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Euro Depositor? Feeling the pinch?

LuisArkadov

LuisArkadov

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Chenghis LuisArkadov Pandoran
Lots has been said & discussed about the recent introduction of shrapnel & EP bp and their impact on the EU economy and player experience.

On a more personal (& somewhat selfish) level I see another elephant in the room though.

I was wondering how Euro depositors are coping with the fast devaluation of their currency and also how possible changes in euro depositor behavior is impacting the EU economy. (pun intended)

To elaborate: Some time beginning 2014 / end 2013 was kind of peak times for Euro deposits. At times I received in excess of 1400 peds for 100 Euros (That's from memory, don't quote me on dates). During most of 2014 I was still comfy with getting > 1200. Now I get just over 1000 peds. That downward trend doesn't show any signs of stopping or reversing.

So naturally I'm starting to feel the pinch and I cycle less ped through the economy before my depo has finally dried up. Having numbers of 1200 or 1300 ped per 100 EUR in memory I am now paying a perceived MU of 30%+ right at point of deposit. That is before having spent a single ped in game.

Chances are that throughout 2015 the exchange rate will drop to a point where I might get only 800 peds for 100 EUR.

I understand that the PED is pegged to the US$ and therefore any movement in US$/EUR exchange rate will impact the EUR/PED exchange rate.

Anyhow I start wondering if I should adjust my depo amounts, as frankly, I don't feel I get my money's worth. (...and no, I don't blame MA for that one)

How do you guys deal with the Euro situation? Have you lowered your regular depo or even increased it to get the PED amount you used to get for less Euros? Are you completely ignoring it?

On another related note. Assuming an unchanged amount of monthly Euro deposits accross the player base, do you think the lower PED amount exchanged and consequently cycled impacts the economy significantly?

Assuming (again) that 100.000 EUR are deposited every month and also consumed entirely every month then about a year ago that was worth around 1.3 million ped per month. Now it would be just over 1 million.

I'm only in the game since 2013 so I don't know much of the 'good old days'. Has there been a similarly big shift in currency exchange rates in the past and has it impacted the economy?
 
be thankful your not using Australian Dollars....

Currently getting about 750ped for $100 depo
Thats where it was back in '07-'08(I think) then we had a really good period during the major part of the GFC where the $AU had gained parity with the $US.

Those days are gone however and I suspect its gonna be the way it is or worse for some time to come.
 
lol, South African Rand is worse! for me to get 1000 PED I need to deposit 1,208 ZAR :eyecrazy:

And to think there was a time where the ZAR was stronger than USD, but that was very very long ago.
 
I see it as if I deposit 100e I will get ATLEAST 1000 ped, if I dont, I wont deposit. Anything above that (Such as 1400 ped for 100e) is just a bonus for me.

I have downscaled the deposits though - Mainly because I get shit returns ingame and dont wanna spend a lot to get a whole lot of nothing.

WC
 
Well on the opposite its very good for people who deposited shitloads of money and didn't burn it into the system but bought deeds or other money making estates. They see now their peds just grew in value and would profit just withdrawing their deposits.

However I feel also the pinch , if the euro fall below 1 usd I must scale down my deposits. The chances this happen are very high. What we see now is mainly just because the euro crisis with Greece , its not accounting yet the us economy that is doing well. Since oil is paid in dollar on the international market I expect the cheap fuel prices will soon start climbing again :( That's it for cheap fuel in Europe :/

Hehe maybe we should deposit now as much as we can or buy usa stocks before our currency is only good to make fire :)
 
Angle of view!

Some math:

Angle of view is german!
Deposited 1000 € last year and received 15000 PED for it (1€=1.5$)
Invested wisely and and played smart, so you still got your 15000 PED in your account
Euro goes down to 1 € = 1 $
Withraw your 15k PED = 1500 €
MA takes 5% withdraw fee = 75 € in this scenario
Total payout to your RL bank account is 1425 €
Damn 42,5% profit :D

Not that bad, isn´t it ?
Even with germany inflation rate you will buy a lot more for this 1425€ than you would have bought last year for your 1000 €
 
weimar_fire.jpg
 
Angle of view

Hi GoNi,
you must be a new Andre Kostolany :yay:

You,ve deposited more than that silly 1k and now can quit work because of 42,5 % profit! Don,t forget the !nomercy! taxman (Schäuble LOL).

KK only a few will make a real profit from that Eurodesaster!

Maybe a solution for us humble players is to buy our bullits at the webshop :cool:
GoNi said:
Angle of view!

Some math:

Angle of view is german!
Deposited 1000 € last year and received 15000 PED for it (1€=1.5$)
Invested wisely and and played smart, so you still got your 15000 PED in your account
Euro goes down to 1 € = 1 $
Withraw your 15k PED = 1500 €
MA takes 5% withdraw fee = 75 € in this scenario
Total payout to your RL bank account is 1425 €
Damn 42,5% profit :D

Not that bad, isn´t it ?
Even with germany inflation rate you will buy a lot more for this 1425€ than you would have bought last year for your 1000 €
Click to expand...
 
last year to get 3k euros in my account i need to withdraw 42k peds this year i just withdrawal 35k peds to get same amount. So is beeing positive to MA!
 
Deutsche Bank estimates that 1 $ is 0,85 Euro within 2017 ...my guess is they know why :laugh:
 
It will greatly reduce my deposits, too bad I am in the worst loot period ever... so I'm debating to sell everything and withdraw, probably the best option here.
 
With current situation in Greece, i think depositing atm is very good time, as USD will keep strenghtening against EUR, so if you Depo today 100EUR, in few months it will be worth 130 EUR. So right time to invest ingame atm.
 
whiteknut said:
With current situation in Greece, i think depositing atm is very good time, as USD will keep strenghtening against EUR, so if you Depo today 100EUR, in few months it will be worth 130 EUR. So right time to invest ingame atm.
Click to expand...

And lock your investment for minimum 3 month in pixels, brilliant.

Maybe simple invest into USD instead?
 
Currency speculations are well .... highly speculative :d

Just for the sake to exchange euro into usd I wouldn't recommend using EU. You can open an bank account running on a foreign currency. That's mostly used by stock trader , trading on foreign markets to save headache
with fees and exchange ratios while trading stocks but some banks offer foreign currency accounts without a depot attached. Currency speculations are a 2 edged sword the market is too big and unpredictable to say where the euro will stay in 6 months. If you go to invest all euros in usd and the euro raise up you will just burn your money.

Its not different from gambling

Edit :
Moving to a place with higher living standards is not hard if you live in Germany. Guess I should start learning Norwegian vocabulary or maybe exchange my cloths with a potato sack and move to Saudi Arabia ,)
 
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Money is subject to inflation and standard of living..

Example: same job/house/energy will cost/pay more somewhere with a higher standard of living, or inflation. Since the exchange rate of other currencies is based on the USD, previously attached to the gold standard, as the US economy increases, the rest of the world will suffer.. This is all thanks to the creation of the IMF followi the Great Depression in the United States..

Solution: deposit enough to last the rest of your EU career now, or move somewhere with a higher standard of living.

Things will only get worse for the rest of the world, while the U.S. Players will remain the same.. This obviously hurts MA because they receive less in USD from foreign currencies.. A loss which MA will struggle with..

Solution 2: MA changes currency over to the Euro, which means US players will get more for their money while Euro players remain constant.. Really it comes down to whether there are more US players than the rest of EU's player base.

Solution 3: all of EU player base moves tomorrow expensive city in the US And all prosper in EU
 
whiteknut said:
With current situation in Greece, i think depositing atm is very good time, as USD will keep strenghtening against EUR, so if you Depo today 100EUR, in few months it will be worth 130 EUR. So right time to invest ingame atm.
Click to expand...

I'm not sure the dollar can get so much stronger. At some point the dollar will be too strong and the strong dollar will start to hurt the US export, slowing down the US economy. Also, don't forget that US have problems of their own with governments-debts and budget-deficits. I think the stronger dollar is a bit temporary, just as the cheap oil.
 
Rocket192 said:
Things will only get worse for the rest of the world, while the U.S. Players will remain the same.. This obviously hurts MA because they receive less in USD from foreign currencies.. A loss which MA will struggle with..
Click to expand...

But MA pays their salaries and most of their cost in SEK and with a stronger dollar they earn more SEK/dollar, so they probably goes even on that.
 
billairboy said:
But MA pays their salaries and most of their cost in SEK and with a stronger dollar they earn more SEK/dollar, so they probably goes even on that.
Click to expand...

Regardless of what they pay it in euro depositors deposit in euros, not dollars..

Example: euro worth 10% less than dollar: 10,000 euros deposited = 9,000 dollars.. If the euro keeps decreasing in value to the USD, it doesn't mean euro depositors will start increasing their deposits to cover the difference. So MA gets less money from euro depositors.
 
Feel for Aussie depositors. Our $ is 0.7 USD. So we depo $130 to put $100 ingame, minus international transaction fees and minus MA fees. I think MA has to address this problem.
 
Few Scars said:
Feel for Aussie depositors. Our $ is 0.7 USD. So we depo $130 to put $100 ingame, minus international transaction fees and minus MA fees. I think MA has to address this problem.
Click to expand...

I'm not sure how MA can fix this.. If you give Aussie depos $1/1ped ratio. I'll convert all of my usd to Aussie dollar and MA will still lose..

Elect better leaders in Aussie.

And surprisingly my local ma and pa credit union doesn't even charge me international fees.. Strange but oh well.. Perks of using bank acct vs credit card. Better security too IMO.
 
When USD will colapse under inflation such numbers like OP provided would become dream :)
I doubt MA will be able to do smth about it except switch to another currency or alow fluent exchange rate with some external, competing PED prividers.

Fluent exchange rate will be ok for EU and MA only when USA will have bigger problems than MA itself, but is hard to imagine situation when PED is more valuable and worth wealth keeping in than USD. It would demand some wold wide financial cataclism.
 
jod said:
lol easier said then done,the pool to choose from is a little shallow ;)
Click to expand...

Agreed, self indulgent career politicians who represent nobody but themselves.

If I could log on long enough I'd sell my gear and skills.
 
Rocket192 said:
Regardless of what they pay it in euro depositors deposit in euros, not dollars..

Example: euro worth 10% less than dollar: 10,000 euros deposited = 9,000 dollars.. If the euro keeps decreasing in value to the USD, it doesn't mean euro depositors will start increasing their deposits to cover the difference. So MA gets less money from euro depositors.
Click to expand...

But they still buys PED/Dollars. If aplayer buy the same amount of dollars MA earn more with a higher USD/SEK exchange rate. Yes, some will buy fewer PED when the dollars goes up, but not everyone. Some will continue to buy about the same amount/month, it will just cost them more.
 
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