Categorized | Domaining Tips

Domains and Bitcoin Are *Not* Similar

Posted on 30 September 2015 by Andrei

Due to the fact that both of them are online assets, a lot of people make the huge mistake of assuming they’re pretty much the same thing. Nothing could be further from the truth, they are actually fundamentally different and today, I will try to explain why.

Domain names are assets which thrive under periods of euphoria. If stock markets are high and generally speaking, if investors are euphoric, domain names tend to do well. Consequently, domains perform poorly whenever the economy goes through a crisis or whenever something happens that dampens the overall euphoria.

Bitcoin, from this perspective, is on the exact opposite end of the spectrum. They thrive whenever there is uncertainty, whenever something bad and unexpected happens to the economy. Think about the last time bitcoin values went up a lot, when they even exceeded $1000 a piece. This happened back when the deposits of people in Cyprus ended up being at risk, with banks closing down and all that “fun” stuff. In other words, bitcoin reacted in a positive manner to an event which triggered uncertainty. Unlike the Greek situation which unfolded not so long ago (bank holidays and things like that), about which everyone talks frequently (let’s face it, few people in the world *don’t* know about Greece, the same thing could not be said about Cyprus), what happened in Cyprus came pretty much unexpected as far as the general public is concerned. Bitcoin, as can be seen, thrives under periods of uncertainty.

As can be seen, bitcoin and domain names actually are so different that they end up complementing each other nicely.

It’s not that one of them is desirable and the other is not.

Each asset is what it is.

Don’t make the mistake of lumping them together just because they’re both digital assets, as so many people do 🙂

2 Comments For This Post

  1. Steve Says:

    Been watching btc for a couple years. Considering buying some as unstable times appear to be the norm from here on in.

  2. Steve Says:

    When the power goes out they both won’t be worth much. Food shelter and ammo will be the new currency if it is a prolonged outage. Look what happened in Cabo San Lucas after one day. 😉