Some thoughts about the state of crypto markets and the impact on domain name values.
The price of bitcoin fell below $30,000 this morning, making it down 55% since its high in April. Other cryptocurrencies are faring even worse. Ether is down 60% from its all-time high. Of course, both of these cryptocurrencies are still up from where they started the year.
This is all to say that the current market for cryptocurrencies is highly erratic. Cryptocurrencies are not currently a store of value. They should not be used for corporate treasury. They are expensive to transact in and often built on inefficient systems. And people like Elon Musk can move the market on a whim.
Elon Musk is just one of the many hype men for crypto. It’s funny how crypto (and now NFT) works. People buy in, and then each owner becomes a hype man, pushing it higher.
I’ve been thinking about this in the context of the domain name market. Go back and listen to my podcast with Amanda Waltz and the end of my podcast with Andrew Rosener when we discuss the impact of crypto values on domain names.
In a nutshell, a deflating asset bubble in crypto probably won’t be good for domain name values.
There are some other parallels. People who have bought into .com are hype men (and women) for .com. The difference, in my mind, is that there truly is a difference between domain extensions in terms of value and use. Is bitcoin really more usable than Ether? It’s probably the opposite.
On a final note, kudos to my colleagues who made a lot of money selling apes lately, even while they’re priced in a falling currency. But I long for the day when my twitter stream wasn’t filled with pictures of apes.
They will say to buy the dips .. Just as some are losing money ,some have made money pumping and hyping bitcoin. Elon and Saylor have brainwashed people and most would cry their eyes out .
As for .Com, I would invest more as I never got into domain to rely on the crypto .Their are different niches to focus on rather than depend solely on crypto to sell your names . Health and education, entertainment and all that. Just don’t buy a domain and rely on crypto.
As for the ape ,all I can say is those who got in first will always create a hype and then the next entrance buys and follows and hype. Yes you will make money and also tire your money down.
A word is enough for the wise .
SS Minnow of the Bored Yacht Ape Club says
First one to call everybody else “sheeple” wins a prize.
Only a few months ago, anyone questioning the greatness of BTC as an investment opportunity for the non-professional investors was rebuked as ‘backward, luddites, or old-fashioned’.
Even those like Dr. Michael Burry were shouted out the room. Amazing how a 90-day time frame can reverse things.
How long before BTC drops below $20K? Week? Month?
Michael Anthony Castello says
“People who have bought into .com are hype men (and women) for .com.”
Are we still a transient business? The answer is —no. Then why are we still making statements like this?
The global internet of commerce is basically built on one extension- .com. Arrogant? No, it’s a fact.
The biggest and wealthiest companies and people on the planet made their money and still control the reins of their power using .com
Google, Amazon, Apple, ATT, Twitter and every other Fortune 500 company is built on internet access through their “primary” extension in .com
They wouldn’t be who they are without it. That isn’t hype, that is a reality. Unlike crypto, these billionaires get to spend their money through the world banking system. Everything else is legal ponzi scheme. Why don’t the wealthiest crypto earners buy GM or The New York Times? They can’t. cash. out.
Would expect a general slowdown.
The most effected extension though would be .IO because almost all the big sales are crypto companies. Prices may drop 50%+ in that extension.
Bitcoin was 9k this time last year. I sell as many domains as I can for Bitcoin. Bitcoin will eat everything. Taproot brings in privacy and soon smart contracts, all on Bitcoin the most secure network in the World. Lightning Network speed and low fees convinced El Salvador to go all in. Bitcoin like good domains are a once in a life opportunity. All brokers should pay out in BTC imo.Still very early for BTC.