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Dot.com to Dot.bomb

The internet’s whole entire dynamic changed with the introduction and adoption of the Mosaic browser. New internet companies sprung up in massive droves. Investors started to speculate on what the companies were actually worth. This speculation caused a crash that impacted the whole industry. The dot.com crash was a direct result of too much investment, too quickly. Many companies were valued for way more than they were actually worth. This created a culture of over-investment. That investment caused companies to put too much faith into a new industry. There was no guarantee that internet companies would actually do well and continue to do consistently well. But since the internet was so new, no one questioned it. Companies got lots of capital before they could prove how profitable they would be.  Once the “bubble burst,” everyone lost everything. Companies could no longer keep themselves afloat. The bust hit everyone extremely hard. People lost their jobs and livelihoods. A lot of people also lost their interest in the tech industry. There was a much lower level of investment. People thought it was going to be a complete bust forever. Surprisingly, it wasn’t. Many companies began to build themselves up again. Slowly, people put their faith into the internet once again. Internet companies started to grow again. But this time, investors would be more cautious. The VCs would measure and assess their risks before investing into an Internet company. The continued investment allows for the internet to continue to be an ever-growing field. It gave us Amazon, Yahoo, and more. 

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