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I think that some people consider domain squatting parasitic because it creates little or no value and takes a corresponding level of effort.

The analogy would be bridge with a toll booth vs a gate in a natural mountain pass with a toll booth.

In both cases there is a service (passage from one area to another) for a fee. However the former is providing a service, the later is removing an intentionally created obstruction.

The only value I can see it providing is that the system places a valuation on domains based which prevents desirable ones from being bought by people who don't "seriously" want them. However that logic is shaky (transfer domain from non-serious to serious) and the value is questionable.




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