What was the dot-com bubble and what happened when it burst?
In: Economics
Back then people were making money from early implementations of online shopping and services. People started seeing web commerce as a licence to print money and were keen to jump onto the bandwagon. Like other “bubbles” it developed a momentum of it’s own and lack of critical analysis led to investments that didn’t stack up against likely returns. It’s never really burst and is still happening to a certain extent, there are many internet-based companies whose profits are well below the return on investment ratios that would be expected from a bricks-and-mortar company.
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