Download: True Story of the Internet
Bubble
1. Jeff Bezos is the founder of Amazon.com.
2. Pierre Omidyar is the founder of eBay.
3. Moore’s Law (Gordon Moore, founder of Intel) states that the speed and power of an integrated circuit doubles every 18 months.
4. Metcalfe’s Law (Robert Metcalfe, founder of 3COM) says every new node added to the network increases the number of users exponentially.
5. Moore’s Law and Metcalfe’s Law, along with ignorance, rampant enthusiasm, unbridled greed means a fantastic financial bubble is right around the corner.
6. Other breakthrough technologies that created a bubble include:
· Railways
· Telegraph
· Canals
· Automobile
7. Amazon’s strategy “get big fast”, was that profits should be sacrificed temporarily for rapid growth.
8. Public Key Cryptography locks (encrypts) the box (information) with the intended recipient’s pad lock (code).
· Neither the sender nor anyone else can open the box (message).
· Only the intended recipient has the key to open the box (message).
9. Public Key Cryptography is the lynchpin of secure eCommerce.
10. eBay’s early success was due to people buying and selling collectibles.
11. The start of the bubble began with financial analysts predicting huge growth in stock prices for Amazon, eBay and other “.com” companies.
12. The democratization of the stock market gave everyone the ability to buy and sell stocks from the comfort of their own homes.
· The people were called: Day Traders.
13. Venture capitalists were hedging their bets, most of the .coms were fail but one in a group might make it big.
14. Money managers on Wall Street encouraged buyers to purchase .com stock even if they thought these companies would fail.
15. The other boom besides the Internet book was the boom in telecommunications.
16. Fiber optic cables can send 10 billion bits per second or more.
17. Data is directed around the Internet by routers. (Not mentioned in the video.)
18. Black Friday, April 14th, 2000, NASDAQ fell by 25%.
19. Out of the Internet bubble came:
· Fewer but more financially stable Internet companies.
· The Internet infrastructure was built over 5 years instead of 15 years.
· Brick and mortar companies become more serious about the Web.