To rent a base model VW polo it costs 60€ a day and 70€ for unlimited kilometers. To buy a new Polo, it costs 16,000€, which means there is a ROI of 266 days. This doesn't take into consideration running costs, wear and tear, storage costs, employee costs and the rest that a car rental company incurs.
To rent a normal apartment it is conservatively, 700€ a month, which is about 23€ a day. To buy an apartment, the low side is around 100,000€, making the ROI 4347 days, or 12 years. Again, this doesn't take into consideration other costs, like body corporate fees, water, wear and tear, appliances etc.
The difference between these two investments is quite obvious, as while the return on investment is much faster for the car, the car has a depreciating value that moves toward zero the longer it is in operation. The apartment however will likely hold or appreciate in value over time, meaning that while the car will be sold cheaply, the apartment will be sold for about what it was bought for after inflation is considered.
This is the most valuable card I have I think, a Gold Foil Epona, which is worth about 1800 dollars.
It rents at the moment for between a hundred DEC early in the season up to 1800 Dec a day at the end of the season, so it averages about 400 DEC. 400 DEC is currently worth about 4 dollars US, so the ROI is about 450 days currently. Which is about 70% longer than the rental car, but unlike the rental car, it doesn't degrade. And unlike the apartment, it doesn't have any running or maintenance costs either.
Currently (it is the first half of the season still, this is getting the highest return from rentals.
It is only worth 30 dollars, but it is getting about 300% a year return, which means that it has an ROI of about every 120 days. Quite incredible - except toward the end of the season, it is going to return closer to 2 to 3 times that, so it will be closer to every 60 days. More incredible.
Now, these returns depend on the demand for the cards, which means they will be affected by for example, changing values in DEC or the new Chaos Legion packs that are going to arrive in the coming weeks. This means that there is more risk involved than buying an apartment and a car to rent out, but there are also far fewer overheads and things to consider, as well as the initial investments are much less. While not every card is created equal form a rent opportunity, those who do their research and buy wisely, can make a decent return.
As they say,
Location, location, location!
And the location is on the Hive blockchain,
NFTs such as these are the future of property in many forms and will increasingly make inroads into the investment markets as valuable assets. And yes, these are assets, even if they don't have a physical form, because their "form" is protected by cryptography. There are still many risks, but the people who think blockchains and crypto don't have value are going to find themselves sorely mistaken, as much like the buffs on the cards themselves, crypto offers assets attributes that other assets don't have. No one can crash a card, no one can burn a card down - but yes, these things can still be stolen, still are subject to supply and demand and market fluctuations and other conditions of assets.
Because people are increasingly pushed out of the marketplace of traditional assets like property, people will instead choose to keep renting a place to live and instead become owners of digital property. What is interesting is that once this happens, the demand on housing in some forms will change, meaning that the value of some property could drop as people become more content to rent, with rents going up. While this might balance values, it could affect the dynamics of the housing markets quite heavily.
It is going to affect everything quite heavily.
While the markets are heavily manipulated, the value eventually has to connect to something in the real world over time and if it doesn't it will start to be reflected in price. Demand is greatly influenced by culture and the current economy is benefiting people who already control a huge amount of resources and allowing them to get more because of it. What happens though is, it starts to eat itself as in order to grow, it has to extract from its tail and because it is pretty much centralized, this creates massive issues in the global economy, making it increasingly unstable and prone to collapse.
Decentralized businesses are not immune to failure, but because the distribution of them can be spread wide and interconnected with other economies that leverage each other's opportunities and resources in various ways, when demand dwindles into failure, the hole left can be very quickly absorbed into the greater ecosystem, with minimal effort or disruption. This means that the cycles of boom and bust are far less severe - once it is the norm. For now though, expect volatility, because this is just the start of the industry.
Now, I have bought the vast majority of my cards in packs and I have been lucky to get a few higher-end cards in the openings, but there are also people who are rewarded these kinds of cards on rare occasion through playing alone. In time, their rewards could be worth more in rent than if they own an apartment.
Currently, I could rent my cards out for conservatively about 75,000 DEC a month, which is 1068 HIVE, or about 700 dollars a month at the moment. My entire deck is worth about 35,000 dollars. That means it has an ROI of 1521 days, or four years. That is 1/3rd the price of a rental apartment and the return is 1/3rd the time. But, if my cards were worth 100,000, it would still likely rent out for about the same return, meaning as an investment, my deck is worth 3x as much as an equivalently valued property. Weird, hey? I will also add, that I haven't paid 35,000 for the cards, it is more like 12,000 or less - so there is the appreciation in price to consider also.
Renting is a service, as it means that I don't need to own a car to use one when I need it, I don't need to own a house to have a place to live and, I don't need to own a Splinterlands card to use it to play. But, I can use each of these assets to generate an income in various ways. I could rent a taxi to be a taxi driver, an apartment as an office for my business - but the card, I can combine the two and earn with it from my phone and the comfort of my couch and then what I earn, I can invest in other ways too, including renting reward cards out as well.
The way we look at assets is changing and as such, so too will the way we look to generate income - which changes the employment industry also. But having said all of this, this post isn't about influencing anyone into investing into Splinterlands as there is a lot of risk involved. What I hope it does do, is illustrate the changing forms of what an asset is, and hints at how this change is going to affect traditional markets and our local culture. A lot of people are still to understand why blockchain and crypto (which always should be hand in hand) are going to bring value to the economy, and how they are going to affect everything that is important to us, but they will learn quickly, because they are highly incentivized to do so.
We are what we eat and our culture changes to reflect our diet. Because of the poor conditions we have been part of creating, we are going to start reacting and shifting what and how we demand, and because of the spread of crypto, we are going to not only create new assets, but we are going to demand a different economy too. There is no one size that fits all, but the possibility of where we are headed with decentralization is that we are able to make the many sizes that fit us - even as we ourselves keep changing what we value.
[ Gen1: Hive ]
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Well, the factor that matters a lot, almost next to Location when calculating the ROI of a rental property is...we can't actually be sure when it will be demanded. Especially for a car. Most of the time, it will just sit idle. Perhaps not where the supply is perfectly matched to the demand...
And such is the risk with NFTs as well.
The best thing about blockchain in this case is, again, giving access to such a process to people with otherwise restricted access. Lower entry level. Easy communication.
Let's say I have some photo equipment that could have been rented were the location conditions met i.e. the people who would rent it would near the same physical space, they have the money to do it, they have a plan about what to do with it...) It could be an asset. If used.
Damn it and thank you. I was meant to bring the "mobility" of the asset into the conversation when talking about location, but I struggle to remember everything I think to include as I write these days. It is super important too!
With digital assets, they can be rented to anywhere, from anywhere and traded cross the globe, without having to ever leave the home.
Ah, don't worry, a story should have a focus and not spread too thin, anyway. Besides, it's good to leave something to imagination and something to discuss with us ;)
Aye, that's a great one, besides the low entry cost. It then becomes a matter of comparing the markets. Is your local one greater than the target audience on the blockchain you use? What is the trend — which one is shrinking and which one is expanding?
So easy to say in hindsight, when much is lost...
It also means that our assets become useful globally, so we are open to a global market. Prior to these times, the only practical way to get global exposure was on a centralized platform.
I really need to dig into my cards and take a look at the ones that I am not really using. I know I could be making a ton more money than I am. I am just afraid the money I will lose in SPS is worth the money that I am going to be gaining in DEC. It is a trade off I think.
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Yes. Especially at EOS.
Umm, they are still yours, you own them. Rented cards don't collect SPS, only owned cards. I can rent all of mine out and still collect the SPS.
Discord me if you want.
I was under the impression your power goes down if you rent them out so therefore your SPS claim amount goes down. Of course then your DEC is going up, so I am not sure if it is enough to offset.
Good news, mate. You still get the SPS drops for the cards, even if somebody else is playing them. SPS drops are based on ownership.
Oh, that is great news! Thank you!
Thanks Matt - I am too green to be an authority on any of this - but luckily, I know a few who are ;)
Due to conventional wisdom being considered, the idea is that it is always better to be an owner, as opposed to a renter. In many asset classes, this is still true. Owning a house as a homeowner is not a bad idea. However, owning multiple properties as a business is a model that is dying. Property taxes are increasing at an alarming rate. poor service delivery also factors in. Especially, since those service fees keep rising. Compound that with tenants who have not paid rent in practically years. Profits are marginal and a waste of time considering the investment required.
Ownership of digital assets is something I am quite confident in. High growth sector, highest returns compared to any other industry, as well as holding an asset that is ultimately unceasable and not subject to borders.
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In my city, they increase the land tax every 20 or so years - some areas went up by literally 500% - it meant that older people who had lived in the area for decades had to sell, as they couldn't afford to pay. Crazy.
What was once wisdom is fast becoming foolish. Discern, adjust, and even thrive seems to be the only approach.
Wow you have such a good collection . I think people nowadays believing on virtual assets more than physical .There is no doubt Splinterland will be heading the blockchain Gaming industry .I am too active and also investor in this platform .I also bought virtual land in Upland which is also game on EOS which let us buy plot .you may rent them or build house and earn UPX token . The future of Gaming industry is bright where entertainment packed with earn passively.
It is definitely going to be intereesting o see where it is in a year or two from now - maybe three :)
I would always prefer owning over renting when it comes to a need tho.
If I am going to be needing something, it will always be better to own it than rent it in my opinion.
I like the way you moved from the cost of a polo and a house and how you related it to splinterlands
But for example, if I am moving house and need a moving van, I am happy to rent it for a day rather than buy it :)
I need to visualize things to get a good sense of them :)
No risk no reward. Those who take the risk chose to take the gamble and be further ahead. They are the leaders for those who try to mimic their steps. I have always preferred owning over renting. Not all can do that. We must have the wisdom to choose carefully.
I think it is better to own, but in the case of some of these cards at least, I am happy to rent them as I need them, rather than own a lot of cards I don't use much.
The numbers you're pouring out from Splinterlands is quite staggering. Still not enough to make me give it a shot, but definitely good enough to hope my bet on Leofinance pays off in. Few years
It is pretty crazy, but it isn't for everyone for sure. I think there will be quite a few willing to play though.
Good luck with LEO. Hopefully Project Blank makes a splash.
Well, they should buy so that we can rent, but who would buy? Thus, some people should stay in the marketplace of traditional assets, who like this kind of invesment.
I agree that housing prices will drop and renting will increase because many people can't afford to buy house with such prices.
I will buy. Many others too. At the end of the day, it is better to be an owner than a renter, but it has to be considered case by case.
The drop is coming.
.. and I thought I was a ruthless monster-lord, is that the correct technical term.., I think you will know what I am getting at. I am quite envious of your horde of Mylors. I haven't got even a one.
I think I opened about 700 packs of DICE, but I am not sure. Would you like me to delegate you one to play with? I have a gold lvl2 available in a few hours.
All at once, or one at a time? I have opened a few hundred in my time.. mostly Betas. All at one would ruin the thrill. Mylor.., thanks but I am not playing at all right now. That might change when CL is released.
A bit at a time. Lots of 100 mostly so I could get the 10 extra. My first ones I bought on HE as I had never logged into SL before :)
Let me know when you want one :)
Was consider the last word and it was going to end or was there going to be more after that? Will we ever know? :D
Damn it again...
My spellchecker (abh12345) pointed it out too and I forget to change it :)
Consider it done, now.
I shall contemplate doing so. I'm glad it didn't concern too many people as such may constipate some and they may conflate it with other things XD
This one really got me thinking, cheers :)
I've actually been surprised to see just how liquid the Splinterlands card rental market is.
The demand is certainly there.
We're truly on the cusp of a revolution in digital asset ownership.
Splinterlands cards are a perfect example of the value and entire flow-on economies that are already being created.
Can't wait to see where it continues to go!
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I am surprised too, but I guess it makes sense considering the value on offer, not just in the P2E model, but the play to own model too. While it might be costly to rent and play early, the more one is able to, the more chance to get cards to rent and they could rent for years down the track.
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Wow it's quite interesting thanks for the update
you read 1400 words in a max of two minutes - well done!!
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