What is the .com bubble? And why did it burst?

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What is the .com bubble? And why did it burst?

In: Economics

6 Answers

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A bubble is when something’s value is artificially inflated due to hype. People think it is worth more than it really is for reasons that have nothing to do with its actual value. During the .com bubble, many people thought that internet companies were worth a lot and invested a lot of money in them. The bubble burst when, and because, people came to realize the true value of what they had invested in was inflated.

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