What I Learned in Domaining For Crypto

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Already 25 years ago, there were digital assets in existence, namely internet domains. In this video I explain what I learned from speculation in domains that can be of use to speculation in crypto assets.

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Buy the book "Ready, Set, Go!" that I have co-authored with Brian Tracy:
E-Book: https://www.amazon.com/Ready-Set-Special-Entrepreneurs-Professionals-ebook/dp/B078WZXJDW/
Hardcover: https://www.amazon.com/Ready-Set-Go-Nick-Nanton/dp/0999171402/

Get free chapter of my upcoming book about billionaire thinking: http://TheBillionDollarSecret.com

VIDEO TRANSCRIPTION

Hi! Today from London. Today I will tell you what I learned in domaining for crypto. See you in the next part.

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What I learned in domaining for crypto.

Those of you who don't know what domaining is. Domaining is investing or speculating with Internet domains.

With Internet addresses. As you know I am a pioneer in e-commerce in Internet. I've developed the first online shop for bikes in the german-speaking market

And I was also an early investor in Internet domains / Internet addresses.

In the end of the last century I started investing in these first digital assets.

They were - as far as I know - the first digital assets. And there are certain surprising parallels between investing in domains and investing in crypto

Or speculating with domains and speculating with cryptocurrencies.

And I think we can learn something... maybe we can learn a lot from the developement of the domain market

And translate it on the developement of the crypto market and see the processes / the cycles that took place on these markets.

And maybe we can also predict how the crypto market will develop when we look at the domain market.

So, what are the similarities between domains and cryptocurrencies?

First of all - this is apparently a digital asset and non-material asset. In contrast to for example precious metals like gold, silver or even stocks...

Stocks are shares in company. So, as the name says it's a share in a company. In something tangible.

It's something physical. Companies usually have physical assets - real estates, some offices, they do something. So, this is something tangible.

And digital assets don't have any tangibility to it. So, it's the name.

And the other aspect of being digital is that you can tranfer such an asset easily wordwide. You can transfer it within seconds or minutes

A domain name from one country to another side of the world. And this is the same with any cryptocurrency.

You can move a cryptocurrency globally or transfer it from a person on one side of the world to the person on another side of the world with no problems

There are no barriers to that. Other similarities are something like scarcity, like a limitation

At least with some cryptocurrencies there is a limited amount of that cryptocurrency, for example with Bitcoin - you have 21 million only

And the same is with domains. In the sense that there are no 2 equal domains in the world.

Every domain is singular, it's limited in that sense. So, if you have for example a domain house.com - this is unique name, this is just one in the world

Another similarity is that both the domains and cryptocurrencies are objects of speculation. So, there is wild and intense speculation on these assets

And I've been speculating for over 20 years in the domain market and I think we can transfer some of experiences to the crypto market.

But there are some differences between domaining and crypto. What are the differences?

The first and foremost difference is as I said before - domains are really unique.

So, the same name never comes twice. You can a Bitcoin and nother Bitcoin and they are interchangeable. They are fungible.

But with domains ... every domain is unique. If you have domain, let's say realestate.com, nobody else can have and use this domain

Only you have this domain. But you can have a Bitcoin and somebody else have a Bitconi.

So, this is what we call actually in crypto fungibility or non-fungibility. The domains are non-fungible

It's similar to non-fungible tokens in crypto that are non-interchangeable.

Another big difference between domains and crypto is the following - you need to pay annual feesfor renewal of domains.

So, it costs you something to hold domains. It's similar to real estates, that you have also cost to sustain the real estate, maybe tax or repair costs

Stuff like that... But in crypto it doesn't cost you anything to hold crypto.

Actually in some cryptocurrencies you earn money when you hold them. So, you get interest, you get paid interest if you hold some cryptocurrencies

So, this is a major difference. But what both markets have in common for a long time was a long period of speculation wtth the scarcity mindset

What does it mean? Let's say with the domains you hold a domain and you speculate that somebody else wants or needs that domain

And then you can sell the domain to this person. Because of the uniqueness of the domains you somehow occupy the asset

And hope this asset will be needed by somebody else and that somebody will pay you a higher price.

So, this is speculation and this is the scarcity mindset. The scarcity mindset was of course possible only because there were, let's say, less top domains

That people that needed these top domains because we had only handful of global domains that were mainly .com domains, but also .net

And later .info, .org and .edu but these were of limited use.

So, if you wanted to do something globally in real estate you actually had only maybe these 2 domains

If you wanted to have so-called category-killer-domain. Then you had realestate.com and realestate.net (maybe)

.info - maybe less interesting. But generally there are much more people who want to do realestate globally that these 3 options.

And it was the same with every conutry. Every country has its own so-called top level domain, for example US has .us

But US uses usually .com anyway. For example, Germany has .de and later European Union got .eu

So, in that country if you are active on a local market, you also have very limited choice of domains

And there were more people who wanted these domains from the number of domains available from the best keyword, so to say

And that's why speculation was possible, or the scarcity mentality prevailing was possible.But what happened then?

At some point the central/global organization who organizes and manages the central domain registries came up with the idea to just open the market

For global top level domains. And suddenly new top level domains started to pop up, like for example .house

So, you could register a domain london.house or world.house or my.house and other domains like .global or .realestate, .realty, and so on, and so on...

And suddenly hundreds and later thousands of new global generic domains were available like .money, .house, .realty and so on, and so on...

And in each of these registries / top level domains - of course, unlimited number of domains could be registered and speculated on, and so on...

And what happens in a market when suddenly supply skyrockets? Times 10, times 100?

It means the prizes go down and speculation is eliminated. Practically impossible.

And what happened in the domaining market was that suddenly the after market for almost every extension, almost every top level domain cease to exist

Only a handful of top level domains were tradeable because there were so many options available that people didn't want to buy domains on the aftermarket

From previous owners. They preferred to register a new domain from global registry that suited their needs.

And the prizes almost endlessly fell down - almost to zero.

And there was only one registry who maintained the price level, who somehow sustained in that market / situation. It was the best registry

The best, so to say... the most precious extension, namely the .com extension

So, the first global extension that existed and that had the most domains registered under this extension and was adopted by most people

This registry, this extension - .com domains - they prevailed and they kept the value; maybe they even grew in value.

Because people realized there are so many options but if you want to be the number one in your industry, you need to have .com

I mean if you want to be acknowledged as the number one, if you want to have reputation as number one, then you need .com

And if we translate this into the crypto market, it is very similar - we had for a long time a speculation based on the scarcity mindset

Meaning there are only 21 million Bitcoin and there were only several other cryptocurrencies that were, so to say, tradeable

And each of these currencies had limited supply. For example, Bitcoin had 21 million

Other forks of Bitcoin had either 21 or 84 million coins but more or less all of these currencies had limited supply.

So, people were speculating with the scarcity mindset thinking that there is limited choice of what other speculators that would come later can buy

And that's why the prizes will rise. So, this is a typical scarcity mindest, a limited choice. Speculating with the limited choice.

But what happened then is the same what happened in the domaining market. Some people came with the abundance mindset

And created hundreds and thousand of new cryptocurrencies and suddenly the supply for the cryptocurrencies exploded

And people had a lot of options, a lot of choices to buy cryptocurrencies. What was the consequence of that?

The consequence was that the prizes for cryptocurrencies in most cases went almost to zero. Decreased by 90-95%

And maybe for many cryptocurrencies they will go more or less to zero. But the main cryptocurrency, the Bitcoin, the first one, the first global

And where the most value is stored, the cryptocurrency with the highest adoption, this cryptocurrency was the one that maintained the most value

And that probably as we saw in the domain market, will keep that value for long period of time.

So, this is exactly what we can learn from domaining to crypto. This paradigm change from the mindset of scarcity to the mindset of abundance

And what were the results of this paradigm change, how the market behaves and which assets kept the value and which lost almost all of the value

So, I hope you liked this video, I hope I could help you a little bit, give a new perspective, a new way of thinking about the crypto market.

If you liked this video, give me a thumb up, if not, of course thumb down, subscribe, if you haven't

Share this video with your loved ones, friends. One day they will thank you for that. I talk here a lot abobut cryptocurrencies.

I talk also about entrepreneurship on the highest level. I talk about how the best entrepreneurs in the world think and act

How the self made billionaires think and act. If you like this video, I am sure you will like my other videos - I invite you to watch them

I wish you a fantastic day today, let's do something extraordinary today!

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