Tuesday 13 October 2015

Chinese Premium Domain Name Trend, A New Done for Domain Name Industry.


No doubt about the facts that the ongoing talk of the town in the domain industry is the Chinese Premium Domain Name Trend and it looks like it is a new done for Domain Name Industry.

It  all began in the early 60s to late 70s, when there were only two heavy computers connected together with cable as a means of communication from one user to the other user sitting in front of each of the two computer systems. That was the genesis of email sending on internet; it was done via electronic cords connected from one system to the other like a Child's play.  After that, they realized the need for computer engineers and programmers to find a more sophisticated and higher technology means that could enable them send emails and files to other next or far computers that were not in their vicinity without any cable connections. 

The first time ever was in 1969, a network of more computers without any cord were connected by the US Department of Defense's Advanced Research Projects Agency (ARPA) was contracted to handle the project in which they were able to send and received emails from more and far computers; though, the systems were made to transfer information via IP (Internet Protocol) and not via readable email address like what we recently recognized as email via domain name.

Shortly after that in late 1969, sending of emails on domain name and other files were been sent on the ARPAnet network of 62 computers that were connected and.

Finally in early 80’s, another advanced protocol was proposed and led; a team of two Americans Paul V. Mockapetris a computer scientists and another internet pioneer Jon Postel, both of them successfully  breakthrough from ARPANET initiative, when they made a more sophisticated system, in which Domain Name System (DNS) was invented; a type of protocol that enable sending of emails via domain names and makes it easy for everyone to recognize the sender of every message through domain names, rather than the IP address that were used in the previous protocol. And up till today, the system of sending emails through domain names remains valid and highly accepted till today.

 Domain Name's New Done:

 Meanwhile in the 20th century, to be precised from year 2013, the ICANN began rolling out more new domain name extensions for internet users, to provide more rooms for startups to access internet and also for them to bring their various businesses online; as it was observed that there were shortages of generic domain names in the market for thousands of these startups. While that is still in progress, another serious and trendy spikes suddenly initiated by the Chinese domain name investors, the momentum that is making things looks different, and no one seem to know when the trend could end, as it is not visible to anyone.

However, with the looks on the ongoing trend and based on many facts as stated below; it seems the trend is going to be a continuous one. However, the following backgrounds are my major reasons behind my conclusion and in addition to the principle of demand and supply  which is also accounting for the ongoing trend:

Here Are The Impulses Behind the Chinese Premium Domains Trend:

1. Their population factor; Chinese population is one seventh of the entire world population and
2. Their level of internet users are high and playing the vital role in the ongoing drive in their  chosen markets, including domain name investment, means a lot to the other world markets.

The World Population as at October 10, 2015: World Populations:7,372,969,317

Chinese Population: 1,404,354,046  (21.97% of the entire world)

World Internet Users:
The World:  2014 = 2,925,349,355 and i
n 2015 to date= 3,223,031,400,

The Chinese Internet users: in 2014 = 641,601,070 and that is 25.55% of the total world Internet usages.

  3. There is another strong factor as published on news week of on the 22nd of July, 2015, that China is eagerly ready to invest $6.4 trillion in assets to $20 trillion by 2020 of cash everywhere abroad; they are very ready to spend huge sum of money to buy so many properties that could improve their economy back home.
This is happening as a result of falling in their stocks and domestic real estate market and in order for them to replenish their economy; their government is willing to ease the stringent restrictions that they have seen as the medium of problem for their economy.
Domain name is one of their targeted properties, though, domain name is not seen as a foreign property, on which they are now investing with the believe that, when they buy cheap and kept for sometime could be profitable when they are selling, it has got so high that - can you imagine that they are even buying what they considered as premium domains from end users for resale.

Residential properties amounting to 16 percent were being purchased in United States by the Chinese investors and they just began.  

In our next episode, we shall write on the types of  Chinese Premium Domain Names on which they are investing.

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