SPL vs. Traditional Investments - Part 1 - Card Rentals vs. Major Stock Indices
Introduction
This will be a multipart series where I lay out the comparison of Splinterlands assets vs. traditional investment opportunities. The purpose of the series is to give a simple overview of the potential return of investment on the different assets. I’ve seen a lot of comments going around saying that either of the assets I'll cover are not a good investment; As someone with quite a bit of experience in traditional investment I beg to differ and would like to shed some light on them.
Card Rentals vs. Major Indices
The comparison is one of my personal favorites as I am a big fan of passive income, card rentals vs. major stock indices. I do not include card appreciation as I have no way of predicting how it will develop, and if you’re looking for that kind of an investment I’d recommend buying packs instead. I’ll cover buying card packs & why this is my recommendation in a later part of the series.
Below I've compared a range of different cards and what they the ROI of buying them at market price and renting them out today, for a year. As well as how many days it would take of renting them out at current value to get a higher ROI than investing in S&P 500, Nasdaq or Russell 2000 for 1 year based on their performance for the last 10 years.
Conclusion
As we can see not even the least profitable of the cards requires you to rent them out for more than 3 months to get the same return as any of the major indices listed. No this is not a way to get rich tomorrow but I'd still call this one hell of a deal.
If you found this info valuable, feel free to drop a comment & say what asset you'd like me to compare next.
Disclaimer
I own all of the cards & actively rent them out, so yes all of the numbers above are real scenarios. However please do note that the details in these posts will vary to a large degree over time depending on price development & the developments of the overall crypto landscape. I also do not cover all risks with holding these assets so please do your own research. The assigned risk level is based on the return and the volatility of the card, these are however my opinion so don't take them at face value.
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