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The nature of value in Chinese domains - are they business assets or currency?

NameSilo

33S

Established Member
Impact
230
What is the nature of value CHIP domains have - are they valuable because it's a new trend for the Chinese to move their business websites to short and numeric domains (postal codes or phone numbers?) and therefore investors started to grab all possible combinations, or chip domains are like currency, like bitcoin, where a critical mass of people decided it was valuable and the rest followed them.

Or, to approach the question from a different angle: how does their value depend on actual websites using them?

I ask because I'm interested how the recession the world is entering will change value of Chinese domains? If they are purely business assets, then they will fall in value because businesses will try to cut costs, but if they are a 'currency' themselves, independent from government power, they might get a boost.

If I'm completely off base on Chinese domains, please explain why.

Thanks :)
 
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jkm

Established Member
Impact
8
As explained to us by a very important domain investor during NamesCon 2016, the LLLL .com market was specifically created by a group of fund managers in China, in order to leverage a millions-strong fund into intangible assets. It is an artificial market, unrelated to any real need or use for those domains, that are being traded as stocks. Domain investors looking to invest long term in these assets should be aware of the particulars of this artificial bubble.

http://domaingang.com/domain-news/c...olatility-and-short-domains-as-an-investment/

I agree with this quote. Will see what happens then investors will need to cash out ;)
 

Lionel Cohen

Upgraded Member
Impact
124
http://domaingang.com/domain-news/c...olatility-and-short-domains-as-an-investment/

I agree with this quote. Will see what happens then investors will need to cash out ;)
I agree on the fact that their value is not correlated to end users demand, exactly the same way that mosr currencies or stock are traded for the only sake to make a trading profit, most stock buyers for example will never exercise their voting right attached or for USD1 exchanged in the real econony USD100 are on derivated.
 

hugegrowth

DomainMedia.caTop Contributor
Impact
1,048
Difference is you can print more currency or create more Bitcoin. One dollar is the same as the next, one gold ounce is the same as the next. Each domain in unique, and there are a finite number of LL, NN, LLL and so on, with domain extension being another descriptor. Not to say domains are a currency, but there is a finite supply of short quality domains in a world of growing Internet.
 

hugegrowth

DomainMedia.caTop Contributor
Impact
1,048
I wonder who the "very important domain investor" was? Lol
If it was made up I wonder why they care about having no aeiouv?
 
Impact
48
How is this different than the New gTLDs ?
where there is virtually NO End User interest/market and even worse NO reseller Market