What is the .com bubble? And why did it burst?
In: Economics
The explosion of the world-wide-web in the early 90’s brought the promise to completely revolutionize global commerce. It was obviously the new/exciting/extremely popular thing, so of course it can be monetized…
Investors believed that just about anything could make money online, so they threw money at anything and everything. You could create a business model around sending free virtual birthday cards, and somehow manage to convince investors to throw you a few million venture capitol. You blow that money on fancy offices and fast cars, and live the dream of being a millionaire internet entrepreneur. This was the “bubble”.
It burst when enough time passed that the majority of these businesses ran out of venture capitol, and failed to present any sort of actual profit. The majority of the businesses folded, and only the ones that actually provided a real valuable service survived.
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