In my opinion we are because quite frankly, all of the signs are there. Over the past couple of years, numerics have significantly outperformed other domain categories. Demand from Asia played the most important role by far, there’s no question about that.
I’m not going to resort to technical analysis, nor will I bore you with too much information. For the most part, identifying a bubble is not exactly rocket science. All you have to do is take a step back and ask yourself if the situation you’re seeing makes sense.
NNN dot coms did *very* well, fair enough.
I “get” NNN dot coms and understand why.
NNNN dot coms also did *very* well, I can kind of understand this as well but to be honest, am not too excited about these from a brandability perspective. At least not enough to justify their recent performance. While I “get” NNN dot coms, the same thing cannot be said about NNNN dot coms. Again, at least not enough to justify their recent performance.
But nowadays, it seems even NNNNN dot coms are starting to get attention.
The high prices of NNNN dot coms were somewhat of a warning signal but the fact that even five number dot coms are starting to receive attention should make it crystal clear that we’re dealing with a bubble.
Will prices go down?
I don’t know.
Will prices go up?
I don’t know.
You see, identifying a bubble isn’t all that hard but determining what’s going to happen next week or next month isn’t as easy. I didn’t write this post with the intention of telling you to sell your numerics, keep what you have or buy more. The responsibility of making that decision lies exclusively on your shoulders.
Maybe numerics will continue to outperform almost everything else, maybe they won’t.
I’m simply trying to explain that there are more than enough arguments in favor of the fact that we’re dealing with a bubble. Nothing more, nothing less. How you interpret this situation is entirely up to you.