* Buying up a limited resource with the intent to sell it to someone else later
* Often is good land that could be used by someone else to create value instead
* Lots sit unused for years waiting for a buyer
* Land in "just the right spot" for me is being "squatted" by someone trying to flip it
Do you have the same opinion about that business, and if not, for what reasons?
There are so many details which cause problems with these 'simple' solutions which once you start digging, you end up having to compromise a lot and end up with an equally, if not more, shitty solution.
The difference to real estate business lies in the fact that it is much more diverse and way harder to manage.
Domains are managed by one organization, ICANN (with respective tld management), which facilitates a policy change. We also see changes in digital space progress much faster.
There are approx. 600'000 new domain names registered over Verisign in Q3 2020 alone [1]. In the future, the significance of the problem will only grow.
* Take a risk proportional to the value of the asset.
* Pay taxes proportional to the value of the asset.
That's a little different from waiting for a domain to revert to the registrar and then paying $8/year for it.