PED backed by Secured assets?

[Korin Dante MDe]

Like the Currencies of all major world economies like USD, CND, Euro are backed by real value items like Gold, Real Estates, Power etc, are the PED secured by any assets having real world values like if Entropia goes bankrupt will the MA offices and infrastructure and softwares, Licenses will be auctioned--Sold to payout active players?

 

[Falagor]

Like the Currencies of all major world economies like USD, CND, Euro are backed by real value items like Gold, Real Estates, Power etc, are the PED secured by any assets having real world values like if Entropia goes bankrupt will the MA offices and infrastructure and softwares, Licenses will be auctioned--Sold to payout active players?

Neither USD nor Euro is covered with gold (or any other) assets... just saying .

Last time i was reading EULA says they guarantee withdrawal of up to deposits you made during last 6 months - it may have changed.

Falagor

 

[AxeMurderer]

Apple shares werent backed by any gold, but I would love to have bought half the company when they started it in 1980. I hope same fate will come to Calypso shares. I'm not greedy, but at least 10 times the initial price will be good after 10 years. I plan to buy 1000 by then and become millionaire when I sell them.

 

[ermik]

Apple shares werent backed by any gold, but I would love to have bought half the company when they started it in 1980. I hope same fate will come to Calypso shares. I'm not greedy, but at least 10 times the initial price will be good after 10 years. I plan to buy 1000 by then and become millionaire when I sell them.

would you have loved to buy apple shares in 2008?.

Besides CLD´s arent the topic here, its about PED and tt values, of wich your CLD´s summed up at 0.

 

[Hagbard Celine]

Like the Currencies of all major world economies like USD, CND, Euro are backed by real value items like Gold, Real Estates, Power etc, are the PED secured by any assets having real world values like if Entropia goes bankrupt will the MA offices and infrastructure and softwares, Licenses will be auctioned--Sold to payout active players?

Sorry to break you illusion, but real word currencies are backed by nothing but the peoples belief that they have value.

 

[atomicstorm]

Sorry to break you illusion, but real word currencies are backed by nothing but the peoples belief that they have value.

Fiat money is money that derives its value from government regulation or law. The term fiat currency is used when a fiat money is used as the main currency of the country. The term derives from the Latin fiat ("let it be done", "it shall be").[1]

Fiat money was first used in China about a thousand years ago. Fiat money has been used intermittently by various countries since, concurrently with currencies that were backed by metals, primarily silver or gold. After World War II, the Bretton Woods accord set up a world-wide system of currencies that was pegged to the US dollar, while the US dollar was itself pegged to gold. The Nixon Shock of 1971 ended the convertibility of the United States dollar to gold. Since then, all reserve currencies have been fiat currencies, including the U.S. dollar and the Euro.[2]

A central bank typically introduces new money into circulation in the economy by purchasing financial assets or lending money to financial institutions. Commercial banks then multiply this base money by credit creation through fractional reserve banking, which expands the total supply of broad money (cash plus demand deposits). The amount of money in circulation is reduced by the opposite process. The value of fiat currencies is influenced by monetary policy.

-- Citation: Wikipedia @ http://en.wikipedia.org/wiki/Fiat_money

 

[SpikeBlack]

They used to cover the entire PED value but they changed the rules so that they only cover the last six months of deposits.

Provided they have enough money to pay off the creditors first we might get a some cash but we're the bottom of the pile and most of us will not see any where near out ped value.

Only deposit what you're willing to wave goodbye to.

 

[Neil Stockton]

Sorry to break you illusion, but real word currencies are backed by nothing but the peoples belief that they have value.

It's kind of funny but even gold itself doesn't have intrinsic "value" (beyond some technical uses based on its chemical properties). Its value is also based on the belief that it has value.

 

[Korin Dante MDe]

But our Trainer and Guest Speaker in our organization told us that all major world currencies like USD, Euro, INR, CND etc are backed by value of gold held by that country and also the infrastructure of that company and they also introduced us to a hidden secret about getting Tax paid refund which turned out to be true and this is hardly known to anyone I quized out of our Organization or know by Real Super Tax guru's only.

 

[atomicstorm]

You must have been taught by Timothy Geitner. #troll

 

[Mir]

What are 1's and 0 's worth when the server is off?

 

[aridash]

They used to cover the entire PED value but they changed the rules so that they only cover the last six months of deposits.

Provided they have enough money to pay off the creditors first we might get a some cash but we're the bottom of the pile and most of us will not see any where near out ped value.

Only deposit what you're willing to wave goodbye to.

MA have never covered the entire player PED value and the "rule" change was from limiting liability to "NO MORE THAN THE INITIAL AMOUNT TRANSFERRED BY SAID PARTICIPANT INTO THE ENTROPIA UNIVERSE" (i have the old EULA). some speculated what "initial amount" meant, first or all deposits (clearly first), but as there was never liquid assests to cover all deposits, its irrelevent.

 

[melander]

But our Trainer and Guest Speaker in our organization told us that all major world currencies like USD, Euro, INR, CND etc are backed by value of gold held by that country and also the infrastructure of that company and they also introduced us to a hidden secret about getting Tax paid refund which turned out to be true and this is hardly known to anyone I quized out of our Organization or know by Real Super Tax guru's only.

Not sure who that guest speaker was but none of the major world currencies have been backed by gold since 1971 when president Nixon terminated the ability to exchange us dollars for gold.(This was under the Bretton Woods system)

Best regards
Zweshi

 

[italiancarl]

It's kind of funny but even gold itself doesn't have intrinsic "value" (beyond some technical uses based on its chemical properties). Its value is also based on the belief that it has value.

Everyone close your eyes right now and repeat after me " I believe I believe I believe that ped gold and dollars have value" . There everything is safe now you can go back and play in peace.

 

[Wollongong]

Like the Currencies of all major world economies like USD, CND, Euro are backed by real value items like Gold, Real Estates, Power etc, are the PED secured by any assets having real world values like if Entropia goes bankrupt will the MA offices and infrastructure and softwares, Licenses will be auctioned--Sold to payout active players?

I hate to break this to you, but ever since the Bretton Woods agreement broke apart (a couple of decades ago)... currencies are for the biggest part NOT backed by real value items.

And no, if MA goes bust, we do not get the cash.

 

[aridash]

And no, if MA goes bust, we do not get the cash.

not least because if they go bust, its because there is no cash and little assets left...

 

[HardWrath]

Well, a long time ago, the total TT value of your avatar was in fact backed by real world assets. MindArk moved away from that model many years ago and it seems to be working just fine.

As the above people pointed out, IRL currencies are not backed by anything.

As far as AMA going bankrupt, I wouldn't worry about that happening. First of all, many of the investors have incredibly deep pockets. Second, MindArk has proven they have the ability to attract large quantities of players very quickly through limited and focused ad campaigns.

Moreover, there still are many many players depositing vast sums into the Entropia Universe.

 

[AxeMurderer]

would you have loved to buy apple shares in 2008?.

Besides CLD´s arent the topic here, its about PED and tt values, of wich your CLD´s summed up at 0.

Thread titled "PED backed by Secured assets?", but we can change it to PED and tt values

 

[Korin Dante MDe]

Well, a long time ago, the total TT value of your avatar was in fact backed by real world assets. MindArk moved away from that model many years ago and it seems to be working just fine.

As the above people pointed out, IRL currencies are not backed by anything.

As far as AMA going bankrupt, I wouldn't worry about that happening. First of all, many of the investors have incredibly deep pockets. Second, MindArk has proven they have the ability to attract large quantities of players very quickly through limited and focused ad campaigns.

Moreover, there still are many many players depositing vast sums into the Entropia Universe.

People still depositing same money as End - 2011 ? I doubt it as the CLD payouts are constantly declining.

 

[Xing Nu]

Neither USD nor Euro is covered with gold (or any other) assets... just saying .

that not how the system was build.

the system was build that you can only print as much curancy as you can back it up by gold.

for the OP

1, i doubt arkadia is not in truble (they badly try to rase 1 mill)

2, one planet alredy failed in EU

3, by 2017 EU will be done and buried

i doubt all the peds are covered it will be always the same first came first served. But whith litle chance they are assured.

There is comagnys Worth literaly trilions and they are in truble looking to fuse whith someone else 'deep poket' dont means any thing in buseness there is only one rule 'make money' if is not making money dump it as soon you can.

 

[Falagor]

that not how the system was build.

the system was build that you can only print as much curancy as you can back it up by gold.

I know that... but...

"was build" is not equal "as it is now"

Falagor

 

[atomicstorm]

People still depositing same money as End - 2011 ? I doubt it as the CLD payouts are constantly declining.

And they are going up too. All the threads saying it is constantly declining suggests we should be at zero.

It has always been cylical.

 

[Futurama]

Sorry to break you illusion, but real word currencies are backed by nothing but the peoples belief that they have value.

"Fiat money, if you like, is backed by men with guns." - Paul Krugman.



As for entropia - you do realize that if a company goes bankrupt (after it has been declared insolvent) its because they lost the ability to do business, pay their bills etc.? So therefore when that happens there is nothing left. And also don't forget that all the creditors, suppliers and staff will get their money (most likely part of it, since MA doesn't really have anything to sell when they go bust) first. As a player you will get absolutely nothing.

The withdrawer in a sense doesn't matter. They can always extend the time it takes to withdraw. But when a bank or another creditor files for insolvency (for unpaid server usage over an extended period of time for example), that's when shit hits the fan. And no, as a depositor you aren't a creditor, you are just buying a service from them.


In short - ped isn't backed by anything, its 100% your own risk, it might be around 10 years from now or it could be totally gone in a few months.

 

[crazy]

Neither USD nor Euro is covered with gold (or any other) assets... just saying .

Last time i was reading EULA says they guarantee withdrawal of up to deposits you made during last 6 months - it may have changed.

Falagor

and if it comes to that, good luck getting any MU

You will be tt'ing all your stuff

 

[italiancarl]

Let me make a quick point....

Right this second there is 756 pages of items on auction. I think its safe to say there is at least $10,000 USD a week in fees being pumped through the auction. This game isnt going anywhere anytime soon.

the market is the asset that backs ped.

 

[JD RACING]

the mu is not going to get paid only the tt of the item that if you can get it so a item that worth 300ped tt and you paid 100k for it

if they paid you get 300 peds that it that all

6month depo will only cover the cost of the item tt value

 

[billairboy]

Please stop using the "6 month bl.a. bl.a" in the ToU when talking about PEDS and tt value guaranteed or "secured" by MA. It has nothing to do with each other. And no, our peds are not backed up by any secured assets. Our security is other players, as long as we have players that are deposing enough money to keep it going it's secured. But if not.... well.

 

[Alainax]

Your trust in your ped card is the same as the trust that those digits you see on your online banking are actually real money.

If one day everyone decided they wanted gold/tangible assets for their digits/ paper notes... I'd be finding the nearest bunker/deserted island to hide on!

Trust is the name of the game my dear, as such is the world we live in.

 

[Xing Nu]

Your trust in your ped card is the same as the trust that those digits you see on your online banking are actually real money.

If one day everyone decided they wanted gold/tangible assets for their digits/ paper notes... I'd be finding the nearest bunker/deserted island to hide on!

Trust is the name of the game my dear, as such is the world we live in.

not realy you can take any amounts of money (in paper curancy) out of youre bank, yes if you take 10 millions it will be lots of bags to carry and yes the bank will need more that few days to gather all up but tehnicly you can.

in EU max is 99999 at times and you will need to pray for those 60 days that everithing go ok.

 

[Wollongong]

And they are going up too. All the threads saying it is constantly declining suggests we should be at zero.

It has always been cylical.

Wow...10 weeks of going down, one week of going up... that clearly IS cyclical