I actually wouldn't see them as a scalper. I don't think it's just an equivalence. I've always been fine when looking around for a domain and one is taken but it's being used productively. The thing that feels annoying is finding a domain where the only thing it's being used for is as an advertisement for itself. It feels kinda like coming across a billboard that says "advertise here!".

The economist in me had to struggle to remember that if the prices are smart, it will lead to allocative efficiency. But it still feels a little ugly.

The differentiating factor is that I will lose money on the domain by itself. Paying 1,000 per year on registration fees on a domain that can potentially have an unlimited price increase means the value of the domain in any sale will very rarely compensate for the money I invest into it.

The key thing about .com is that once you buy the domain, the annual registration fees are more or less nominal — that’s what allows for very high sale prices. If I could buy my .dev name in .com for even 10,000 I would do it. Alas it is easily in the millions, IMO at least 10m+ as apart from protection for future material hikes in registration fees, .com is still THE gold standard.

For me, it made sense because I am actually using the domain, and I can make it my brand name, eg “Name.Dev” incorporated. This helps me from a trademark perspective as well, so for a small time guy with an idea, it’s a great feeling to get a chance to get a good name that I can put to use.

Presumably the OP is actually using the domain for something rather than just sitting on it awaiting a buyer.