Essentially, domains are (currently) the starting blocks for the whole internet. Without one, there is no website, no email, nothing.
domains themselves though are more of a convention. There could be internet and all without domain names, .. its just that the naming was a convention since otherwise there would be just strings of numbers that no one would remember.
They are an easily tradable asset - some with inherent value - all can be made to have value.
I don't think its necessarily inherent (aside from notion of collectibles or memorabilia type value.) the value is measured in traffic. no traffic, no value. and what is traffic? .. consumers w/ wallets.
They have a minimal carry cost in renewals, no storage costs, little handling cost.
extremely low overhead
The vast mojority of trades are between a small group of people 'in the know', but ultimately they are (usually) of most value to people outside of this group.
granted
There are a limited number of naturally useful names (this number changes as new topics/technology/tlds are created, or die off) which will prop up values while the domain system is in place.
supply and demand
.. I've been struggling to come up with a very concise definition to include all of the factors so far discussed in this thread, but i'm no longer sure it will be helpful or not.
in any case, given your initial examples - domains, fuel, batteries - it is interesting to look at..
- the advent of the PC made possible the internet which created a demand for domains
- the advent of the combustible engine made possible the car which created a demand for fuel
- the advent of wireless communication made possible new mobile devices which created an increased demand for battery power.
I think here is a good avenue to explore. So what are the latest new technologies being adopted, and what will they create a demand for?
