Theres been a lot of talk over the last few months about the US economy getting worse due to inflation and a variety of other reasons. If the US economy were to get very bad or even crash, what would happen to the value of domain names?
I guess it will get affected. Domain name value is almost always based on optimism and hope, so ups and down in economy and web business can affect the price to a large extend.
To end users, domain names are part of a total marketing strategy. With a bad economy, marketing expenditures will be reduced so domains will take a hit as well. The good thing is that speculators/investors will be busy buying and may guard against market pressures. Holding onto good names till the economy gets better is wise.
I would feel that it will take a worse hit than the economy, domains are normally a speculation, if the goings are good, speculators can sell for crazy amounts of money, if the economy is doing badly and companies are struggling to survive, I think securing the right domain would be the last thing they will think of. Also those speculators may have to sell low to recoup some of their costs.
Only registered ones. And I fully afgree with you. But in case with new domain names that might be serious problem for sure.
It certainly can affect domain values, but keep in mind that is just the United States. People across the world will need domains, and every day more and more people are starting to come online, or bring their business online.
They will register for new domains, thats for sure, but if recession sets in less businesses will be setup. New domains will still be registered but at a lower pace and the speculative domains may suffer a huge drop in prices IMHO
I can't stand how people believe all the stuff they hear in the news... We are all fine, We are in control of the economy, We have the final say to what happens in the end, dont believe all the pessimist things they say. Seriously, it only makes things look worse than they actually are. Domain names are not going to be affected... not their values at least. Just hold on to them and dont freak out and sell at a low price. its like real estate and stocks... simply put...
Stock market is spinning out of control and so is real estimate, foreclosure rates are at all time high, stock market is breaching 12 000 and you say we are fine? Domain names are secondary products they certainly won't hold up. In a recession only gold and bonds and defensive stocks hold up well.
Yes they are going to be affected. Very few things are resession proof, I see no reason why domain names would be one of them. If anyone wants an economics lessons feel free to contact me and I'll explain more in-depth why a colapse of our econommy would cause domain name prices to fall, but hopefully it is just common sense to most people.
The only reason all of this is happening is because of people's fear levels. If they were educated in the principles of investment and debt control none of this would be happening. New industries are being created and old ones are disappearing, adapting is the key to our survival. But I guess natural selection will determine who the fittest are. It happens everytime there is a recession, just look at history. All im saying is that the domain industry will be affected but only temporarily and there is nothing to fear. Like everything else that is being affected, it will be okay.