What was the dot-com bubble and what happened when it burst?
In: Economics
The internet was a fun,new, and shiny type of toy. So when people made these new toys, everyone went crazy for them and was willing to spend lots and lots of money. Even simple little toys were very expensive.
Then one day, when all the toys were incredibly expensive, some people pointed out “hey are these actually as good and fun* as people think?”.
The toys were not as good and fun* as people thought, and the people who had paid lots and lots of money for the toys then found that their toys weren’t worth anything anymore.
*”Fun” in eli5 terms being money returned on initial investment in not eli5 terms.
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