Dot-com Bubble

Real World Example

The dot-com bubble was important because it showed how quickly people could become excited about new technology, leading to risky investments. Many believed the internet would change everything overnight, causing stock prices to soar without solid business foundations. When the bubble burst in the early 2000s, it led to massive financial losses and highlighted the dangers of speculation. Today, it reminds us to be cautious about investing in rapidly growing tech markets, as seen with cryptocurrencies and tech startups. This affects our lives by teaching us to research and question the hype, ensuring we make informed decisions about where we spend or invest our money.