Should you invest in MANA or LAND? What’s the best strategy? | Explaining the Relationship.
Posted On July 18, 2018
If you’re interested in Decentraland, then I’m sure you would have been confused on whether it’s better to invest in the MANA token or buy LAND.
What has better future prospects and how do the two increase or decrease in value?
After following the Decentraland market for 6 months, I’ve come across some realizations I’d like to share.
Benefits of Investing in MANA
MANA is More Liquid then Land
A mistake many people make when first investing in crypto-collectables is that they invest a little more than they can afford. When times get tough and they need to withdraw their investment they realize that their money is stuck unless they price their collectable much cheaper than market price.
If they want a quick sale and to withdraw their money they gotta sell it at a bargain price. For this reason, it’s best to keep a healthy balanced invest amongst the two. Land and MANA. So if their is a need for fiat to pay the bills or anything else that comes up, you don’t need to sacrifice your LAND to do so.
MANA is Expected to be used as the main in Game Currency
Just like Lindel Dollars in Secondlife, MANA is expected to be the main currency to be used in the Decentraland world. Whether it be to pay for rent, buy land, pay for experience, any other crypto-collectable or anything else.
As people begin to explore the world on a regular basis, they will need to store a good amount of MANA in their wallets to continue buying and paying for things. This means there will be a lot of MANA ‘taken out of circulation’ because they’ll be stored in peoples wallets to use in the world.
The more MANA stored in peoples wallets, the more the price will increase as there’s less supply. That’s just how token prices work.
MANA Gets Burned During Auctions
In the first Auction, ALL the MANA spent to buy lands were burnt. That’s right, all 161 MILLION MANA tokens spent on Land was taken out of circulation. That’s 16% of the whole circulation which amounted to $28M USD at the time of burning.
That’s a lot of money!
There has been talks of another auction where even more MANA will be collected and burned which should increase the token value once again.
Not to mention if in game payments and fees are also opted to get burnt, this will further increase the value.
It’s in The Owners of Decentraland’s Best Interest to increase the value of MANA
Just like every ICO or company out there, the creators of the business benefit from the share price increasing because they’ve allotted a certain amount to themselves as outlined in the white paper.
So, it makes sense to trust in the MANA token because that’s what will be pushed.
People buy it to invest in Land
The obvious point. People need MANA to invest in LAND. As Land increases in value, then more MANA will be needed to be bought, filling up the buy orders.
As long as people want Land, MANA should have a good future.
Investing in MANA means investing in the Decentraland Project
Just like every other project on Coinmarketcap, MANA is one of the many tokens that will benefit from the rise in crypto-economy.
As BTC continues to grow, so will MANA. Being tied to BTC is a blessing and curse but for the most part it means a healthy interest in the Decentraland project.
As the MANA token grows, it will gain more visibility attracting new investors who will want to add the token to the portfolio. They may not be able to afford Land but have the option to buy and hodl tokens which I’m sure many will take.
If MANA token increases you can buy lands people Dump Their Lands
As MANA increases, there may be more supply as people want to cash out on this.
People need fiat to run their every day life. You can’t escape it…yet.
I’m pretty confident that as MANA increases in value, Land prices will drop. Or at least the bottom will drop. People will be happy selling their lands for 5,000, 4,000 or even 2,000 if MANA rises over $1.
It’s still the early days. The world isn’t open so we don’t know exactly what monetization opportunities will be there. We do know that there will be options to rent your land which will be huge as companies start to move in and set up base they will increase the value of certain areas.
This unexplored and fairly hard to predict concept can be very fruitful for land owners especially when you take into consideration you can build at least 20 metres high. That’s a lot of appartments you can rent!
Double your chances of increase investment. Whether it’s MANA or LAND
One of the biggest reasons I bought land as soon as I found out about this project.
Whether it’s Land or MANA that goes up in value, you will make money. But the real value here is in the multiples.
If Land Doubles and so does MANA, then your investment quadruples!
Having LAND means that you will win whether Mana goes up OR Land goes up because your overall investment will grow.
LAND becomes more scarce as prices will rise in time inevitably
Land is a limited commodity and so will inevitably become more expensive.
As more temporary investors move out of Decentraland and more tech savvy, highly excited developers and content creators move in who are proud to build and keep, lands will become less and less available.
New dynamic so investment increase is unknown with 2 variables
Normal Real Estate has mostly one variable to the growth formula.
Land Prices in a stable currency.
But here, we’re dealing with a currency that fluctuates. Not just 1-2% daily but in some cases 30 or even 100%!
With this in mind, it’s hard to determine how the market will react to sudden increases or decreases in MANA token value. We don’t know if a huge increase in MANA will have a negative impact in land prices or vice versa.
But it’s a new, exciting dynamic where anything can happen!
You can build whatever you Want
One of the coolest concept of Decentraland is that you can build anything you want on your virtual parcel of land. This leaves a lot to the imagination and a wealth of opportunity awaits those that are creative.
Think of the 1000’s of people no deviant art that can now make and virtually display their art pieces. And make sales too!
Or those, that want to get together with all their international friends and go to a theme park on a roller coaster.
The concept of utilizing the game mechanics to do what it was made for is exciting and having at least one parcel of land so you can explore this avenue might become a luxury in the future especially considering lands are limited.
There is no right or wrong answer to this but I think everyone would agree with me if I were to say go all in on either land or MANA.
A good strategy i my opinion and experience is to go 50-50. In fact, I lean a little more on the side of MANA just because I know I can cash out whenever I want and have a strong feeling Decentraland will blow up!
If it does then MANA token will moon and I can cash out big time.
My personal strategy is to have around 70% invested in MANA and the rest in Land. Although I probably won’t become a content creator within the world, (unless there’s money to be made), it’s still exciting feeling that you might own a piece of a world that can become insanely popular.