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.