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NEW YORK (InsideBitcoins) — Recently Domain Guardians, a domain name company, announced the sale of BTC.com for $1.1 million dollars to GAWMiners — a company that specializes in Bitcoin computer hardware. This transaction marks the high water mark for Bitcoin related domain name sales.
Last month a judge halted the sale of BitCoins.com due to pending litigation against Mt. Gox. That domain name was expected to sell for upwards of $750,000.
But the domain BTC.com pulling in over a million dollars at a time when the cryptocurrency is still well below its year-to-date highs sets the table for a discussion on public interest in Bitcoin as it relates to more than just the market price of the currency itself.
A recent Bloomberg article points out how Bitcoin related domain names are defying the drop in the currency’s actual value. BTC has been hovering slightly below $600, while the 2014 high was $938 on January 5th.
What could be the cause of this?
A speculation proposition
Since the dawn of the Internet, domain names have been a highly-valued commodity.
The highest price ever paid for a domain name was $13 million dollars for sex.com in 2010 by Clover Holdings Limited. By comparison, BTC.com wouldn’t even be ranked in the top 50 of the most expensive domains. Photo.com sold for 1.25 million in 2010 according to domaining.com.
With this much potential to “grow” and with some domain names costing less than lunch, you can understand why so many investors speculate. And recent trends indicate that more domain name investors are choosing Bitcoin related names.
Yahoo! Finance reports, “According to Elliot Silver of DomainInvesting.com, there have been a number of recent Bitcoin-related domain sales at various aftermarket venues and via private sale. Notable reported sales include BTCS.com, which was acquired by Bitcoin Shop Inc. for an undisclosed amount in February, and BitcoinWallet.com, which sold for $250,000, also in February”
Mainstream business opportunities
The International Business Times reports that payment juggernaut Visa is considering integrating Bitcoin in some capacity in the future, an example of the legitimate interest that even traditional companies have in the digital platform.
As these companies become more familiar with the technology, ultimately they will develop ideas of how they can leverage Bitcoin to provide value to their shareholders. That research and development will lead to new products and services which will result in new websites being registered to explain the new products and services.
What’s the future of BTC.com?
According to the GAWMiners website, they offer the “most energy efficient miners in the world.”
In short “miners” are specialized servers that complete the processing that allows the Bitcoin network to operate securely and quickly. People who operate miner equipment earn a small fee in exchange for bolstering the system. This fee creates a demand for entrepreneurs looking to earn bitcoins passively without having to buy, sell, or trade.
Following a such a substantial investment, it’s a good bet it won’t be long before BTC.com is being used to promote GAWMiners products or services in some form or fashion. Currently the site only promises “Something amazing in coming soon.” No doubt a million dollar idea.
Written by Darnell Jackson