F*ck me, you are showing your ignorance right there. You think all the Chinese are clueless? And have never had internet? Huh!!
Excuse me, but the vast majority of domainers are in fact losing money. Even experienced domainers. That's why very few are incorporated in the first place. They are hobbyists.
So they are probably
clueless as well, because they aren't making money. They
think they know what they're doing, but in fact they're not because domaining is more difficult than it sounds. It's obvious that the Chinese are buying everything that moves, even .cm domains by the thousands. You don't have to be a genius to see that money is being burned ablaze.
The Chinese who are currently buying up names are probably less
knowledgeable and experienced than the average NPer who is nonetheless losing money ? You see what I mean ?
By the way how many Chinese have become domainers lately ? I can't believe they all woke up at the same time and saw the light... Probably there are not so many players but they are buying in
large amounts, hence the impression that there is a
big move taking place.
Wow, you have a lot to learn..........most of the richest people in the world are now from China.
Those who have money, can afford to burn money and gamble. Doesn't mean you must follow their example, because they may not succeed. In fact, failure is the norm, and success is the exception in domaining.
I know of a guy who burned 200K on a .mobi a few years ago. He must be smarter than I, because he got rich, yet I never bought one single .mobi.
Just because they are Chinese doesn't change the fact that the
market rules are still in play and they are quite simple.
As long as speculators can flip to one another, everybody is happy. When the prices are too high, speculators stop buying - don't forget they cannot keep buying, they have inventory to sell too. When the reseller market is depressed, you need end users to achieve a high markup on your sales.
Now who is going to absorb all that supply of domain names ?
The pool of end users just doesn't not grow at the same pace. The outcome is predictable:
- paying for renewal = more money down the drain
- or: massive drops
- the other domains in the same categories become worthless again as a whole or illiquid - anyway the correction will be huge
But the bubble will normally burst well before that.
Buying is easy, burning money is easy, everybody can do it.
You know what they say: follow the money. People are just following the herd. It's not the same thing. It's more about mimicking others, than insight.
