Is Bitcoin’s meteoric rise going to take money from the domain industry?

Not a week goes by now that at least one domain investor tells me that they’ve started putting money into Bitcoin. While I know plenty of domain investors that have been bullish on Bitcoin for some time now, it’s pretty clear that anyone who wasn’t in, is getting in, and fast.

In some cases these are investors with millions of dollars to invest so they’ll still spend plenty on domains each year, but there are definitely more people who put say $50k – $100k a year into domains that are now putting five figures into Bitcoin.

With Bitcoin’s rise this week I can only see the gravitational force surrounding Bitcoin growing, and with it, more investors jumping in. What I think we’re going to see a lot more this year is people with say a $50k budget for domain names spend half of that (or more) on crypto.

The interesting thing about the market dynamics for Bitcoin now is that if it keeps going up, people will buy because they see it as further validation for the potential of Bitcoin. At the same time, if the price of Bitcoin drops, people will also buy because they’ll see it as an opportunity to get in at a better price. In short, there’s really no scenario where investors are discouraged from investing in Bitcoin at this point.

At the same time, there’s an equal and opposite force at play. Domain investing is becoming more mainstream and every year more and more people join the industry. The question is, will the inflow of money from new investors match the outflow to crypto?

In the end, I think domain investors win the day for two reasons:

  1. The price of premium domain names continues to go up
  2. If more people put money into crypto that would have otherwise gone into domain names, well, that’s less competition for all of us

All that being said, when I sell a domain this year, some of the profits will be going into crypto vs. last year when most of my profits went right back into domains. For me I see now see Bitcoin as an asset class, a true store of value, so putting profits into another vehicle that has good growth potential makes sense to me.

Does that mean I’ll put less money into new domain investments this year? I don’t think so, because of point #1 above. With domains selling for more, I think many of us are going to just end up making more money from our domain sales and have the opportunity to invest more money into both domains and crypto.

A rising tide raises all ships right?

What do you think? Comment and let your voice be heard!

Morgan Linton

Morgan Linton