it burst in the early 2000s?

Question

EDIT: thanks for all these brilliant responses. Hits great to get the various perspectives. Upvotes are on me!

In: 13

Answer 1

You know how people say if only i put X amount of money in amazon back then. The problem is that there were 1000s of little amazon back then and you dont know which one will win. Basically the internet was seen as a gamechanger to everyday life (which i would agree with) and thousands companies were given tremendous capital. When the dust settled there were 3 major players left. This is nothing unusual, it happens all the time.