Markets have a history of efficiently allocating resources, this much is true.
Its only true when those markets have sufficient liquidity. We have gotten used to regulated markets where the SEC and others, make sure that liquidity is maintained and block trading of instruments when liquidity is insufficient. In order to be liquid, a market has to have a sufficiently stable supply. If it is a commodity market, where the instruments being traded are then consumed by the buyer in producing their products or services, then the only way to maintain liquidity is to have a steady supply of fresh commodities. This is not too hard when talking about orange juice, pork bellies or even gold. But they are not making any more IPv4 addresses. The supply is fixed and the problem which we face is that the global unallocated supply is shrinking to the point of exhaustion in about two years. In this situation, I can't see that it would be possible to have a liquid IPv4 address market for more than a short period of time. Since IPv4 trading is not regulated by the SEC (unless it comes under some umbrella provision) the way is open for some group of SMART, WELL-EDUCATED INDIVIDUALS to rig the market and make off with lots of cash when it collapses. Everyone in the network operations sphere is a rank amateur when it comes to making markets, maintaining liquidity and regulation of trading. We cannot possibly hope to create a market within the next two years which is beneficial to the Internet network operations industry. --Michael Dillon