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OTCbid - Would Domains go up in value faster than Bitcoin?




Over years, we have seen many big headlines on domain name sales that single word Premium Domains have been sold for multi-million dollars. For example, the highest domain name sale was Cars.com. It was sold for $872,320,000 in 2017. Insurance.com was sold for $35.6 million, VacationRentals.com $35 million and PrivateJet.com $30 million. Early February this year 2019, Voice.com was sold for $30 million. Fashion.com is on market, probably for auction.


Would domains go up in value faster than Bitcoin crypto currency? According to Domain King, Rick Schwartz believed that, "Domains would go up in value faster than any other commodity ever known to man". - Domain King


We do some research and compare the Domains and Bitcoin value. It will be interesting to see as to whether Domains are going up in value faster than Bitcoin.


The volatility of Bitcoin price has captured the world attentions as Bitcoin price had skyrocketed to the peak of $19636.8 in Dec 18, 2017. Since then, it's dropping off to the lowest $3448 in 30th Jan 2019, and up again to the high of $12656 in 26th June 2019. Now, it's moving sideways slowly tapering off towards downtrend to $8785 at time of writing this post 13th Nov 2019.



COMPARE BITCOIN VS DOMAIN PRICES:


1. BITCOIN:

We look at the bitcoin price movement for the last 10 years from Oct 11, 2009 to Oct 10, 2019, including the peak in Dec 18, 2017, a period of time that saw the price of bitcoin climb from $0.0009941 in Oct 11, 2009 to the highest world record price of USD $19636.8 based on the CoinMarketCap Price Index and information provided from Saifedean Ammous.


A. ) Invest In 2009, sold in 2019 ( 10 years )

"Ten years ago today, 5,050 btc were sold for $5.02 in the first market transaction for bitcoin. Today, they'd be worth $42,171,792.50. A rise of 838,078,685%." - Saifedean Ammous

Oct 10, 2019, 1 BTC = $8350.85

Oct 11, 2009, 1 BTC = $0.0009941

Year Invest = 10 years

ROI = 838,078,685 / 10 = 83,807,868.5 % increase per year


B. ) Invest In 2009, sold in 2017 ( 8 years )

Dec 18, 2017, 1 BTC = $19636.8

Oct 11, 2009, 1 BTC = $0.000994

Year Invest = 7.167 years

Net profit = $19636.8 - $0.000994 = $19636.7990

ROI = Net Profit / Total Investment X 100

ROI = 19636.7990/ $0.000994 X 100 = 1,975,533,099%

ROI = 1,975,533,099 / 7.167 = 275,642,961 % increase per year


2. WORLD'S MOST EXPENSIVE DOMAIN NAME:

The most expensive domain name in the world Cars.com sold for $872,320,000

Cars.com - Domain investor George Kirikos

$872,320,000 - registered on 1998 - sold in 2017 ( 19 years)

Year 1998 - purchase + renewal fees for Cars.com = $500 ( estimate)

Year 2017 - sold Cars.com = $872,320,000


Net profit: $872,320,000 - $500 = $872,319,500

ROI % : $872,319,500 / $500 x 100 = 174,463,900% increase in 19 years

174,463,900% / 19 yr = 9,182,311 % increase value per year

ROI = 9,182,311 % increase per year


FINDINGS:

1. Invest Bitcoin In 2009, sold in 2019 ( 10 years ) : ROI = 838,078,685 in 10 years

2. Invest Bitcoin In 2009, sold in 2017 ( 8 years ) : ROI = 1,975,533,099 in 8 years

3. Invest Cars.com In 1998, sold in 2017 ( 19 years ) ROI : 174,463,900% in 19 years


CONCLUSION:

Bitcoin goes up in value faster than Domain names.

While domain name Cars.com can achieve significant ROI 174,463,900% in 19 years, Bitcoin investment has a higher / faster return ROI 1,975,533,099% in just 8 years. (applicable only to BTC investors before or during 2009.)




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