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discuss Is a booming crypto market good for domain sales?

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The cryptocurrency space has been on fire the last several months. Bitcoin went from under $1000 in March 2017 then up to nearly $5000 in the summer, corrected to under $3000 and at the moment trades over $17,500. Ethereum went from under $20 in March 2017 then up to $400 in June, back down to under $175 and is currently trading over $625. Other cryptocurrencies have seen similar gains.

So as cryptocurrencies are beginning to be viewed as a new asset class, is that good for domains and domain pricing? I am sure I am not the only one on this forum who has experienced the end user only willing to pay $xx for a domain and thinking that anything over low $XXX is usury.

Perhaps now that BTC is trading well into five figures, a $XXXX domain price seems very reasonable by comparison. Thoughts?
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
IMO:

The Crypto market in the short term is having a negative effect on the domaining industry. People who may typically put money into digital investments have moved from domains over to cryptocurrency.

I don't think people's willingness to spend money on the hype of crypto is going to translate over into domains.

So in short - I think there is less money in the domain industry today than there was a few months back.

Will this effect a sale to an enduser who needs your domain? No

Will the crypto market raise the prices of your domains? No (unless they are crypto related)

Will you have less investors with good budgets looking at your domains? Probably.

Is the domain market dead? No - but the crypto market does not help it at all. On an investor level these markets are competing for the same money.

Just my opinion... Everyone else will have their own.
 
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I'm sorry to those who missed the boat on crypto investing. It has changed my life...
 
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What Michael M said.

Less investor money in the industry. Wont effect end users.

For sure bottom feeders have it harder now than 12 months ago.
 
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Bottom feeders sell to end users, and I suspect that the market may be expanding. There certainly seems to be more interest in names related to virtual assets and currency exchanges. Also, I believe that there will be an expansion in sales to small businesses, for political sites, and feeder names. Maybe there will be a contraction in the big ticket sales, but that's not my market, so I wouldn't know. :)
 
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So as cryptocurrencies are beginning to be viewed as a new asset class, is that good for domains and domain pricing? I am sure I am not the only one on this forum who has experienced the end user only willing to pay $xx for a domain and thinking that anything over low $XXX is usury.


IMO, sure, new major money markets should have a positive effect on their affiliated markets.

New markets, new need for related resources including to a reasonable extent online resources that tie-in to the emerging marketplaces.

Crypto related domains, at least those that are sensible and pertinent should coat tail the new money markets as they emerge.

A domain name fast dollar windfall for all who hold and offer crypto related names?

No, of course not.

Crypto markets are worth millions, billions and I recent read a " trillion dollar " potential marketplace article.

Those holding viable domains should find reasonable new marketplaces in which to offer their names and with the high - enormous financial gains at stake, should expect to receive a decent ROI for decent names.
 
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Bottom feeders sell to end users, and I suspect that the market may be expanding. There certainly seems to be more interest in names related to virtual assets and currency exchanges. Also, I believe that there will be an expansion in sales to small businesses, for political sites, and feeder names. Maybe there will be a contraction in the big ticket sales, but that's not my market, so I wouldn't know. :)

Kuffy that you made one 80$ sale from your waste collection of low quality names, does not mean end users want bad domain names. On the contrary there are now so many alternatives to bad names that those local business you dream of selling to have no reason to pay a premium for a bad name, they can just reg one instead. I seem to recall a thread called "I am not doing so well" that made this point exactly.
 
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It definitely takes a huge toll on the domain reseller market. Unless your sitting on a whole portfolio of coin domains your definitely going to feel the slowdown.
 
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Short-term: Drains liquidity and attention from domains
Long-term: Super positive - more attention and recognition of importance of digital assets (thus its price increase in some years or even closer)
 
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Short-term: Drains liquidity and attention from domains
Long-term: Super positive - more attention and recognition of importance of digital assets (thus its price increase in some years or even closer)

Unless people realise that tokenisation is not the optimal way of routing traffic on the blockchain and that makes the crypto bubble burst. Hence proving to sceptics that virtual assets are all scams.

So could go both ways.
 
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I'd say it is good for domain industry in general. As a matter of fact, there are so many newcoming domaining investors, who are looking for easy money but have no idea about what domaining is and how it works, who are just destabilizing the industry and are doomed to failure in aspects of $$$ they "invest". If there is anything else they may now invest in - fine. Brilliant.
 
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I'd say it is good for domain industry in general. As a matter of fact, there are so many newcoming domaining investors, who are looking for easy money but have no idea about what domaining is and how it works, who are just destabilizing the industry and are doomed to failure in aspects of $$$ they "invest". If there is anything else they may now invest in - fine. Brilliant.

Tony for sure its not only domain noobs moving money into Crypto. I have clients that moved both 7 and 6 figures USD from domain names into Crypto. These are prolific flippers that now watch exchanges instead of auctions. So I would tend to disagree with you on that one.

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And if you are the Tony I think you are, you even helped me move their inventory so the money could go elsewhere. A specific steal of two one word names come to mind.
 
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@promo - to the best of my knowlegde, I never dealt with you on any occasion (domains, crypto, etc). Some other Tony must have been involved in the transaction you mentioned.

On a thread subject, I see no contradictions between our opinions. "we the domainers are all investors" is a slogan for endusers. Actually there are ppl who are investing in domains like in art (I remember a case some years ago when somebody was willing to bid millions on expiring monalisa.com for this purpose), others are doing domaining as a day-to-day job and they need to be profitable in any noticeable accounting period (1-3 month) to earn their salary. Both are affected by for example newbie-placed irrational bids on expiring auctions.
 
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End user demand seems to be completely unaffected, and with many domain investors shifting their attention towards crypto instead, reseller prices in auctions are down too. The crypto bubble is making things a lot easier for domainers who buy at reseller prices and target endusers (obviously not a good development for domainers who flip/sell at reseller auctions). I assume things will resume to normality when crypto prices across the board eventually come tumbling down.

The ngtld hype was a great distraction taking funds away from .com, creating good buying opportunities.

The CHIP bubble was a great distraction taking funds away from all non-CHIP .com domain categories, creating good buying opportunities.

The crypto bubble is a great distraction taking funds away from domains, creating good buying opportunities.

Unless a crypto crash hits a number domain investors so hard that prices decrease further post-crash, I think a better time to buy domains won't come around in a short while.
 
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I missed the bitcoin boat too. Most people are selling domain names to buy bitcoin. Basically they spend 500 on bitcoin and hoping it will reach $200,000 USD meaning that they will make about 12x 500=6,000 USD. Much better than buying domain names. So its a buyer's market. Many sellers few buyers.
 
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I think a better time to buy domains won't come around in a short while.
Or if "they" announce a new financial crisis like in 2008. I still remember how many good domains could be acquired @ reasonable prices at that time, both dropping and not. Who knows, what if the current crypto boom is a first step.... This is not to say that I want a new crisis to be announced, not a good scenario from a global point of view, but as a domainer I cannot deny the fact that the year 2008 happened to be a very good time to compose domain portfolios
 
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Lots of domainers reinvesting gains from crypto into domains. Good for domain business.
 
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@promo - to the best of my knowlegde, I never dealt with you on any occasion (domains, crypto, etc). Some other Tony must have been involved in the transaction you mentioned.

On a thread subject, I see no contradictions between our opinions. "we the domainers are all investors" is a slogan for endusers. Actually there are ppl who are investing in domains like in art (I remember a case some years ago when somebody was willing to bid millions on expiring monalisa.com for this purpose), others are doing domaining as a day-to-day job and they need to be profitable in any noticeable accounting period (1-3 month) to earn their salary. Both are affected by for example newbie-placed irrational bids on expiring auctions.

Well the question was if it was good for the industry. I do agree that for some people less competition in domain auctions would mean more competitive acquisition prices. But I doubt that offsets the millions of dollars that is outflowing from the domain investor market to Cryptos.

Also I like that a lot of noobs are buying stuff at auctions. I have been buying from resellers exclusively the last 5-7 years and frankly the added competition has meant more competitive prices at my position in the food chain.
 
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Or if "they" announce a new financial crisis like in 2008. I still remember how many good domains could be acquired @ reasonable prices at that time, both dropping and not. Who knows, what if the current crypto boom is a first step.... This is not to say that I want a new crisis to be announced, not a good sceanario from a global point of view, but as a domainer I cannot deny the fact that the year 2008 happened to be a very good time to compose domain portfolios
While it would present a good period for buying domains, a global recession under current conditions would likely hit end user demand hard too. If you haven't set aside additional funds for a financial crisis prior to it occurring, it might prove challenging to generate enough cash inflow from end-user sales to really take advantage of a downturn in the reseller market. I also assume the bots of large operations like Huge Domains, Name Administration, and the like will have no problem continuing bidding full throttle like they are currently doing; the "floor" prices created by their proxy bids in any auction they participate in would likely be maintained, even in a recession (so I wonder how low prices realistically could go in this eventuality?).
 
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In a different twist those that accept bitcoin as payment for domain names will make money in the domain market. A domain that costs $5,000 may seem high but if they bought bitcoin when prices were low then what may look like $5,000 to you may only have cost them 500 bucks. If the major marketplaces start accepting bitcoin then sales will increase in my opinion.
 
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In a different twist those that accept bitcoin as payment for domain names will make money in the domain market. A domain that costs $5,000 may seem high but if they bought bitcoin when prices were low then what may look like $5,000 to you may only have cost them 500 bucks. If the major marketplaces start accepting bitcoin then sales will increase in my opinion.

Well its still 5K for them. If cryptos were less liquid or hard to cash out or something, then I could see this happening. But as it is it takes a few days to go from crypto to fiat. So it might have been 500 at some point, but nows its 5K for everyone. You dont have to go down a dark alley to transform your BTC to USD.
 
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Well its still 5K for them. If cryptos were less liquid or hard to cash out or something, then I could see this happening. But as it is it takes a few days to go from crypto to fiat. So it might have been 500 at some point, but nows its 5K for everyone. You dont have to go down a dark alley to transform your BTC to USD.
I get that but in reality their total investment is only 500 bucks not $5,000.
 
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Yes.. But that does not make it different from any other cash they might have. It can still buy the same things. I mean they still want a nice car and home. They wont go spending that money on domains just because they got it from Crypto.

And how is that any different from domains.. Most of us get 10x or more on our domain investments.. That does not make the cash any less valuable.
 
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It's much easier spending money from domain profits then it is spending from what I made busting my ass. It may all be money in the end but it's spent much easier when you know you just profited a couple grand from a $10 purchase. That's why lottery winners go broke. Easy come easy go.
 
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The first high tide, on Wall Street, of trading in a new asset class raised all boats in that digital harbor.
The domain world just got a moon. As tides come and go, regulatory break walls are built around volatility and 'beach front' domains become more attractive.

The cryptocurrency space has been on fire the last several months. Bitcoin went from under $1000 in March 2017 then up to nearly $5000 in the summer, corrected to under $3000 and at the moment trades over $17,500. Ethereum went from under $20 in March 2017 then up to $400 in June, back down to under $175 and is currently trading over $625. Other cryptocurrencies have seen similar gains.

So as cryptocurrencies are beginning to be viewed as a new asset class, is that good for domains and domain pricing? I am sure I am not the only one on this forum who has experienced the end user only willing to pay $xx for a domain and thinking that anything over low $XXX is usury.

Perhaps now that BTC is trading well into five figures, a $XXXX domain price seems very reasonable by comparison. Thoughts?
 
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