Bitcoin Domain Name Frenzy
Despite Bitcoin’s significant drop in value, the young market is still alive and well. Earlier last year, Bitcoin was hovering at around $200 per and peaked in December at over five times that. However, a successful hacking at a Japanese exchange resulted in a theft of a billion dollars worth of bitcoins. With bitcoin valued at a much lower price, entrepreneurs are still entering the market.
What is Bitcoin exactly?
It’s an online currency where each bitcoin is originally data mined by running programs. For avid bitcoin data miners, the computing power necessary to generate a reasonable profit is tremendous. However, when it comes down to it; some got lucky and others not so much.
Bitcoin is capable of buying various services and items and actually has become a legitimate investment. Hence why the Bitcoin domain name frenzy is alive today.
Many entrepreneurs and businessmen are snatching up bitcoin related domain names such as bitcoins.com, bitcoinshop.us, and so on. These easy to search domain names will ideally drive the business that those entrepreneurs decide to pursue. However, in such a young market, the valuations for domain names are skewed. Many domain name sellers are asking for 6 figure prices and the owner of bitcoins.com is seeking $1 million for the rights to the domain name.
The CEO of BitInstant LLC snatched up over a hundred domain names for $5 each and has received thousands of offers for certain domains.
And here is where I extend my question to you, the WSO community
Do you believe that these domains are worth the high price tags the owners are placing on them?
While more entrepreneurs are entering the bitcoin market, will there be enough forward momentum to regenerate lost value since December’s peak?
And finally, do you see Bitcoin having a bright or bleak future?