-
Notifications
You must be signed in to change notification settings - Fork 1
/
dot_com.html
76 lines (69 loc) · 6.25 KB
/
dot_com.html
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
<!DOCTYPE html>
<html lang="en">
<head>
<title>Bootstrap Card</title>
<meta charset="utf-8">
<meta name="viewport" content="width=device-width, initial-scale=1">
<link rel="stylesheet" href="https://maxcdn.bootstrapcdn.com/bootstrap/4.5.2/css/bootstrap.min.css">
<script src="https://ajax.googleapis.com/ajax/libs/jquery/3.5.1/jquery.min.js"></script>
<script src="https://cdnjs.cloudflare.com/ajax/libs/popper.js/1.16.0/umd/popper.min.js"></script>
<script src="https://maxcdn.bootstrapcdn.com/bootstrap/4.5.2/js/bootstrap.min.js"></script>
</head>
<body>
<div class="container">
<h2>Dot Com Bubble</h2>
<p><strong>The dot-com bubble was stock market bubble caused by excessive speculation in Internet related companies as a part of the mass adaption and usage of the Internet.</strong> </p>
<p>by William Herman</p>
<nav class="navbar navbar-expand-lg navbar-dark bg-dark">
<button class="navbar-toggler" type="button" data-toggle="collapse" data-target="#navbarNavDropdown" aria-controls="navbarNavDropdown" aria-expanded="false" aria-label="Toggle navigation">
<span class="navbar-toggler-icon"></span>
</button>
<div class="collapse navbar-collapse" id="navbarNavDropdown">
<ul class="navbar-nav">
<li class="nav-item active">
<a class="nav-link" href="index.html">Home <span class="sr-only">(current)</span></a>
</li>
<li class="nav-item dropdown">
<a class="nav-link dropdown-toggle" href="#" id="navbarDropdownMenuLink" role="button" data-toggle="dropdown" aria-haspopup="true" aria-expanded="false">
Pieces of History
</a>
<div class="dropdown-menu" aria-labelledby="navbarDropdownMenuLink">
<a class="dropdown-item" href="about.html">About</a>
<a class="dropdown-item" href="browserwars.html">Browser Wars</a>
<a class="dropdown-item" href="dot_com.html">Dot Com Bubble</a>
<a class="dropdown-item" href="invention.html">Invention of the Internet</a>
<a class="dropdown-item" href="people.html">People</a>
<a class="dropdown-item" href="search.html">Search</a>
<a class="dropdown-item" href="team.html">Team</a>
<a class="dropdown-item" href="timeLine.html">Historic Timeline</a>
</li>
</ul>
</div>
</nav>
<p>
In 1995, Jeff Bezos launched Amazon and a man named Pierre Omidyar has an idea for an auction site where the small seller can compete with a big seller. Amazon and Ebay had something that no company had done before and that is make their product about the individual user’s needs, something unforeseen in the industrial age where products were mass produced from the same mold. Both businesses had a vision of using the web as a place of business rather than a place to play. Throughout September 1995, Pierre built and designed Ebay, which started as an auction site for cliche novelty things. Jeff Bezos saw Amazon as the world’s bookstore and the future of selling books. Both entrepreneur’s businesses were immediately successful.
</p>
<p>
Bezos had a phrase that could define the Dot Com Bubble: Get Big Fast. Metcalfe's Law states that 2 users is 1 connection, 3 users have 3 possible connections, 10 users have 45 possible connections and 100 users have 5,000 possible connections. The more people that use the Internet, the more content that would become available, more uses of it will sprout, and the momentum of the Internet will grow vastly. The internet reached 50 million users in four years as 50 million people with televisions took fifteen years to reach.
</p>
<img src=".\images\getBig.jpg" alt="getbig" width="300"height="300">
<p>
The key behind Ebay’s and Amazon’s success was the invention of public key cryptology by Whitfield Diffie and a group of mathematicians. This allowed messages (such as payments) to be sent safely, by sending the access to the message in a separate message so the receiver would be able to access the encrypted message, but a hacker intercepting the message with the payment would not be able to.
</p>
<p>
Henry Blodget is a former Wall Street analyst who was used as a scapegoat for the Dot Com Bubble popping. He knew that these companies with so much hype had poor financials but the pressure from above pushed him to positively spin these companies. He was astonished by the rapid growth of Amazon and Ebay and bought into the hype, despite not understanding the technology. Blodget and Wall Street saw the amount of money these companies were making and the frenzy that happened as a result proves that.
</p>
<p>
The emergence of the day trader is a result of Ebay and Amazon becoming so big so fast. Never before had people so actively bought stocks in the day, then sold in the afternoon, people rushed to trade these companies’ shares. Most of their information came from CNBC and chat rooms, but the truth is that some of the startups daytraders would invest in would be dumping their money into creating a website but had no sales to back it up.
</p>
<img src=".\images\daytrade.png" alt="daytrade" width="300"height="300">
<p>
At this point, the hedge funds had started to make their bets. Pressure was on Wall Street to trade these companies regardless of their fiscal health. As such with any new invention or industry, mania cultivates as Amazon’s and Ebay’s evaluations boomed. Many people had dropped out of school to try and create the next Amazon or Ebay in a garage within Silicon Valley.
</p>
<p>
By 1999, these internet start ups with tons of funding and limited sales started to flounder. Their lack of revenue was starting to show and the dot com bubble had popped. On April 14th, 1999, the Nasdaq fell 350 points, almost 9%. This was the beginning of a 25% plunge. Many innovations have had severely devastating crashes such as telegraphs, railroads, and the model T, none resulting in a loss of as many trillion dollars as the dot com bubble bursting.
</p>
</div>
</div>
</body>
</html>