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THE DOT COM BUBBLE : BURST OF THE centURY

  • The Dot Com Bubble, also known as the burst of the century, originated with the launch of the World Wide Web in 1989 and led to a rapid rise of internet and tech-based start-up companies in the 1990s.
  • These start-ups, known as dotcoms, lacked viable business models and relied heavily on funding from venture capitalists, lenders, and individual investors.
  • Investors overlooked warning signs and focused on traffic growth rather than fundamental factors, leading to an over-valuation of internet firms.
  • The bubble burst in 2000, resulting in a market crash, bankruptcies, and massive investor losses estimated at around $5 trillion.

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