SIM -43% - Is dCity still a good investment?

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Hello hivers and dCity players,
my adventure on dCity started on June 19, 2020 and today, February 9, 2021, more than 7 months have passed since my first login on https://dcity.io/ (precisely 7 months and 21 days).

I write a report on a monthly basis to monitor my investment on dCity and to calculate the profit and Roi I got each month.

Since my last report (December 28, 2020) there is one factor that has changed and it is not a small one:

the value of SIM tokens.

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On December 28, 2020 the value of 1 SIM token was 0.00490 HIVE (Highest Bid on HiveEngine/LeoDex).
Today February 9, 2021 the value of 1 SIM token is 0.00279 HIVE (Highest Bid on HiveEngine/LeoDex).

The SIM token has lost 43.06% of its value and for this reason in this post in addition to calculating the eventual profit and ROI I got from my investment on dCity so far I will also try to answer the question:

Is dCity still a good investment?

Before proceeding with the evaluation of dCity as an investment I briefly introduce the game of dCity for those who do not know it.

What is dCity?

dCity is a simulation game that allows you to create and govern a virtual city.
The city has your name and you must try 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:
https://peakd.com/hive-140217/@libertycrypto27/dcity-tutorial-for-beginners.

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Report topics

Below are the topics I will cover in this monthly report of mine:

  • Valuation of dCity as an Investment
  • Total Investment Cost
  • Total Revenues
    • Estimated Value of my Card Collection
    • Total value of SIM tokens accumulated on LeoDex/Hive Engine and not reinvested.
    • Total value of SIM tokens sold on Hive Engine in exchange of SWAP.HIVE
    • Total HIVE obtained as a prize from the dCity ranking
    • BEER and WEED tokens
    • Total Revenue Calculation
  • Profit/Loss Calculation
  • ROI
  • Final Considerations
    • Dcity is still a good investment?

Valuation of dCity as an Investment

dCity more than a game is an investment and therefore to evaluate it I must calculate and consider:

  • the total cost incurred to date
  • the revenues obtained up to now

Total investment cost

Until December 28, 2020 I had invested a total of 1092.10 HIVE on dCity.
In the following days I bought several cards from the MARKET section of dCity and thus the total cost of my investment increased.

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I bought the following cards:

  • 40 Hotel Cards (191,052 HIVE) - December 31, 2020
  • 10 Restaurant Cards (51,329 HIVE) - December 31, 2020
  • 40 Hotel Cards (177.03 HIVE) - January 9, 2021
  • 21 Hotel Cards (82.40 HIVE) - January 25, 2021
  • 10 Gym Cards (40.36 HIVE) - January 25, 2021

To buy the cards I used SIM tokens and in calculating the total cost I considered the equivalent value in HIVE of the SIM tokens I used at the time of purchase.
The total cost I incurred to purchase the cards was 542.081 HIVE.

So, to date, I have invested a total of 1634.181 HIVE (1092.10 HIVE + 542.081 HIVE) on dCity.

At the time of writing this report HIVE is worth 0.195$ and therefore so far I have invested a total of 318$ on dCity.

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Total Revenues

In order to determine profit or loss, I need to calculate the total value of the Revenues I have earned to date.
I consider total Revenues to be the sum of the following items:

  • Value of my card collection in the marketplace
  • Total value of SIM tokens accumulated on LeoDex/Hive Engine and not reinvested.
  • Total value of SIM tokens sold on Hive Engine in exchange for SWAP.HIVE tokens
  • Total amount of HIVE tokens obtained as a reward from dCity ranking
  • Total value of BEER tokens produced by the Brewery card in my possession
  • Total value of WEED tokens produced by Weed Farm cards in my possession

Value of my Card Collection

Each card that makes up my city can be sold on the dCity market and therefore has a certain market value.
To determine the total value of the cards in my possession I compare two values:

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Both values are approximated and estimated and for this reason I consider only the lower value between the two that in this case is the one indicated in the DASHBOARD section of dCity: 335k SIM.

The value of 335k SIM is an estimated value because it is the result of the market prices of the cards in my possession.

As you can see from the image below the HIVE value of 335000 SIM (Highest Bid on LeoDEX/Hive Engine) is: 904.50 HIVE (Feb 9, 2021).

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Total value of SIM tokens accumulated on LeoDex/Hive Engine and not reinvested.

My city produces a certain amount of SIM (Non Fungible Token) every day which is the result of the sum of the INCOME attributes of all the cards in my possession.
From the total it is necessary to subtract the taxes whose value is variable.

On my LeoDex/Hive Engine wallet I have 25059.306 SIM cards.

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The HIVE value of 25059,306 SIMs (Highest Bid on LeoDEX/Hive Engine) is: 67.66 HIVE (Feb 9, 2021).

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Total value of SIM Tokens sold on Hive Engine in exchange for SWAP tokens.HIVE

A portion of the SIM tokens produced by my city (about 105000 SIM) I sold on Hive Engine in exchange for SWAP.HIVE.

From the sale I got 503.29 HIVE.

Total HIVE obtained as reward from dCity ranking

On dCity there is a ranking based on the number of inhabitants of each city (Population).

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Currently my city has a population of 1680 which allows me to rank #344 on the ranking and allows me to receive a daily prize of 0.243 HIVE.

The total value of prizes received to date is 52 HIVE.

The BEER and WEED tokens

In my card collection I have:

  • 1 Brewery card that has produced approximately 4 BEER tokens (0.84 HIVE) to date.
  • 3 WEED FARM cards that have produced up to now about 38 WEED tokens (6,08 HIVE)

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Total Revenues Calculation

I now have all the data I need to calculate the total revenue value:

  • Value of my card collection in the market (estimated value: 335000 SIMs = 904.50 HIVE)
  • Total Token SIM accumulated on LeoDex/Hive Engine and not reinvested (25059.306 = 67.66 HIVE)
  • Total SIM tokens sold on Hive Engine in exchange for SWAP.HIVE tokens (503.29 HIVE).
  • Total HIVE obtained from the Leaderboard (52 HIVE)
  • Total BEER tokens obtained from the Brewery card in my possession (4 BEER = 0.84 HIVE)
  • Total WEED tokens obtained from Weed Farm cards in my possession (38 WEED = 6.08 HIVE)

Total revenue is 1534.37 HIVE.

Now I have all the data I need and can calculate the profit and ROI.

PROFIT/LOSS

( Revenues - Costs )


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After several months I do not have a profit but a loss.

Loss = 1534.37 - 1634.18 = -99.81 HIVE

My loss in dollars is -19.46 $


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ROI

( Return On Investment )

If I divide the loss by the total cost of my investment I get the ROI.


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After more than seven months, I achieved a ROI negative of -6.11%.

Final Considerations

The results of my report should be put in context with the current situation:

  • the value of HIVE is rising (finally :)
  • the SIM token has lost 43% of the value it had on December 28, 2021.

If I hadn't kept buying cards in the last 30 days I would still be in profit.
It is absolutely normal that by increasing the capital invested the ROI decreases because every card bought needs a time interval of more than 100 days to amortize the cost of purchase.
For example, the Hotel card needs 169.10 days to amortize its purchase cost.
After 169 days it will produce only profits.

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In the dCity game I initially invested 785 HIVE coming from my power down on Steem.
Then I always reinvested the SIM tokens produced by my virtual city.
If I consider only my initial investment and then only the initial amount of HIVE I took from my pocket and used to start I am well above the break-even point and therefore still in strong profit.

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I think few investments allow you to get to the break-even point in a few months and make a profit of almost 100% over the initial investment.

Also currently my city produces 1721 SIM per day after taxes.

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Based on the current value of SIM tokens my city produces an equivalent value of 4.64 HIVE per day.

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To get back to having a profit and positive ROI I only need to wait 21.51 days (99.81 / 4.64).
Obviously if the value of SIM tokens goes up I will need less days and vice versa the time needed to return to positive will increase.

Is Dcity still a good investment?

After four months my profit was 57.6$ and the ROI was 42.41%.
After five months my profit was 73.70 $ and the ROI was 59.70%.
After six months the profit was 82.76 $ and the ROI was 65.90%.
Today and after more than 7 months I do not have a profit but a small loss - 19 $ mainly due to the increase of my investment in the last month and the loss of the value of the SIM tokens.

Unfortunately I don't have the ability to predict the future but I am convinced that dCity is still a good investment because it is a game I like, the creator @gerber is very active, and above all dCity has a constantly increasing number of active users which shows that it is a game that many people like.

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For the above reasons and considerations I will continue to invest in the purchase of cards to expand my city and reach my goal of reaching a production of 3000 SIMs per day.
Obviously considering the good moment of HIVE (fingers crossed and hope that it will reach the moon!) I will use as method of payment for the purchase of dCity cards only and exclusively SIM tokens produced by my city.

I hope you enjoyed this report and if you like, follow me to read my future posts and reports on dCity ;)

Important Note:

dCity more than a game is an investment and mainly as such must be treated.

In every kind of investment there is always a risk factor to evaluate and consider.

My report is not intended to be in any way an invitation to invest in dCity but it is only the analysis of my personal investment on February 9, 2021.

The images in this post are screenshots taken from the sites:

https://dcity.io/

https://leodex.io/

https://hivedata.space/statistics/dcity

Images containing formulas and calculations are my property

The font used in the images related to the calculations and in the images edited by me is Open Source

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19 comments
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Dcity is undoubtedly an excellent way to earn passive income daily which is the beauty of it. I believe in the long term of HODL in this game things will surely pay off in the future.

It's best to get in now in my opinion

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I don't play at DCity, but the idea of ​​passive income is a good idea and this will make this game spread even more.. as you wrote, that last negative ROI doesn't seem worrying to me too

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In effetti richiede davvero pochissimo tempo come gioco ed è proprio classificabile come passive income.
Si il roi negativo non è assolutamente preoccupante ma fisiologico perchè è soprattutto dovuto all'ulteriore investimento di 500 HIVE che ho fatto ma dovrei ritornare presto in positivo ;)
!BEER

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I think I should venture into this, the Sim price reduction should be an advantage to new buyers??,

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It all depends on the future value of SIMs and HIVEs.
Some cards have a good price in SIM and buying them now will pay off.
For the moment I only use SIMs to buy cards because HIVE is increasing its value.
Thanks for stopping by @corporateay :)
!BEER

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Thanks for replying, I will follow the link above now and see where I can start from

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I keep hearing about this game even though I did not have the chance to be a part of it.
Thank you for the detailed report :)

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Keep it in long enough you will get positive ROI (if you do not continue to buy) just might take longer. Earlier you got in better the profit.

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Good point @bearbear613
I will continue to invest the SIMs that my city produces until I get to 3000 SIMs a day and then use the SIMs in this way:

  • 50% purchase of cards
  • 25% HP
  • 25% LeoPower
    Thanks for stopping by :)
    !BEER

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