Okay, let‘s talk about money and investing in digital goods. If you are familiar with digital currencies and crypto in general, this article might not be for you. To put it bluntly: Earth 2 is nowhere near as good of an investment as doubling down on Bitcoin, at this point in time. However, as a long term investment, it might actually have an edge over its crypto currency brothers and sisters. And there is a good reason for that.
Virtual goods have become commodities in most games. We have all become accustomed to buying upgrades for our avatars or new pokeballs. Yet, most virtual goods only serve a short term means to an end; they help you catch a certain pokémon, gain an upgrade in gear or buy something that only has a personal value to us (cloths/outfits).
In Earth 2, this is a little different. The virtual good that you can purchase on the platform, is an actual piece of land. Tiles are 10×10 meter squared pieces of planet earth that can be bought with E$s. You can buy a small piece of land for somewhere between 0.50-1.50 USD in some locations; especially those that are not in the middle of larger cities.
However, some pieces of land in more developed and sought after cities, are traded at 10-30 USD per tile.
What determines the price of a tile
The price of a piece of virtual land on Earth 2 is determined by:
- The number of available tiles in a region
- The number of active trades in that same region
- The amount of available tiles in the country
- And the market value at which tiles are traded (Marketplace)
I have not „cracked the code“ on the exact formula that determines the price of land. However, it is something I am looking into. If you are working on the exact mathematical formula that determines the tile price, too, let me know. Let‘s try and get to the bottom of this.
Is it too late to invest in Earth 2 tiles
Earth 2 is more than a mere game. The developers behind Earth 2 aim to create a virtual second earth, but with its own ecosystem and dynamics. The beauty of the concept is that it is based on the actual world we live on. Every tiny piece of land on our planet is up for sale.
Whereas we do not know which part of the Earth 2 world will be most valuable, we do know that all of the earth count. In the second part of the roll out, „resources“ will be deployed; potentially at random, these resources could change the dynamics of the game substantially.
Imagine, you buy a piece of land in the desert and gold or oil is found on your land. Whoever controls these resources, might have a big advantage in the game, going forward. How do you want to play the game? How do you think it is going to develop?
Invest now, or wait
It‘s quite simple really, when you (as I do) believe that Earth 2 is going to be a big thing, then get on board now. Land will only get more expensive, the more is sold. Besides, you will be able to reap the benefits of owning the land (in form of taxes) when you have it. This will give you a natural return on investment, without doing a thing.
Yet, at the end of the day you will have to be a good trader to make some money on the platform. It is fun to own one tile (maybe your own house/apartment), but that is not going to get you very far. As long as there are sufficient tiles available, it is highly unlikely that someone will want to purchase your single tile.
My advice: invest that what you can afford to lose. Buy land that has the potential to become important in the game. I think that areas with a high population density and lots of advertizing opportunities, have the highest potential. Thus, it makes sense to look at countries with high population densities and available tiles in Class 1 or 2. These two classes are the most lucrative, as they give you the highest amount of taxes. Therefore it might make sense to invest in countries in Asia, or Africa.
But, even countries like Switzerland and the Netherlands are still highly undervalued compared to their German, French, UK and USA counterparts. At only a fraction of the price, tiles in mainland Europe are still very affordable.
Crypto or Earth 2
It is not a question of whether or not you should invest in Earth 2 or crypto currency. Both investments are still highly volatile and it‘s early days. If you are in it for the money, invest your hard earned cash in crypto. It is easier to trade cryptocurrencies (such as Bitcoin), and faster.
However, one of the positive things about https://www.earth2.io is that you will have a virtual good to hang on to. The vibrant community of players and traders will keep the platform going, especially as the next phases are about to begin. It could take some time before we see what the real benefits of owning land on Earth 2 are, but is certainly is exciting!
I don‘t think you should see the game as an investment, though. It is more of a support for the future of the platform. It has the potential to become something more substantial than it is today. And I hope the developers will continue to use the early stage investments wisely in the development of the second and third phase.
Don‘t invest any money you cannot afford to lose. If you can, join the party and have fun seeing your property values rise and rise in the months to come.
Also published on Medium.