How Cryptocurrency Prices Impact Domain Names
The world of cryptocurrencies is becoming more and more popular. In 2021, it has already thoroughly entered our lives. However, the peak of cryptocurrency’s popularity is yet to come.
Over the past year, one of the most popular cryptocurrencies, Bitcoin, has been unstable in price. At the beginning of the year, it a sharp jump in its price was seen, but in the spring, the cost of Bitcoin began to fall. This was initially due to a tweet from Elon Musk, who stated that Bitcoin mining was not ecological.
We’ve already written more about Bitcoin here.
Any global event or any other online factor can affect the price of cryptocurrencies. In addition, the cryptocurrency itself can influence the increase in prices for domain names, even in the secondary market where people buy and sell the names.
Today, we’ll try to understand the relationship between the cost of cryptocurrencies and the domain name market and discuss the benefits of this.
The impact of cryptocurrency on domains
The impact of cryptocurrencies on the price growth of domain names is quite simple. As a rule, this happens in one of two possible ways.
1. Purchase of domain names using cryptocurrency
Internet users who invest in the development of cryptocurrencies and cryptography in general also invest in purchasing various domain names. This is known thanks to domain brokers, who report that users often buy domain names using cryptocurrency rather than dollars.
Such buyers risk practically nothing, since they are basically “playing with the house’s money,” and are ready to pay more than other buyers. Buying using just one Bitcoin is actually valued at tens of thousands of dollars, although it was only several hundred a few years ago. Therefore, such a transaction does not seem to the buyer to be something really serious and expensive.
2. Purchase of domain names for business
Another reason why the increase in the exchange rate of cryptocurrencies affects the increase in the cost and sales of domain names is that many companies specializing in various online services, including those related to cryptography, buy domain names for business.
How to benefit from this situation
Now, let’s talk about how an ordinary internet user can benefit from this trend. First, let’s look at some examples.
- Terms of exchange
It is rare to see domain names that contain the letter “x”, because few words in the English language have this letter. Therefore, you might think it is foolish to expect such domains to be sold for a lot of money. However, it is worth remembering that “x” is an abbreviation for “exchange,” and the right domain names ending in “x” are valuable for this reason.
For example, names containing the word “DEX” are now popular. DEX is short for decentralized exchange.
Interestingly, the domain name NFTDEX.com was recently sold for $25,000.
- ETH and other coin names/abbreviations
The most popular domain names are those that have the names of well-known cryptocurrencies in the name.
For example, take the case of Ethereum, or ETH. The domain name “ETH.gg” was sold for $50,000. And the domain name “ETH.co” sold for a whopping $300,000, after having been purchased years ago for just $25.
In addition, you can notice one of the distinguishing features of cryptocurrency companies: more often than not, they use extensions other than “.COM.”
As for Bitcoin, or BTC, everyone remembers that in 2014 BTC.com was sold for $1 million. A little later, the domain name BTCexchange.com it was sold for $55,000. BitcoinPoker.com sold for $65,000 last year.
Non-fungible tokens (NFTs) are now gaining more and more popularity. If you still don’t know what an NFT is, these are unique assets in the blockchain, such as a work of digital art.
You can read more about NFTs here.
Well, now here’s some interesting data. The artist Biple sold a digital collage for a record $69 million at one of the auctions.
In the context of the increased popularity of NFTs, Donuts, the domain name registry, reported a sharp jump in domain registrations including “NFT.” In March alone, about 1,600 domain names containing NFT were registered. Not bad, is it?
Variations of names containing NFT are different: for example, NFT.app was sold for $50,000, BuyNFT.com for $10,589, and NFTDEX.com for $25,000.
- Common/vocabulary words
Please don’t think that companies based on cryptography buy domain names exclusively related to this topic. Of course, there are certainly many such examples, but some still deviate from this tradition and choose names that are completely removed from cryptography.
For example, the well-known cryptocurrency market SushiSwap bought a domain name Sushi.com. The price of the issue and the transaction remains a secret. However, we can assume that this is millions of dollars because the company’s total value as of May 2021 is about $1 billion. Therefore, the company has enough money to spend on domains.
In addition, SushiSwap also bought the domain Pancake.com, which is a direct competitor of the exchange.
How can you invest in crypto domains?
And now, the most interesting part of our conversation, how exactly can you become a part of all this and invest in crypto domains?
In fact, it is very simple. Even if you have not bought any cryptocurrency up to this point, you can still start now and have time to invest in domain names.
The first thing to start with is the Namecheap trading platform. Also, experiment with different combinations that you can register in extensions such as “.COM,” “.IO,” “.CO,” and hundreds of other extensions. You can also purchase domains or other Bitcoin products on Namecheap. Of course, they can be a little more expensive at the initial stage.
Prices for cryptocurrencies vary and change every day. The same situation happens now with the purchase of domain names. However, if you are really interested in this topic and believe in future success, you will most likely win on such investments.
Don’t forget about Crypton – a promising eco-friendly cryptocurrency in 2021, which is the main means of payment of the Utopia P2P ecosystem. Already today, Crypton is available for purchase, exchange, sale, or withdrawal on popular cryptocurrency exchanges.
Read more about the advantages of the ecosystem here.
In addition, Crypton mining is also available directly in the ecosystem with the subsequent exchange, sale or withdrawal of funds through the internal exchange of the Utopia P2P ecosystem. To do this, you only need the internet and a modern computer: no mining farms, complex equipment, or large electricity bills.