Splinterlands - Stacking NFTs in a Bear Market

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In the past 48 hours there has been back to back cryptocurrency price drops.

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The leading cryptocurrency BTC is not fairing well in price either but currently off its lows. Yet here we are will all the opportunities in the world to be buyers. For me at times like this I prefer to invest in assets that have best utilities because they hold up in value. Splinterland cards is one example.

2018 Cryptocurrency Dip

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Back in early 2018 the price of cryptocurrencies noised dived for several months. A lot of altcoins lost significant values. Yet things that held up somewhat reasonable well back then were Splinterlands cards. Do not get me wrong. Splinterland card prices also were dropping, but the price drop was not as significant as altcoins.

One of the reasons I think Splinterlands cards held up in value was because of its utilities. Ownership of a card meant multiple possibilities to earn income such as leasing out the card, using the card to play to earn, or investing in the card for future price appreciation. Since then all these utilities have been proven valid and now we maybe in the mist of another bear run and I believe it is another opportunity to continue investing in Splinterlands.

DEC Burn Rate Prices!!!

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I have been spot checking card prices and since the launch of Chaos Legion packs the price of cards have drop somewhat. Some cards are near its intrinsic value. Over a dozen reward cards currently are priced under 2x their DEC burn rate. This is a sign that purchasing cards in bulk on the lower prices are ideal investments. Why?

Back in 2019 as the prices of crypto continue to free fall there were investors in Splinterlands, no names to mention here, who decided to sell cards at rock bottom prices. This meant many who started investing back in 2019 were paying prices of the cards are nearly its DEC burn rate. Some got lucky in purchasing cards under the burn rates making it highly lucrative to burn in order to receive more at the time.

The potential that some cards could reach DEC burn rate is possible and in addition DEC price could potentially fall further.

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This all leads to overall lower prices. Yet how is this good for card owners? Well the prices of cards bottomed not long after altcoins found a price bottom around 2019 and since then the card prices have steadily increase and went parabolic middle of 2021.

Accumulate Mindset

No matter how much the Splinterland's cards or tokens had fallen in past bear markets the assets have all appreciated to many factors higher. Even if card prices fall back to DEC burn rate value from here since DEC price itself remains 4x its pegged value the cards are technically 4 times its intrinsic value in terms of $USD. Although there is likelihood all these assets turn lower and hit zero you have to ask yourself, will it really a possibility?

As a fan of the game I have a set mindset on where I want to buy if at all there is an opportunity to invest more in the game. Everyone who plays have a set price in mind. With all this demand it is a major reason why eventually we will see Splinterlands cards continue its rising trend of price appreciation.

I barely purchase much of any cards for almost a whole year. The main reason this was the case was because I felt prices were extremely high as if FOMO kicked in. Now with prices falling I have started to purchase more and will continue doing so. The way I see it the more collection power I have now the more valuable they will become down the road. There another utility for owning cards. Passive income in the form of earning SPS token air drop for simply having collection power. The more collection power the more SPS tokens earned.

Conclusions

In bear markets it is one of the best time to accumulate wealth. This is time where asset prices are affordable. Hard to believe but I seen in the past and believe we are in they mist of another buying opportunity. In crytocurrency we all have the opportunity to continue accumulating. One of the better asset to accumulate is Splinterlands cards. There is just a lot of benefits just for owning the cards. Whether it is opportunity to earn passive income by renting out the card, holding the card to earn coin airdrops, or simply use the card in play 2 earn it makes sense to purchase cards.

In addition we should think of these opportunities or utilities of the cards are good reasons control our own destiny. What I mean by this is no matter what price I have paid for the card I will have ample opportunities to earn with the card to make back principal and create additional streams of income beyond my initial buy in cost of investment. I can not say the same as if I bought a altcoin on an exchange. Instead I have to wait and hope the price would rise in order to profit. While if I held ownership of a Splinterlands card I have the opportunity to earn income to offset the cost of admissions.

Until next time thanks for reading!!!

If you are interested to learn more about Splinterlands please go through some of my other posts. Order is from newest to oldest posts:

Splinterlands - Securing Your Cards From Hackers

Everything About Dark Energy

All You Want To Know About Reward Chests

SPS White Paper Cliff Notes

Helpful Links for New and Veteran Players

I have plenty of other cards for rent! Just go on peakmonsters and check out the market place and if you are curious what I offer here is a link:

mawit07 rentals

If You have yet to take part in playing this great game called Splinterlands please click on my referral link. It is free but in order to earn real assets such as cards and token you would have to invest in a starter deck or purchase game cards. Join the discord to learn more. Good luck!


THANKS FOR READING! CONTINUE TO PLAY SPLINTERLANDS!




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5 comments
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nice post mawit. even the chaos cards are going for too low

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