THE ECONOMICS OF CROPBYTES SERIES — ASSET PROFITABILITY
Cropbytes’ Play-To-Earn Farming Game offers an array of assets that you can choose from in order to kickstart your Crypto Farm and earn. If you are just starting to dip your toes in the game, the new players’ best route is to buy any or all of the available Starter Packs as they offer the cheapest way to kickstart your farm. The only downside of these Starter Packs at the moment, is you can’t able to sell or trade these assets to the Market as all Starter Pack Items are still not tradable — for now. That might change soon as stated in the roadmap but for the meantime, let’s still stick to that downside at the moment.
NOT ALL ASSETS ARE EQUAL
Remember my last blog about Mining and Profitability? more specifically, about the Proof-of-Stake Mining — The more you stake, the more you earn. That is true. As I stated before, some of the Top-of-the-Line Assets, refer to the picture above for example, offers high and steady yield returns when you have those assets.
But when it comes to the low tier assets, to be more specific, assets that have current market prices of 1,000 CBX and below doesn’t really always necessarily follow the “The more you stake, the more you earn” motto. Some of these assets’ profitability are dictated by the demands and minting conversion of their yield. You can’t just blindly buy 1 kind of asset in many quantities and expecting a good return. Knowing certain Asset’s profitability is one of the key in growing your crypto farm.
Below are some of the Assets’ and Animal Weekly Profitability projections at the moment of this posting
As you can see, some Assets are profitable and some are horribly not so profitable.
To know more about the weekly assets profitability check and subscribe my You tube channel Simplegamemer, and hit that notification bell so that you will be updated with the latest videos
https://www.youtube.com/channel/UC3ZyNCJrTNk04kJPtu7dQ5w
If you are a google spreadsheet nerd, you can check my Cropbytes Profit and Supplies Calculator Google Spreadsheet v 2.3. Download link is available on my VLOG number 14 video on my You Tube Channel
Going back to topic, these are some factors that affect Assets’ Profitability
FACTORS THAT AFFECT ASSETS’ PROFITABILITY
- WHEN DEMAND EXCEEDS SUPPLY, PRICES GO UP and WHEN SUPPLY EXCEEDS DEMAND, PRICES GO DOWN
Just like in real economy, when the Demand exceeds the supply, prices go up.
One perfect example is MUD, which is produces 4 truffles every two days. In the hay day of launching of Breed Feed Making last year the value of Mud and its extract Truffles skyrocketed due mainly two reasons —One, is the high demand because of superhero breeding and some farmers are actually joining the fray in making Breed Feed for profit. And two, the minimal asset count of Truffle producing assets means the production can’t cope up with the demand which make Mud and Sparky the most profitable Animal assets in the game for many months.
Another example, in other way around, where supply overtakes demand is the Fruit Feed (FRF). Last year, it’s equivalent price range is 2–3 TRX per unit or if converted to CBX that would be also 2–3 CBX. Eventually at time passed, the supply overtakes demand mainly because of the inclusion of Apple Trees in Starter Packs. Its price is now at measly at 0.068 CBX. This is bad for Fruit Farmers but surprisingly good for the Animals Feeders, as this makes Sunday Fruit Feeding the most profitable day to feed your Animals.
2. MINING DIFFICULTY
Low mining difficulty increases the reward when you convert extracts to mint CBX. To simply put it, the lower the difficulty means less extracts are required to mint 1 CBX. The higher the difficulty mean more extracts are required to mint 1 CBX.
Market prices of extracts tend to follow the equivalent minting conversion. In a below 1 difficulty level, prices are steadily aligned with the equivalent minting conversion for that week
For example, the highest difficulty ever was recorded last January 2022 on the 2nd Week of CBX Conversion set at 1409.603. You can look at the amount of extracts needed that time to mint or create 1 CBX. Yikes.
3. UPCOMING HINTS ON NEW FEATURES
Roadmaps often do not make the prices volatile, but announcements about soon to be implemented features can sure shake-up the market a bit.
One perfect example is the recent tweet of hint from our CEO of Cropbytes — Mr. Sandeep Kumar on twitter, about the upcoming asset mining with emphasis on Pro-Asset Animals. This a hint that Pro-Assets Extracts will be used in Asset Mining and this triggered a sudden jump of value of Carrot Feeds in the Exchange.
Some asset and extracts prices tend to go up when reliable information are relayed thru Official Social Media Channels about some hints on upcoming features, triggering a FOMO (Fear of Missing Out) scenario.
4. EXTRACTS THAT DO NOT HAVE USE CASES
Extract that do not have use cases, other than converting them to Cropbytes Token tends to have prices that is just above or near within the equivalent minting conversion price. Some of these extracts are at the moment are Fur, Feather, Horse Hair, Wool. This might change soon, as the roadmap dictates all extracts will have use cases soon so that’s an update we are all waiting
That’s it guys and I hope you enjoyed this Cropbytes Blog series about The Economics of Cropbytes and see you on my next one
Happy Farming Everyone!