Do Domainers Accept Bitcoin As Payment? Do They Mine Coins Like They Mine Domains?

Lately I haven’t been blogging much because I’ve been riding the BitCoin wave. Something that I ask myself is if Domainers accept payment for domains in BitCoin or if they mine domain names similar to how bitcoins are mined. As of about a year ago, I got into the bitcoin scene. I purchased a bitcoin and I felt that it was “enough”. However as the price went up and down, I really liked the spikes. One day I made a lot more on my 1BTC investment. The next day I lost. And the cycle keeps going on a day to day basis.

Something I am aware of now is that bitcoin can be a good way to accept payment for a domain name sale. You can choose to keep each bitcoin or cash it out immediately for it’s current worth. The thing that gets a lot of people is hope that each bitcoin can be worth more than what the initial worth is. For example, let’s say I sell a medium to low grade domain name at wholesale worth of $250 USD right now. If I accept a bitcoin as payment (at today’s worth), the domain may not of sold for as much as I had hoped. However, the bitcoin I received as payment may go up or down in value. If the worth of the bitcoin doubles in a little bit of time, then it was a great investment. If the bitcoin loses value, then it probably wasn’t worth the gamble. Or you can hold the bitcoin and hope it goes up in value.

Something else I have been doing a lot is bitcoin mining. Basically it involves buying powerful ASIC bitcoin miners to mine bitcoins. Along with a hefty electric bill, you get paid bitcoins for every block a mining pool finds. So it’s as easy as making an educatued guess as to when you will ROI, what hardware to buy and how much you want to wait / make. This all reminds me of domain warehousing which I have been in the business of for a long time. You can choose to sell the bitcoins or bitcents or keep them and pay the electric bill or cash them in and pay the bill with the cashout. I usually prefer to keep the coins and pay out of pocket for the electric.

This post is to make people aware that you can accept bitcoin as payment for any domain you have for sale. You can easily cash the coin(s) out instantly at the current exchange rate if you want to play it safe. Otherwise, you can hold on to the coins and wait for them to be worth more. There are many websites such as coinbase that allow you to put a purchase now button next to any item / domain you may have for sale. You can even set options to either get an instant exchange rate and get the cash delivered instantly or keep the bitcoin in your account and ride the wave of an up / down slope and pull out when you want to.

As more companies are accepting bitcoin as payment, I see how this is becoming a valuable payment method to our eco system. You can warehouse domains, but their net worth may be worth more if you invite bitcoin as payment to sell domain names. Quick example would be – what if someone purchased bitcoin at a very low price of say $77 USD per coin. Then they find your domain for sale @ $2500 USD. In their mind, they don’t think that they are spending 10 x $250 USD current BTC price. Instead they think, hey, I purchased bitcoin @ $77 USD each, so $10 x $77 = $770 and that is fair for this domain name. So both parties win and are happy.

For anyone looking to accept bitcoin on their sales lander pages or domain portfolio, you can find button information here: https://www.coinbase.com/docs/merchant_tools/payment_buttons You may even find it useful for other payment options. In my opinoin, the more options we present a buyer for payment – the better. It could be that someone who wants to buy something from you may even prefer to pay with bitcoin or crypto currency. So you can be doing all parties a favor by offering alternate options better your chances at securing a sale.

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2 Comments »

 
  • John says:

    Do you mine on your own, or are you part of a mining pool? Also which mining machine(s) do you recommend?

  • admin says:

    Hi John, sorry for the late response. I was part of the mining pools because of the chance of earning vs solo mining. I recommend the Slush pool out of the ones I used. I have tried alot: btcguild, bitminer, eliguis, kano and plenty more. About a year ago Slush was paying the best. I recommend Spondoolies gear . It is no longer profitable nor does Spondoolies manufacture any more hardware for the consumer. Spondoolies is now self mining or cloud mining under contracts for profit.

 

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