The Dot-com bubble of the late 1990s and early 2000s was a period of excessive speculation and overvaluation of internet-related companies, leading to a sharp rise and subsequent collapse of stock prices. 

The term "dot-com" refers to the widespread use of ".com" in the names of many internet-based businesses. It was characterized by a rapid rise in U.S. technology stock equity valuations fueled by investments in Internet-based companies. 

The bubble burst between 2001 and 2002, leading to a significant market crash. The origins of the bubble can be traced to the widespread adoption of the World Wide Web, which led to the rapid growth of Internet and tech-based start-up companies.

The causes of the dot-com bubble of 2000 can be attributed to several factors, including:

• Widespread adoption of the World Wide Web: The period of market growth coincided with the widespread adoption of the World Wide Web, leading to the rapid growth of Internet and tech-based start-up companies.

• Abundance of venture capital: There was a dispensation of available venture capital, which fueled the rapid growth of valuations in new internet-based companies.

• A rapid rise in technology stock valuations: Investments in the NASDAQ composite stock market index rose 800% between 1995 and its peak in March 2000, leading to a significant overvaluation of technology stocks.

• Speculation and investor hype: The bubble was fueled by speculation, investor hype, and overvaluation of technology stocks, leading to a stock market bubble.

• Media frenzy: The media played a significant role in fueling the dot-com bubble through hype and speculation surrounding internet-based companies.

• Fear of missing out: Investors were driven by a fear of missing out on the potential profitability of technology companies, leading to speculative investing.

• Overconfidence in technology company profitability: There was an overconfidence in the profitability of technology companies, leading to an unsustainable market bubble.

The bursting of the dot-com bubble in 2000 led to a significant market crash, resulting in the loss of trillions of dollars in wealth and the subsequent economic recession. The dot-com bubble bursting had several consequences, including:

• ​​​​​​​​​​​​​​Recession: The bursting of the bubble led to a recession, as the stock market experienced a significant decline.

• Increased propensity to invest: The bubble led to an increase in the propensity to invest, as investors were eager to capitalize on the potential growth of internet and tech-based start-up companies.

• Bankruptcies: Many internet and tech companies went bankrupt or faced severe financial difficulties after the bubble burst, leading to massive layoffs in the technology sector.

• Capital spending: The bursting of the bubble also led to an increase in capital spending, as companies tried to adapt to the changing market conditions.

• Media frenzy: The bubble was fueled by media hype and speculation, which contributed to the rapid growth of internet and tech-based start-up companies.

• Overvaluation: Many tech and internet companies were highly overvalued due to high multipliers used on their valuations, resulting in unrealistic values that were too optimistic.

• Loss of wealth: Trillions of dollars in wealth were lost almost overnight, as the value of equity markets plummeted.

• Economic, social, and political repercussions: The aftermath of the dot-com bubble had far-reaching economic, social, and political repercussions that are still felt today.

​​​​​​​The events of the dot-com bubble served as a cautionary tale about the dangers of speculative investing and the importance of carefully evaluating the fundamentals of companies, even in rapidly growing sectors.