Or a parcel of real estate, or a share of stock, a barrel of oil, an ounce of gold, a US dollar, a Chinese Yuan, or a bitcoin or . . . .
Where rationality, economic theories, and market reality clash, one must grasp at the unknowns -- and to paraphrase a quote from a rational economic theorist in the article further below --
The current internet stock prices seem "very high." To justify such prices, simply bullish or "crazy" analysts must see truly unusual future growth prospects. Similarly, other valuations shown might be regarded as either "very high" or simply "crazy."
Really? The valuations are "bullish," "very high," or simply "crazy?" LOL! Experts and economists are usually WRONG!
An astonishing record – of complete failure - FT.com: "The chief explanation is that the economy is complicated and we don’t understand it well enough to make forecasts. We don’t even fully understand recent economic history."
George Soros: "Classical economic theory assumes that market participants act on the basis of perfect knowledge. That assumption is false. The participants' perceptions influence the market in which they participate, but the market action also influences the participants' perceptions. They cannot obtain perfect knowledge of the market because their thinking is always affecting the market and the market is affecting their thinking." [source: Soros, George, Soros On Soros: Staying Ahead of the Curve, (New York: John Wiley and Sons, 1995)]
So don't just tell me what you think it is worth, and PLEASE, do not tell me what some online service estimates its value at -- tell me what it last sold for (the actual selling price), when and to whom. If you tell me the asking price, then show me comparable domain name sales. Then give me the value proposition or the value add to justify a higher price. Then tell me your marketing methodology, your sales strategy, your buyer profile, the broker or auction site. Give me all the variables or at least the ones you can actually identify (because there are many, many variables you will never be able to fully identify). A final word of advice: Stop selling your dot com domain names so damn cheap!
Article - How Much is a Tulip Worth
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