This post therefore is attempt to providing a comprehensive comparison between the Domain Names & Crypto-currencies as virtual investments.
Domain names are like real estate and hence we don’t have a set market price for them . What this means is that a domain can be sold at any price regardless of the price of similar domains . Hence there is no concept of “market price” for domains. . The price is purely dependent on “Buyers need” and “Sellers greed”.
On the other hand cryptocurrencies are digital assets that always have a “Current Market Value” associated with them (anyone can sell Bitcoins for higher or lower than the current market price but it’s a very rare phenomenon ). Most of the transactions that take place in cryptocurrencies are agreed upon at some reference price. It might be of an exchange in the buyer or seller country or any other standard exchanges. Another fact is that we can always sell cryptocurrencies on exchanges at the market price of that time (provided there are enough buyers) .Thus at any given time, cryptocurrencies are traded at a fixed market price.
Holding Cost & Liquidity
Cryptocurrencies on the other hand can be stored in your private wallets or on exchanges. There is no maintenance fee associated with holding them. They can also be further divided into small parts. This provide way better liquidity while dealing with high valued coins such as Bitcoin.
Domain names are registered with accredited registrars who comply with all standard legal procedures of the countries in which they operate. If law enforcement agencies seek the ownership records of the domain from the registrar then registrars would have to comply. This makes Domain names a “State Friendly” investment . Of-course you cannot always get the price at which the domain was purchased or sold unless the parties involved, agree to do so.
Crypto currencies on the other hand are not controlled by any one authority. If only the trading takes place on licensed exchanges, can the data of transactions be available. Other than that all the transactions are anonymous.
This anonymity is good in the sense of privacy or legal obligation but they don not provide a security against fraud.
Suppose a domain name has been stolen from your account then you may seek help of registrar to recover it. You would have to submit some sort of proof that you were not the person to login to the account ( Comparing the IP address location) ..etc. This is where the centralized system of domain names comes to rescue. The registrars can communicate between them and after going through suitable evidence they can help the owner claim the domain.
Conversely the case with cryptocurrencies is that if someone loses his/her password or private key of the wallet and the money is transferred out of it then there is no way in which it can be recovered. No one really knows the owner of a particular currency address (apart from the case where it is an address on a legal exchange). The person who lost money cannot even register complaint with Law enforcement agencies because the crypto network is decentralized and no one can be held accountable.