Namecoin is not only a currency but a share in a new technology: the .bit domain name system. .Bit is a peer-to-peer domain names system that is out of government hands so domains can not be confiscated.
Namecoin is the currency that is used to by .bit domains. I am the proud owner of debitcards.bit, and I have to say it was kind of fun. I paid 0.01 NMC for it, and I feel it was a good deal considering Godaddy is now selling domains for arond $20 USD all fees included.
Which brings me to the question, is NMC undervalued at around 0.80 USD per NMC? Well considering with one NMC you can purchase 100 .bit domains, working out to about 0.8 cents per domain. I would say the coins are definitely undervalued. They should be worth at least $10 USD per NMC, making each .bit domain worth 10 cents. C’mon internet real estate has never been this cheap.
The technology aside, psychological trading factors and once again, the impending Mt. Gox Namecoin launch will also effect the future value of this currency. If Litecoins look cheap at around $4 USD per, then Namecoins will look even cheaper at around 0.80 USD per coin. Smart investors won’t ask too many questions before buying once they appear for trading. I mean who wants to look at one price quote for months on end?
Bottom line Namecoins do look like a highly undervalued investment on all time frames. Namecoins are available through my affiliate link at Vircurex. You get a discount on fees when you sign up there.