I was chatting with a veteran domain investor on Tuesday who has become active in the cryptocurrency space. He posted something crypto-related on social media, and I messaged him to ask what it meant. Long story short, he essentially told me that domain investing was much more boring than cryptocurrency and the returns are better.
I follow the cryptocurrency space, although I am not all that knowledgable about it. I happen to agree with this person on both accounts right now. I have never found domain names all that exciting, although negotiating deals is fun and the money is great. If you look at any of the cryptocurrency charts, he is also right about the returns.
Great domain names still get high prices on the aftermarket, but I think there has been a bit of a lull for the middle of the market. I am not sure how long this has lasted because my portfolio isn’t a good barometer for the industry as a whole, but my guess is that it has been about 18 months give or take. There is more competition at auctions, and there are far fewer good deals as a result. I have also found that people who have owned domain names for a while aren’t really taking lower offers. For instance, someone who turned down $50k during the Chinese bull domain market a couple of years ago most likely isn’t going to take $30k today.
The first half of 2017 was fantastic for me sales-wise, but the last couple of months have been a bit slow. Had I invested in cryptocurrency, I would likely have seen higher returns, but hindsight is 20/20. I have no idea if the market will take off or crash, and I am not sure if anyone knows for certain. I suppose that is the same with any type of investment, including domain names.
I am interested in knowing if domain industry participants are spending more time on cryptocurrency and perhaps what percentage of time has shifted from domain investing to cryptocurrency. I invite you to comment below.