Back in May 2012 when the application period for a new gTLD’s closed, the application fee was $185,000 per new gTLD string.
At that time the value of a Bitcoin was trading at around $5.00.
Instead of applying for a new gTLD string for $185,000 what if the applicant would have bought 37,000 Bitcoins, at $5 each.
How much would have that $185,000 investment be worth today?
Just about $30,000,000.
So why would I tie new gTLD’s and Bitcoin’s together?
Last week while I was in Argentina on a Saturday night at 2am in a nightclub, a domainer friend answered many questions I had about BitCoins and even generousness gave me one with no string attached
At the time on that Saturday night a week ago the value was $447.oo
7 days later and the value is over $800.
So my free Bitcoin’s value almost doubled in a week.
Its so crazy I don’t I think its something you can simply ignore or just write off as a crazy fad without giving it a second look.
BitCoin might be worth $5.00 again in a year or might be worth $100,00o or more.
Interestingly Argentina where the ICANN meeting was held is one of those places in which Bitcoin can really thrive.
Argentina has monetary policy issues, which is allowing an official exchange rate of 6:1 (Pesos to Dollars) where the street rate, or store rate or black or blue market rate is closer to 10:1
Simply put if you use your charge card in a store, restaurant, hotel or bar your credit card company will convert that amount in Peso’s to dollars at 6:1 and bill you in US dollars.
If you go to the same store, restaurant, hotel or Bar with hard US dollars you can therefore get a 20-40% discount.
The reason is that the local Argentina currency continues to go down in value, the government imposes a “bank tax”.
Buenos Aires is so overrun with fraud that counterfeit bills are being distributed out of bank ATM machines.
Yes it happened to several attendee’s at the ICANN conference.
Also its pretty hard to get much out of an ATM in general in Argentina, the most I was able get out at any one time was about $200 US and had to pay a 5% service charge to do even that.
So in the city people are more than happy to take half a US dollar at half the stated rate to have cash in their hands rather than money in the bank.
Like Greece BitCoin is that type of currency which is spendable and not subject to the whim of the government.
By far when it come to technology I’m not the brighten blub but Bitcoin seems to be limited to 21 million technologically (more on this below)
Since Bitcoin is just a mathematical equation its limited by its own math.
Moreover Bitcoin is set up by design to work like a real mine, the more the mine has been mined, the harder it gets to mine new material.
Here is some more information from bitcoin.it
“”New bitcoins are generated by the network through the process of “mining”.
“In a process that is similar to a continuous raffle draw, mining nodes on the network are awarded bitcoins each time they find the solution to a certain mathematical problem (and thereby create a new block). Creating a block is a proof of work with a difficulty that varies with the overall strength of the network. ”
“The reward for solving a block is automatically adjusted so that roughly every four years of operation of the Bitcoin network, half the amount of bitcoins created in the prior 4 years are created.
10,500,000 bitcoins were created in the first 4 (approx.) years from January 2009 to November 2012.”
“Every four years thereafter this amount halves, so it will be 5,250,000 over years 4-8, 2,625,000 over years 8-12, and so on.
Thus the total number of bitcoins in existence will never exceed 21,000,000″”
So there are only 10 million of these guys in existence.
As we know there are 265 million domain names registered in the world.
If only 1 in 20 people smart enough to have registered a domain are smart enough to want to get just 1 Bitcoin, the price could continue to sky rocket.
Especially in places like Argentina.