If you read that title, you probably think I'm crazy, right? As a matter of fact, that's exactly what I would have thought if I read that title a few days ago. 😅
That's what I would have asked you a couple of days ago. And on many Ethereum-like blockchains, most NFTs really don't have much of a use case - other than as a status symbol which is recognized by those in the know.
Thankfully, the most prominent NFT projects on SmartBCH are different and offer additional use cases. And these use cases are very appealing to me.
Passive income is income that you don't have to spend time on acquiring. As an example, you can buy a powerful graphics card and mine Ethereum from the comfort of your own home. After the initial setup, the revenue comes in regularly without you doing much - other than checking the computer is still online. However, you will need to pay for the electricity that the hardware consumes. And you may have to tolerate the noise it makes. And it takes up space, too.
A digital asset does not take up space. It does not annoy you with any noises. And you don't have to spend extra electricity on it. That's why stakeable NFTs are the ultimate asset for generating passive income.
However, the NFTs are only as good as the team behind them. The team needs to build a platform that offers an appealing use case for the reward token that they send you for staking your NFTs. And the team needs to stay committed. If they abandon the project, a lot of the value of your NFTs evaporates.
The Tropical team has shown that they persevere - even when they are faced with adversities. They successfully launched their DEX despite a less than welcoming response by some of the members of the BCH community. And they made their DEX and their reward token Daiquiri a success. Everyone who bought Daiquiri is now in profit - as we have just witnessed a new all time high for Daiquiri.
The reasons for the price appreciation are a limited supply of only 31 million Daiquiri coupled with token buybacks and burnings by the team. The emission rate is reduced by 3% each week until the maximum and when the new Tropical NFT marketplace will open, you will be able to buy and sell NFTs for Daiquiri. And a part of the fees will likely be burnt. This introduces a deflationary tokenomics to a token which has a limited supply anyway. If the demand remains constant or increases, guess what the Daiquiri price will be doing?
If you have ever bid on NFTs on other market places, you may have noticed that the crypto you used for bidding is just idly sitting by - when it could have generated yield in a single token pool or a liquidity farm on a DEX.
Tropical announced yesterday that they will fix that problem. They haven't revealed the details yet, but imagine your Daiquiri working for you while you are using it to bid on NFTs. Who will want to use a different platform for bidding on NFTs instead?
Nobody can predict the future. However, I believe that there is a good chance that Tropical will become the dominant NFT marketplace on SmartBCH. If that happens and NFTs continue to be as popular as they are right now, it will increase the Daiquiri price. And a high Daiquiri price will make it appealing to stake your NFTs on Tropical.
Last night I pretty much went all-in on Tropical and I did some late night shopping. 😅
I bought three NFTs with the expectation to either sell them with a modest profit before the Tropical staking is available - or I will use them for staking instead once that feature is available on Tropical.
The good thing is that Tropical offered their NFTs for introduction prices with nice discounts to where they see the market value of their NFTs. And the staking rewards will be based on their value assessment. That means that if you buy the NFTs now, you are pretty much buying two Dollars worth of staking power for one Dollar of cost.
Being early in crypto is what can generate life-changing returns. If you buy crypto with a use case and a good product market fit. I believe Tropical's Daiquiri and NFTs do qualify for that. And last night, I may have set the foundation for changing my life.
Apart from all the rational explanations above, I just really like the pixelated original artwork of the Tropical NFTs. You can really tell that they are masterfully crafted.
However, of course I wouldn't have paid the prices that I paid just for the artwork itself. My investor mindset was what made the decision. Not just the love for pixelated artwork.
If you want to have a look at what I bought, here are the three NFTs in order of increasing prices. I listed them on Oasis for slightly more than I paid for them - so you can have a closer look at them and potentially buy one.
A white skeleton with laser eyes in a futuristic city. Starting price: 2.5 BCH.
A Draiquilla with horns in a futuristic city at nighttime. Starting price: 4.2 BCH.
And finally a red devil with BCH logos as a background. Fixed price: 15 BCH.
While I absolutely love the artwork of the first two NFTs, the third one is the most special.
This third NFT was offered yesterday for one hour only - and for a fraction of the market value. And I relisted it after buying with a small profit - but also with a heavy, heavy discount on the market value.
The BCH logo background is the most exclusive of any Tropical NFTs. And if you take a look at the asking prices for comparable devils, you will see that they don't start below 100 BCH.
The staking power will be adjusted accordingly. 💪
Here are the other devils with BCH backgrounds which are currently listed on Oasis.
Compared to these prices, my asking price of 15 BCH is a bargain!
I know, I know. The Daiqui Dudes are not the most affordable NFTs on SmartBCH. I do believe they are among the best and well worth the investment, but if you want to have a similar experience with less portfolio exposure, have a look at the Tropical Gulls. You can find them listed for as little as 0.3 BCH.
Was I being silly spending so much money on Tropical NFTs?
Or did I buy some bargains that will appreciate in price while giving me a stream of passive income?
The future will tell, but I would like to hear your opinions.
Welcome in the Metaverse
Woah, That's a high risk investment! Although, NFT staking is really worth it in the end with the full efforts of the dev and his team. 👌
If you want, you could also check out some of the NFTs in the oasis like Cattos NFT, Cats.cash, etc. This one is only worth 0.5 bch but a good one. Check: https://oasis.cash/token/0x9F6466C0ffe9245d994C18c8B0575Af22a5AeEd5/1467
If you've read Cattos' roadmap they're really interesting. 😁 Better to diversify your eggs rather than putting it all in just one basket
Holly Molly!!! Man, 20 BCH 😱. I mean 🤔 that's cool. Hope they got more value in the future.
Hehehe buddy i will spend my life with this 20BCH
For me, NFTs are too risky. I wouldn't be sure if I could sell them if I needed 20 BCH again. I have bought some NFT's on puffers.cash, but I considered it as a donation and not an investment.
Best of luck, you are a whale! I like the second one from your NFTs. they are powerful!
20BCH is massive! Welp, I believe you can prosper on that! That 20BCH will surely double, or even triple soon!
I could only imagine having that much of a BCH. My 2BCH are shaking! 😂
Whoaa 20 BCH! Well if you strongly believe on it the it is worth the risk, best of luck on your NFT'S
I rather trade the 20 bch 🤣
That investment worked out quite well. 6.5 BCH profit for selling one NFT in one day. 😅
Haha, no silly at all! I believe you made a great decision and I would do exactly the same if I had 20BCH laying around in my Metamask 😍
gosh, when i looked at your account and scrolled down i read this!! and see how bold you are with the current gamble to buy NFT. for me this is a very high price, according to my capacity. but you see it and start with a strong mentality, I have to follow you in this community. my struggle on smartbch is still early so I still need references. amazing my friend gave appreciation.