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NEWSFLASH: All Econ Doomsayers Read

Magnum Serpentine
Registered User
Join date: 20 Nov 2003
Posts: 1,811
01-11-2005 07:41
From: Alby Yellowknife
This is the reason LL needs to make these changes... Here is a perfect example elsewhere of what could happen to SL if Hiro and his Bandwagon of Protesters win this debate.


Inflation threatens EverQuest economy
http://news.bbc.co.uk/2/hi/technology/2345933.stm


The EverQuest economy is under attack

Real life and online fantasy worlds have at least one thing in common: economics.
The company behind the online fantasy game EverQuest has started punishing players who have found a way to bend the game's rules and almost literally make money.

The crackdown has happened because the huge amounts of virtual cash that people were pumping into the game world were threatening to bring the EverQuest economy to its knees.

If left unchecked the influx of cash could have prompted hyperinflation and made it impossible for beginning players to get on in the game world.

Cash pile

In most respects EverQuest is utterly unlike real life as it features warriors, spell-slinging sorcerors and magical beasts of every hue, temperament and size.

But like the real world many of the characters that inhabit the world pursue a profession at the same time as they venture out on heroic quests looking for riches, artefacts or monsters.

As the characters get better at their chosen profession, be it tailor, blacksmith or jeweller, they become capable of creating ever more intricate and powerful items that can be used or sold in the game world.

Typically the time needed by a player to substantially improve the professional expertise of their EverQuest character and to make these powerful items is so great, that it causes little problem in the markets of the game world.

But some people have discovered a very easy way to carry out these time-consuming tasks, and in the process, unbalance the EverQuest economy.


Use real money to buy fantasy cash

In EverQuest, as in many other programs it is possible to automate common or repetitive tasks using a small program called a macro.

In Microsoft's popular Word program many people create their own macros to search through documents and correct spelling mistakes or to add addresses to letters.

But some EverQuest players found a combination of profession, skill level and macro that turns small cash piles into slightly larger ones.

By running the macro countless times they found it was possible to generate large amounts of money.

Some people even set up computers that did nothing but run the macro time and time again.

Once a player created a large pile of cash they then sold it for real money on the many auction boards and marketplaces, such as PlayerAuctions, that have sprung up.

Recent estimates put the amount of platinum pieces available to buy on just one EverQuest server at more than 3million.

The exchange rate of game money to real money is not very good, 100,000 platinum pieces sells for about $350, but it was enough to tempt many people to try it.

Now Verant, the company behind EverQuest, has started cracking down on people that use the money-making macro and is suspending accounts and confiscating items from people it catches exploiting the loophole.



The Voice of the Vocal Minority I see.

I think you need to just look at There and see the future Linden Labs is paving for itsself if they go through these stupid and insane changes.
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Blake Rockwell
Fun Businesses
Join date: 31 Oct 2004
Posts: 1,606
01-11-2005 07:44
Everquest simply needs to raise it's currency rewards/loot items in correlation to the market; one of the highest things to purchase are Horses unless you are a Paladin. They probably don't want and influx of horse buyers for reasons of lag. They also hinder the Market by making the merchant have to stay in his or her room to sell on the market; however, they do that because they do not want items to be so readilly available as no one would go out to hunt for items and adventure. I do not agree. They are stifling the economy; I think Crafters should be able to make better items than what is dropped and they need it balanced to wear rare drops aren't too rare. It's all a balancing act.
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Alby Yellowknife
Sic Semper Tyrannis
Join date: 5 Jun 2004
Posts: 1,148
01-11-2005 07:47
From: Magnum Serpentine
The Voice of the Vocal Minority I see.

I think you need to just look at There and see the future Linden Labs is paving for itsself if they go through these stupid and insane changes.




There was the poster child of Mudflation. If LL doesn't begin with these changes, SL will become just like There...

If everybody was rich, you've effective made everybody poor. Inflation's dead end is poverty by giving people an endless supply of money. LL is trying to reign in the cash supply and preserve the valuation of everything in SL.. But these concepts are just too much rocket science for the common player to grasp. As such, they rally around folks who proclaim doom and gloom...
Blake Rockwell
Fun Businesses
Join date: 31 Oct 2004
Posts: 1,606
01-11-2005 07:50
From: Alby Yellowknife
There was the poster child of Mudflation. If LL doesn't begin with these changes, SL will become just like There...

If everybody was rich, you've effective made everybody poor. Inflation's dead end is poverty by giving people an endless supply of money. LL is trying to reign in the cash supply and preserve the valuation of everything in SL.. But these concepts are just too much rocket science for the common player to grasp. As such, they rally around folks who proclaim doom and gloom...


How much money are you going to make on the currency exchange by hyping your Propaganda Alby? :eek:
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Alby Yellowknife
Sic Semper Tyrannis
Join date: 5 Jun 2004
Posts: 1,148
01-11-2005 07:53
From: Blake Rockwell
How much money are you going to make on the currency exchange by hyping your Propaganda Alby? :eek:





Boatloads... And I don't need propaganda to make it happen. LL cutting down the currency float will do all the work.
Blake Rockwell
Fun Businesses
Join date: 31 Oct 2004
Posts: 1,606
01-11-2005 07:57
From: Alby Yellowknife
Boatloads... And I don't need propaganda to make it happen. LL cutting down the currency float will do all the work.


I think I need to learn currency exchange quickly! lol.
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Alby Yellowknife
Sic Semper Tyrannis
Join date: 5 Jun 2004
Posts: 1,148
01-11-2005 08:04
From: Blake Rockwell
I think I need to learn currency exchange quickly! lol.




Easy Stuff.. About L$160,000,000 Linden Dollars exist in all of SL. LL's latest actions will have the effect of reducing that number down from L$160/million. The reduction of L$ Supply will make it so that demand for L$ will exceed supply. As such, valuation of L$ will increase until an equalibrium is found.

The short answer is, buy L$ now for cheap and wait for the lack of L$ in SL to cause prices to go up. Cash out at the top and profit. Just about 6/months ago the Linden Dollar had a valuation of around L$1000=US$6.00.
Artillo Fredericks
Friendly Orange Demon
Join date: 1 Jun 2004
Posts: 1,327
01-11-2005 09:55
WAAA MF WAAAAA j/k

"I am simply blown away after reading this post in its entirety."
/laughs

who really cares? Who is actually in this world to collect dwell, ratings, and stipends?
I mean COME ON people get real!!!
LOL Is that why we are all really here?
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"I, for one, am thouroughly entertained by the mass freakout." - Nephilaine Protagonist

--== www.artillodesign.com ==--
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