bCircles — The Actual Digital Real Estate Properties

PI - Protocol
4 min readMay 26, 2022

Forget about the Metaverse hype at the moment because as far as I know, you are not able to rent out your property on the Metaverse platforms to earn a rental income.

bCircles are the actual digital real estate properties in crypto and DeFi. What made me say this?

A bCircle is an asset. An asset is simply defined as something that puts money in your pockets. You earn passive income (PIP tokens) as staking rewards when you stake your bCircles.

Unlike traditional real estate investments, you do not have to look for tenants to rent out to, chase tenants for monthly rentals, and maintain your property or properties. All you need to do is to claim your rewards every month and decide if you want to compound to buy more bCircles or to cash out.

PIP tokens may not be as stable as a stablecoin but because bCircles represent locked liquidity, the price is a lot less volatile than the other DeFi projects’ tokens. Furthermore, the Pi Protocol team is always looking for new ways to incorporate the PIP token in different utilities.

It is inevitable that the PIP token price will increase given enough time because of its deflationary nature, price floor sweeper, solid fundamentals, and the increased future usage of PIP tokens in the Pi Protocol ecosystem.

In traditional real estate investments, you are advised to have a holding period of at least 5 years to see any decent returns and capital appreciation. You do not need that much on Pi Protocol but the minimum investment staking period here should be at least 6 months to 1 year of compounding before you decide to cash out 50% or as much as you want.

It is important for you to have at least 6 months to 1 year of savings before deciding to invest and only invest with the money that you are willing to lose.

Check out the following spreadsheet to see this compounding and cashing out 50% strategy:

https://docs.google.com/spreadsheets/d/1pq4tvUC0vo6B5exhN5kTvU0m8mW-166p025GSXIr4xI

If you know how to use Google Sheets or Microsoft Excel, you can download a copy and do your own financial planning to make an informed and educated decision that is suitable for your current financial situation and stability.

Based on the $5,000 and Monthly APR 8% example, compound for 6 months and only cash out 50% for the next 6 months:

  • Capital Appreciation: 93.07% (Almost 1X Net Return)
  • Total Cash Out (Only 50%): $2,010 (Almost 0.5X Net Return)

Compound for a year and only cash out 50% for the next whole year:

  • Capital Appreciation: 133.16% (1.33X Net Return)
  • Total Cash Out (Only 50%): $7,227 (1.44X Net Return)

Do you know how much you need to invest to get $7,227 a year in rental income?

Let’s just assume that the annual gross rental yield is 7%. You will need to invest in a $103,242 property and hope to rent it out for one whole year to earn that and it is not even in net profit. On Pi Protocol, you can earn this $7,227 in net profit without hardly lifting a finger assuming that the PIP token price, bCircle price, and monthly APR% remain constant.

Similar to traditional real estate properties, you can also sell off your bCircles by listing them on the Pi Protocol open marketplace at a slightly discounted rate and they are likely easier to sell than physical properties.

Another thing for you to keep in mind is the price floor sweeper and let’s assume that the PIP token price goes up by 2 times after sweeping the floor price, your $7,227 annual net return will become $14,454.

We (Pi Protocol) encourage you to cash out or take profit when you need money because there is a 4.5% buy and sell transaction and 2% from this 4.5% will be allocated as staking rewards to the bCircle stakers, making it an infinite profitable loop that benefits the project and the bCircle stakers.

Legal Disclaimer:

The information published above is not intended to be and does not constitute financial advice, investment advice, trading advice, or any other advice or recommendation of any sort offered or endorsed by Pi Protocol. It was written based on the author’s opinion.

Prior to making any investment or entering into any transaction, you should carefully consider your financial situation and consult your financial advisor(s) in order to understand the risks involved and ensure the suitability for you of any investment or transaction. Any information or opinion provided herein is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be unlawful. All expressions of opinions are subject to change without notice.

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