At the beginning of the year, I shared three reasons why I wouldn’t be inclined to sell a domain name for Bitcoin. At the time of the article, a single Bitcoin was worth about $590 at Coinbase. Today, the value of a Bitcoin is approximately $317 on Coinbase.
The title of an article on BloombergView.com last week, “2014’s Worst Currency Was…Bitcoin,” says enough about why it could have been bad to sell a domain name for Bitcoin in the last year: “The digital currency peaked at a value of $1,130 just over a year ago. Its plunge of more than 56 percent in 2014 makes it the world’s worst performing currency this year, according to Bloomberg, which tracks 175 foreign-exchange values,” wrote Mark Gilbert, author of the Bloomberg View article.
In my article about why I wouldn’t sell a domain for Bitcoin, I shared three reasons for my hesitation:
- Large swings in valuation
- Lack of a paper trail and trackability
- I don’t understand it
If I had sold a domain name for Bitcoin back in February, the value of the sale would be far less today. For the ease of illustrating the plunge, had I sold a domain name for around $6,000 in February, that sale would be worth less than $3,500 today. Had I sold it when Bitcoin was worth over $1,000, that loss would be even greater today. Perhaps I would have cashed out the Bitcoin at the time of the sale, but had I felt strongly about the value of Bitcoin, I may not have exchanged it and would have a paper loss right now.
Hindsight is 20/20, so it’s easy for me to say this today. I am also sure there people who bought and sold domain names before the huge rise in valuation who made even more money as a result of selling a domain name for Bitcoin. Looking at it today after initially thinking about earlier this year, I have to say that I am glad I have not sold a domain name for Bitcoin. That’s not to say that things won’t change in the future though.
Have you sold a domain name for Bitcoin before? If you did, how did you make out with the transaction? Did you exchange the Bitcoin right away or did you hang on to them? As always, your thoughts are invited.