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Jayne CyberKnight
Planet Buffy
0
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Posted - 2011.11.13 05:45:00 -
[121] - Quote
Plex does devalue isk. Before plex, you had to earn isk in game. You needed a profession and that required skills. How long did it take a noob to make 1 billion back then ? Now a new player can just buy a couple of plex and have a billion on day 1. So plex devalues isk because it makes it so eazy to obtain. On average players have more/spend more isk. More faction battleships and T3s.
Plex does not deflate isk because it does not appear to have changed prices.
There was mention of no gold in eve. Perhaps plex is the closest. Gold can be bought in rl to hedge against inflation. Plex can be bought to hedge against increasing devaluation of isk.
I suspect botting is playing a role in the high isk value of plex. Given CCPs appalling response to it, I guess we will never know. |
Selinate
117
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Posted - 2011.11.13 06:59:00 -
[122] - Quote
FYI, plex could manage to devalue isk also, since it causes such large volumes of isk to trade hands between more characters, it therefor could cause higher rates of buying *stuff*, which could drive prices up and therefore decrease the overall isk value.
Keep in mind that value of a currency is also dependent on the confidence the users have in that currency.... |
Adunh Slavy
Ammatar Trade Syndicate
82
|
Posted - 2011.11.13 13:51:00 -
[123] - Quote
Selinate wrote:FYI, plex could manage to devalue isk also, since it causes such large volumes of isk to trade hands between more characters, it therefor could cause higher rates of buying *stuff*, which could drive prices up and therefore decrease the overall isk value.
Keep in mind that value of a currency is also dependent on the confidence the users have in that currency....
The word you're looking for is velocity.
http://en.wikipedia.org/wiki/Velocity_of_money |
The Antiquarian
Imperial Academy
Amarr Empire
97
|
Posted - 2011.11.13 14:08:00 -
[124] - Quote
Jayne CyberKnight wrote:Plex does devalue isk. Before plex, you had to earn isk in game. You needed a profession and that required skills. How long did it take a noob to make 1 billion back then ? Now a new player can just buy a couple of plex and have a billion on day 1. So plex devalues isk because it makes it so eazy to obtain. On average players have more/spend more isk. More faction battleships and T3s.
Plex does not deflate isk because it does not appear to have changed prices.
There was mention of no gold in eve. Perhaps plex is the closest. Gold can be bought in rl to hedge against inflation. Plex can be bought to hedge against increasing devaluation of isk.
I suspect botting is playing a role in the high isk value of plex. Given CCPs appalling response to it, I guess we will never know.
I apologize for my blunt comment, but I believe that you do not understand the concept of devaluation. PLEX merely changes ownership of ISK from one person to another. It does not generate a single additional ISK nor replaces or substitutes ISK as another tool of trade.
You claim that PLEX is a devil's spawn. If there is an ample supply of PLEX on the market, wouldn't it be a win-win scenario for everyone? 1) Those who have real money benefits by replacing his hard earned sweat and toil for PLEXs 2) More PLEXs in the circulation = cheaper PLEXs. Those who can't afford to pay the game with real money wins.
If you are worried about the devaluation of ISK, PLEX is not the source. |
Probably Smashed
GoonWaffe
Goonswarm Federation
7
|
Posted - 2011.11.13 14:29:00 -
[125] - Quote
Didn't bother reading the whole thread so I'm probably rehashing somebody's points, but the EVE economy is a closed economy that still has isk being generated out of thin air (bounties, missions, etc) so it is inevitable that the ISK would devalue due to constant cash being printed. |
TornSoul
BIG
Gentlemen's Agreement
8
|
Posted - 2011.11.13 15:41:00 -
[126] - Quote
It also has ISK *disappearing* into thin air... (BPOs, taxes etc etc etc)
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Barakach
R-ISK
EVE Trade Consortium
3
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Posted - 2011.11.13 17:36:00 -
[127] - Quote
Selinate wrote:FYI, plex could manage to devalue isk also, since it causes such large volumes of isk to trade hands between more characters, it therefor could cause higher rates of buying *stuff*, which could drive prices up and therefore decrease the overall isk value.
Keep in mind that value of a currency is also dependent on the confidence the users have in that currency....
" it therefor could cause higher rates of buying *stuff*, which could drive prices up"
I never knew high demand caused inflation.
I do agree that if you had two people who purchased the same things, that if one person purchased PLEX for ISK, they could drive up the cost for the other person because they created extra demand for certain items. But you forget that inflation is the overall change of the value of money for EVERYONE.
The people creating the items in question will be making more money. Margins will increase, the market will see the margin and more people will move in to fill the gap. More people creating the same item will cause its value to start to drop again, more demand for minerals. Mineral value goes up, prices start to go back up. More people see mining as a way for making decent money again, more competition for mining, value goes back down.
It's a lovely feedback system that levels itself out.
In the end, that person buying plex has caused more "jobs" for mining and manufacturing and the prices level back out to about where they were.
It doesn't cause inflation, it creates demand. |
Jayne CyberKnight
Planet Buffy
0
|
Posted - 2011.11.14 07:20:00 -
[128] - Quote
The Antiquarian wrote:Jayne CyberKnight wrote:Plex does devalue isk. Before plex, you had to earn isk in game. You needed a profession and that required skills. How long did it take a noob to make 1 billion back then ? Now a new player can just buy a couple of plex and have a billion on day 1. So plex devalues isk because it makes it so eazy to obtain. On average players have more/spend more isk. More faction battleships and T3s.
Plex does not deflate isk because it does not appear to have changed prices.
There was mention of no gold in eve. Perhaps plex is the closest. Gold can be bought in rl to hedge against inflation. Plex can be bought to hedge against increasing devaluation of isk.
I suspect botting is playing a role in the high isk value of plex. Given CCPs appalling response to it, I guess we will never know. I apologize for my blunt comment, but I believe that you do not understand the concept of devaluation. PLEX merely changes ownership of ISK from one person to another. It does not generate a single additional ISK nor replaces or substitutes ISK as another tool of trade. You claim that PLEX is a devil's spawn. If there is an ample supply of PLEX on the market, wouldn't it be a win-win scenario for everyone? 1) Those who have real money benefits by replacing his hard earned sweat and toil for PLEXs 2) More PLEXs in the circulation = cheaper PLEXs. Those who can't afford to pay the game with real money wins. If you are worried about the devaluation of ISK, PLEX is not the source.
For example, say you had 1 billion and that was enough for a carrier. A few years ago anyone that wanted a carrier had to earn the isk in game. I wasn't playing then but I suspect if you went to a corp with your carrier and said let me in that might have responded with 'Right this way Sir'. Now someone can obtain same carrier with about 2 plex. If plex rises to 1 billion isk then it costs US$15, 3 billion then US$5. Let say plex does get to 3 billion isk. Since carriers now cost US$5 they would be a lot more common. Now your carrier is not looking so impressive. There has been no inflation/deflation. Your 1 billion isk has not deflated. It has however had it's value reduced because isk has become easier to obtain.
Probably didn't do a better job of explaining my thinking that time but hope it helps. BTW I'm not for or against plex.
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