A look at the pros and cons of buying dCity SIM from an investment point of view.
If you’re new to Hive’s play to earn scene and looking for the in-game token with the best passive income potential, then look nor further than the dCity SIM token.
When it comes to buying dCity SIM, there are however a number of pros and cons that you need to consider before taking the plunge.
In this section of our dCity SIM guide, we take a look at both sides of the equation, guiding you toward making an informed final decision on whether dCity SIM is for you.
Pros of buying dCity SIM
SIM is the lifeblood of the dCity game:
dCity is first and foremost a game and the dCity SIM token is the lifeblood of the game.If you’re going to build a city by buying and selling NFT cards, then you’re going to have to buy some SIM to start.
With the price of SIM currently lower than its HIVE peg, you’re currently incentivised to buy new NFTs for your city with SIM.
The SWAP.HIVE:SIM LP is the best Diesel Pool on Tribaldex:
While the SWAP.HIVE:SIM Diesel Pool might not have the highest APR, we’d still rank it as the best DeFi on Hive option currently available.The SWAP.HIVE:SIM LP has the advantage of being denominated in native HIVE on one side and the relatively liquid dCity SIM token on the other.
HIVE makes this LP a much less volatile option than some of the other LPs with layer-2 tokens on both sides.
SIM is currently trading well below its price peg:
Remember, the price of SIM is soft pegged to 0.005 HIVE.dCity has a variable in-game income tax system and the SIM demand lever that incentivises buying minting new cards with SIM over HIVE when price trades below the peg.
With price trading well below the peg and the ability to earn both SIM and HIVE rewards from the game, this could be viewed as the perfect time to buy SIM off the market.
Cons of buying dCity SIM
Possibly better returns elsewhere:
While the SWAP.HIVE:SIM Diesel Pool may offer the best DeFi returns on Hive, there are plenty of other pools on other blockchains offering much higher returns.As with every tradeoff in both crypto and life, this of course comes with the added risk of having to take your assets outside the safer, more decentralised Hive blockchain ecosystem.
If the potential returns are putting you off buying dCity SIM, make sure you weigh up all of the risks involved with pacing assets on another blockchain.
The current supply/demand imbalance may remain:
There’s no denying that there is a current imbalance between SIM supply and demand, causing price to hold well below its soft peg.The current established players' ability to generate SIM, which they continue to dump on the market, far outweighs any demand from new or growing cities.
While there are mechanisms in place to bring the price of dCity SIM back to its peg, there are no guarantees that in reality, it will.
Do the pros of buying dCity SIM outweigh the cons?
So the time has come to sway one way or the other.
Ultimately this isn’t a question that this LeoFinance Crypto Guide can answer for you and you’re going to have to come to a conclusion yourself.
We’ve helped lay out all the facts around dCity SIM and the tokenomics brought about by playing the game designed to influence price.
We can say that with both play to earn gameplay and DeFi on Hive options, there’s no doubt that buying dCity SIM has certainly become a very real option for investors.
Use the information found within this guide to dCity SIM to make an informed decision.
Best of probabilities to you.
Direct from the desk of Dane Williams.
Why not leave a comment and share your thoughts on the pros and cons of buying dCity SIM within the comments section below? Do you think the pros outweigh the cons? All comments that add something to the discussion will be upvoted.
This dCity SIM blog is exclusive to leofinance.io.