Quote:
Originally Posted by wu is me
Your reasoning capabilities are child like...
Real world economic models are in fact, purely abstractions that much Less accurately represent the way the real world economics than a market that is much more controlled and variable free like the GW economy.
You'll find many economic theories started off as a simple thought experiment based on a set of assumptions.
The way you prove that a theory isn't an accurate proxy for a given economy is by checking the assumptions of the theory, and comparing them to the real economy to find out how true they indeed are.
Just saying
is gonna get you nowhere cos basically your just giving a child-like"
"
Contradiction.
But you'll find that most basic supply demand models fit the guild wars model, and also, Most if not all definitions of 'MONEY' will categorise Z-keys as Cash. Google 'economic definition of currency' or something on those lines and it'll prolly get you a result.
God.. I feel like the guy in monty pythons who pays for a contradiction, and I'm NOT getting my money's worth, goodbye! :P
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heh, calling me childlike. alrighty then, i'll ONCE AGAIN illustrate my theory, JUST so that MAYBE it will sink into your thick skulls.
-GW economy is simple: it is based on a hardwired system, which directly dictates how much gold is created. it also features specific gold sinks which completely destroys gold at a fairly constant pace
-unlike a real economy, gold sitting in storage do not grow. it should be very obvious that the zaishen chest does not pay interest, and also means this gold is static: there are no banks reinvesting that gold elsewhere. this means, that while gold has been accumulating over the three years of GW's existance, only a tiny portion of it has been actively traded. drawing some rough numbers, this means that, if there is 1 billion gold in the system, only about 15 million gold is actually being traded around. the rest is sitting in storage.
-expanding from above, this also means that gold is only significantly injected into the economy when someone actually intends to buy something with it. for instance, i have 600k gold in storage. if i have no intention of buying anything, that gold effectively does not exist in the market. however, if i decide to buy a voltaic spear, that gold instantly becomes part of the market, because it is now being actively traded.
-this also works in reverse: a rare item is worth very little (around 400g at most) in the game engine. it's better to think of them as cheques waiting to be cashed in than the actual gold themselves. if i have a rare item, such as a voltaic spear or obsidian edge, and it is just sitting in my storage, its value and impact on the market is zero. but as soon as i take it out and intend to sell it, it becomes the 100k+300e, or whatever those things fetch now these days.
-and just like a rare item, a zkey is worth practically nothing according to the game engine (this is quite opposite of the ecto, whose market value and actual value according to the game engine are always fairly close). zkeys function the same as rare items in GW: they are cheques that facilitate the exchange of gold. the overall economy does not change after the trade.
given all of the above, here is the result if a lot of zkeys are distributed into the community:
-a lot gold will be transferred (zkeys, after all, have a title attached to it)
-very little gold is generated
the end result of a ton of zkeys put into the game is a redistribution of wealth. that, i believe, cannot be proven otherwise. therefore, the distribution of zkeys into accounts have no effect on the overall economy; it does change the demographic of the market however. this has generally resulted in a lot more people with 300k-600k gold, and also resulted in a sudden spike in the available gold in the economy. after all, the first thing anyone would do if receiving a large chunk of money is to buy something nice with it. this, and really only this, is the cause of the rising prices in the mid-high value market.
once that gold is spent, or saved to storage for later use, the available gold will drop down again, and prices will logically go down with it.
now to the topic of people hoarding accounts for more zkeys:
-remember what i said about zkeys merely drawing gold out of storage? well, that's where the gold is coming from. the zkeys, once again, redistributes the available gold. though this time, that gold goes from a number of players to one player.
-since the available gold in the game still does not change, in the grand scheme of things, it doesn't change the economy one bit. after all, we've gone from a rather small number of accounts holding most of the stored gold to.... well, a rather small number of accounts holding most of the stored gold. the end result is roughly the same as the initial conditions, except the gold are now in different storages.
now, some of you may consider this to be unfair. personally i don't. after all, the end result is more or less the same as the initial conditions, just with different people holding onto the majority of stored gold. and let's face it, this trend is not going to continue. zkey prices are sinking rapidly back to the 2k they were going for before, and the payout for investing into a ton of accounts is diminishing as a result. it will eventually come to the point where zkeys won't become the hot sell, and those with a lot of accounts will find that they can no longer move those keys. we are currently sitting at potentially the last monthly payout, because april will be the last month where a unique tonic is handed out. the next monthly handout will move significantly less gold than this month.
so in conclusion, the THX does not change much of anything. if anything else, this suddenly reshuffling of storage accounts have done much to revive the economy. items move so much faster than before, and it is now quite rare to have to spam for hours to move a certain item. an economy is only dead when it becomes impossible to move items, and GW's economy is nowhere close to that.