What was the “dot com bubble”, why is it often compared to recent digital scans and what did it entail?
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The Internet became readily available and very popular in the mid-to-late 1990s. It’s when people started subscribing to AOL and surfing around and tech businesses really started to boom.
And, a “bubble” in economic terms is when a part of the market becomes *too* big for what it can really support. It grows and grows and grows… then *pop*. Imagine if a hundred different shops just like Wal-Mart tried to set up storefronts in one town of like 50,000 people. Well, maybe for a while each of those shops would be making money as everyone tries to get the best deals and buy what they need. But eventually everyone’s going to realize that there’s really only like five shops that have good prices *and* have everything they need, so they’re gonna shop there and all the others are gonna go out of business.
That’s what the “dot com bubble” was, except it was specifically high-tech businesses and new digital shops and online services. It was like the Wild West, everyone was trying out new things, lookin’ for gold in every nook and cranny. Eventually things quieted down and all those businesses had to shut down because the market just couldn’t support them all.
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