Is Dcity a good investment? 5 months later ...
Font used is Open Source - Edit by @libertycrypto27
Hello hivers, my adventure on dCity started on June 19, 2020 and today, November 24, 2020, more than 5 months have passed since my first login (precisely 5 months and 5 days).
In this post I will do some calculations to determine the profit and the Roi I have obtained so far and to answer the question:
Is dCity a good investment?
Before starting with numbers and calculations I briefly introduce the dCity game for those who don't know it.
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What's dCity?
dCity** is a simulation game that allows you to create and govern a virtual city. The city has your name and you have to make your city prosper.
The address of the dCity website is: https://dcity.io/ The page with the main information is: https://dcity.io/info I wrote a Tutorial on dCity, you can find it at the following address:
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Report Topics
Here are the topics that I will cover in this monthly report:
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**Valuation of dCity as Investment
- Total Investment Cost
- Value of my Cards Collection
- Value of Rewards
- SIM tokens
- HIVE reward pool
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Calculation Profit/Loss
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ROI
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My Current Strategy
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Final Considerations**
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Valuation of dCity as an investment
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In general to evaluate an investment you should always consider:
- **the total cost of the investment
- investment revenues**.
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Total Investment Cost
To date, November 24, 2020, I have invested a total of 956,98 HIVE in dCity.
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With 956,98 HIVE I created my virtual city. Today my city is composed of a total of 387 cards**.
In the following image there is my virtual city and each colored circle identifies a precise card (the smaller circles) or a group of 10 equal cards (the larger circles). **
In the following image you can see the detailed list with names and numbers of the cards that compose my city.
I haven't bought any cards for more than two months now because I decided to reach the Breakeven point before coming back to invest in dCity. You can use two ways to buy cards:
- the BUY section of dCity
- the MARKET section of dCity. *
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Value of my Card Collection
In order to calculate the profit and Roi I have obtained so far it is important to quantify the value of my card collection. To determine the total value of the cards in my possession I have chosen to compare two values:
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the value indicated in the DASHBOARD** section of dCity
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the value indicated in the DCITY STATS section which corresponds to the Market Value section of the following link: https://hivedata.space/statistics/dcity?s=city&user=libertycrypto27
As both values are approximated and estimated I consider the lower value between the two which in this case is DCITY STATS.
As you can see from the picture above the value of my city is *180631 SIM (23 November 2020).
I repeat is an estimated value because it is the result of the market prices of the cards in my possession.
The HIVE value of *180631 SIM (Highest Bid on Hive Engine) is: 899,54 HIVE (24 November 2020).
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Value of Rewards
In the dCity game there are two types of Rewards (REWARDS):
- SIM tokens
- HIVE reward pool
SIM tokens
My city produces a certain amount of SIM every day which is the result of the sum of the INCOME** attributes of all my cards. From this value then you have to subtract taxes.
My city produces after tax **1122 SIM per day.
1124 SIM are the equivalent of 5,58756 HIVE. *
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HIVE reward pool
On dCity there is a ranking based on the number of inhabitants of each city (Population**).
To view the ranking you have to click on **RANKING as indicated by the arrow in the next picture:
The first 400 players in the ranking are divided into parts depending on the positions 1% of the Reward pool.
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Currently my city has a population of **1475 inhabitants.
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Thanks to the population of my city I occupy the position number **334 of the dCity rankings
The prize is daily and the last prize I received was 0,160 HIVE. *
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Profit
( Revenues - Costs )
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Total Revenues
To calculate the profit I consider the total revenue as the sum of the following items:
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Value of my card collection on the market (**estimated value: 180631 SIM = 899.54 HIVE)
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Total Token SIM accumulated on Hive Engine and not reinvested (14995.151 = 74.67 HIVE**)
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Total Token **SIM sold on Hive Engine in exchange for SWAP.HIVE token (503.29 HIVE).
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Total of HIVE obtained from the ranking (42.62 HIVE)
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Total Token BEER obtained from the Brewery card in my possession (3.33 BEER = 0.69 HIVE)
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Total Token WEED obtained from Weed Farm cards in my possession (30.84 WEED = 7.46 HIVE) *
Total Costs
The **total costs are given by a single item:
- Total cost of my investment (956.98 HIVE**)
Now I have all the data I need to calculate profit and ROI. **
PROFIT
Profit = 1528.27 - 956.98 = 571.29 HIVE**
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My profit in dollars is 73.70 $
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ROI
( Return On Investment )
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My current strategy
My main short-term goal on dCity is the following:
- to reach the break-even point between:
- the total amount of rewards received and not reinvested on dCity.
- the initial capital invested**
When the difference between the total rewards received and the capital I initially invested will be equal to 0 I will have an effective zero risk. dCity is an investment in full health but, considering that I always like to evaluate the worst case, in the unfortunate event that dCity should collapse in a short time I would not lose anything.
As you can see from the calculations in the next picture, to reach the risk point 0 that I set myself I still miss 157,27 HIVE.
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I should reach the break even point in about a month. When I reach this goal I will invest 50% of SIM production in purchasing cards to expand my city and the remaining 50% to increase my Hive Power.
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Final Considerations
is Dcity a good investment?**
If I consider the results calculated above I can answer that dCity is definitely a very good investment (and it has been at least until now). In five months I made a profit of 73.70 $ and a ROI of 59.70%. After four months the profit was 57.6 $ and the ROI was 42.41%. So in one month I gained +16.10 $ over the previous month's report result and increased my ROI by +17.29. Really good results and I am really satisfied and happy to have chosen to invest in dCity.
But
However, important considerations must be made:
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The value of my city on dCity is an estimated value. Only if there is a market with high bidding (Highest BID) is it possible to determine a precise and immediately monetizable value of the cards in my possession and on the dCity market there is no possibility to make a bid. In addition, my city is worth 899.54 HIVE if I can sell all my cards at market prices. Actually some cards are easy to sell and others less.
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There are many other factors to take into consideration:
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the future trend of the value of SIM tokens
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the number of players who will join dCity in the future
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the future value of cards on the market...
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the future value of HIVE
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Important note:
dCity more than a game is an investment and mainly as such must be treated.
In every type of investment there is always a risk factor** to evaluate and consider.
My report is in no way an invitation to invest in dCity but only an analysis of my personal investment on November 24th, 2020.
I hope you liked my report and, if you like, follow me to read my future posts and reports on dCity ;)
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If not otherwise indicated the images are screenshots taken from:
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The font used in the calculation images is Open Source
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the images containing formulas and calculations are my property
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