Entropia currency standard

[Gum Boot]

Kia ora Everyone,

It has been a while since I posted on this forum or contributed to Entropia Universe in any material way.
I'm certain subject like this has been discussed but I thought I would lay out my thoughts as someone who approaches EU from an investment perspective and see what the community had to say.

I've always toyed with the idea of getting back into Entropia, although, these days I cannot bring myself to invest material capital. Whether that is through ownership of in-game items, skills or ownership of investment products like deeds and land areas.

I believe it comes down to the currency standard of Entropia. the USD has been debauched particularly in the last two years in response to Covid stimulus. this has devalued the dollar substantially such that real yield returns even in EU are very negative.

The nominal deflation that EU has been experiencing over the last 5-8 years or so ( a long time anyway) has been compounded by the currency inflation also experiences amplifying the negative returns on owning EU assets, making the game overall much less attractive and much more expensive to play. Especially considering EU is now much more directly competing with other digital investments.

Inflation has debased the value of rewards such as globals, HoFs and ATHs as well as the materially of playing efficiently on top of the asset deflation. and for this, there is really little reason to play or invest in the platform.

I think the easiest way for Entropia to regain relevance and make playing less costly for all, especially the people with material amounts of money ingame (>1m PED) would be to adopt a currency standard with a much more responsible monetary standard.

I was wondering what the thoughts of the community were on this?

Ngā Mihi,
GB

 

[Naomi]

Been saying this for years!

 

[Msturlese]

peg it to BTC so when the bubble blows PED cost me less

 

[Gum Boot]

Yeah, BTC could make sense, but even a better fiat currency like Swiss Francs would be better.

 

[Bones]

I kind of like it how it is.

 

[addz]

Yeah, BTC could make sense, but even a better fiat currency like Swiss Francs would be better.

I'm going to need you to explain how this is better and not just a different flavour of bullshit to what we have now?

 

[KitsoP]

Best would be to ask for instead 1/10 to dollar to be 1/100.Cheap playtime,more players.I am not an investor i am a gamer.You smart investors better play stock markets.

 

[Thark]

Seems to me the dollar is still the world standard, and doesnt seem to be going anywhere anytime soon. Doomsayers have been predicting the dollars decline since, I dunno, Eisenhower or something? Oldest American president I can remember rn, hope he was after ww2. And people on this forum have been discussing this for years too, I bet we can find old threads from 2006 if they are still archived somewhere.

Not sure switching would make sense. But I dunno, im an engineer not a finance guy. Thoooo, switching to euro would save me some bank fees, so how about we do that?

 

[Msturlese]

EUR against Dollar has an historical boundary of 0.90/ 1.30
above 1.30 Europa suffers (not exporting)
under 0.90 USA suffers (can't sell debit )
in that channel is a long term international non monetary belligerent consensus

Monetary policy of USA is toward occupation and economy developement (keynes)
UE is toward control of inflation (madnate is to keep it under 2%)
some moment USD is high some is low.... just like 2.0 weapons.
put in game what you can afford to loose... or to suffer a moment of devaluation.
as a Swedish company i am very sure that MA considered to use EURO and decided
that international currency is for sure USD....
dont worry... Botswana has Hyperinflation,a nd Weimar republic is the ghost of past xmas.
as Alt-coins are regulated, the hype will diminish and dollar will come back..... it always does.

 

[mastermesh]

If ped isn't anchored to US dollar I suspect quite a few avatars won't be anchored to Entropia for long either.

 

[Naomi]

Nothing lasts forever. When you look through history, empires come and go, and so do currencies.

Typically at the end of an era we see soaring prices for raw materials and commodities, as well as a worsening economic bubble. The reason for this is not only that the materials get more expensive, but that the money it is exchanged for, has been devalued. To keep up, (and to keep the ppl from rioting), more money is printed. This will eventually turn into inflation, but this effect is always delayed.

During Roman times, the coins that were minted had an ever decreasing percentage of silver in it.
During recent times, tons of paper money was printed.
Today, printing money is just a press of a button, since it all happens digitally.

But the outcome of all of it is always the same.

It may be a generalization, but in big lines it comes down to this: A country has a certain value. This value is related to its possessions, and to its GDP, often it is also connected to its military influence (the bully). The total value of all money of 1 currency has a certain value. When more money is printed, the value of the money you hold in your hand, goes down, because it is divided over more money..
Do you believer in stimulus checks? Know that it comes out of your own pockets.
money printing -> inflation -> more money printing -> more inflation There is no way out, except war or a new currency.

35% of All U.S. Dollars in Existance Have Been Printed in the Last 10 Months
The time-delayed effect of this will be that the money you hold, or PEDs, will devaluate 35% at least.

Atlantis Report : Dollar in Freefall

Don't believe me, but check out people who are financially educated:

Even with an inflation of only 2% yearly, 100 USD has lost 64% of its value after 50 years. Imagine what a 10-15% inflation will do with the buying power of the people, ESPECIALLY since wages are NOT increased accordingly.
On top of that, we have a supply chain that is becoming flawed.

Some Commodities are up 50-75% in 1 year, and there is no end in sight yet.
Commodity prices soaring

 

[Aloisius]

I'm going to need you to explain how this is better and not just a different flavour of bullshit to what we have now?

The middlemen are removed from the equation.

 

[Bizanaq]

Nothing lasts forever. When you look through history, empires come and go, and so do currencies.

Typically at the end of an era we see soaring prices for raw materials and commodities, as well as a worsening economic bubble. The reason for this is not only that the materials get more expensive, but that the money it is exchanged for, has been devalued. To keep up, (and to keep the ppl from rioting), more money is printed. This will eventually turn into inflation, but this effect is always delayed.

During Roman times, the coins that were minted had an ever decreasing percentage of silver in it.
During recent times, tons of paper money was printed.
Today, printing money is just a press of a button, since it all happens digitally.

But the outcome of all of it is always the same.

It may be a generalization, but in big lines it comes down to this: A country has a certain value. This value is related to its possessions, and to its GDP, often it is also connected to its military influence (the bully). The total value of all money of 1 currency has a certain value. When more money is printed, the value of the money you hold in your hand, goes down, because it is divided over more money..
Do you believer in stimulus checks? Know that it comes out of your own pockets.
money printing -> inflation -> more money printing -> more inflation There is no way out, except war or a new currency.

35% of All U.S. Dollars in Existance Have Been Printed in the Last 10 Months
The time-delayed effect of this will be that the money you hold, or PEDs, will devaluate 35% at least.

Atlantis Report : Dollar in Freefall

Don't believe me, but check out people who are financially educated:

Even with an inflation of only 2% yearly, 100 USD has lost 64% of its value after 50 years. Imagine what a 10-15% inflation will do with the buying power of the people, ESPECIALLY since wages are NOT increased accordingly.
On top of that, we have a supply chain that is becoming flawed.

Some Commodities are up 50-75% in 1 year, and there is no end in sight yet.
Commodity prices soaring

Very nice post there

 

[Thark]

Commodity prices soaring

I dont really know what the "index of a commodity" means tbh but looking at a few of those (I was too lazy to add all) over a 10 year span looks much different than comparing it from the beginning of covid to now:

I did that on: https://www.spglobal.com/spdji/en/indices/commodities/sp-gsci-soybean-meal/#overview

As I said Im not really into finances but that seems fairly stable. Appearently you would have even lost up to 3.8% or made a measly 0.36% betting on those "indexes"? Does that directly correlate to prices or sth?

I just thought Id share the picture incase someone else can explain what any of that even means and wants some context.

Oh and during my research into that x% of money was printed in the last year I found this: (For German speakers)

Unglaubliche Zahl: 20% allen Geldes wurde 2020 "gedruckt"

...und trotzdem gibt es noch keine Inflation, zumindest gemessen an den Verbraucherpreisen. Das muss aber nicht immer so bleiben.

www.godmode-trader.de

It says that in canada, 75% were printed 2020. It keeps talking about why this is normal, why that happend and what not, most of which I dont fully understand. But it talks about how that money was used to buy government bonds and that that for some reason doesnt correlate to inflation.

where the left side is the growth of bonds(dark blue) and the right (light blue) is inflation.

They explain, that most of that money is used to finance additional costs the governments had, to finance deficits. that is inflationary but at the same time (as opposed to the 40s) a lot of demand has plummeted and a lot of the industry is running slowly, which is deflationary. they end with saying that hyper inflation is not likely but that any time that governments have to intervene so harshly, its a small path to walk but at least in this crisis, they seemed to have made it work.

Oh and I also found that that "printed" money also comes in different flavors, apparently money comes in different forms, M0, M1 to M3 or something. And M1 is the coins and paper money plus the stuff on your bank account. Which to me makes sense, that that increased during covid? But thats a can of worms Im not opening. Finances are confusing lol

Take from that what you will, and like I said, I certainly dont understand half of all the implications, buuut there are sources saying things are ok too.

Cheers

 

[San]

MindArk's bills are paid mainly in Swedish kronor and Euros. If anyone is painfully aware of currency risks, it's them. If this fails because the Dollar tanks too much, we all together will have much bigger problems than the survival of a game. We're in the same boat. It's nice to play a game with real economy, but don't make your life dependant on it.

 

[Hero]

Yeah, BTC could make sense, but even a better fiat currency like Swiss Francs would be better.

Yeah, BTC could make sense, but even a better fiat currency like Swiss Francs would be better.

Seems you dont know much about the Swiss francs they got long time hold up by gouvernment and than they stoped and fall fall fall

 

[Aloisius]

MindArk's bills are paid mainly in Swedish kronor and Euros. If anyone is painfully aware of currency risks, it's them. If this fails because the Dollar tanks too much, we all together will have much bigger problems than the survival of a game. We're in the same boat. It's nice to play a game with real economy, but don't make your life dependant on it.

foreknowledge is forwarned. we gave them plenty of heads up for the coming debasement of the USD. the world won't end if the USD collapses. EU should be able to unpeg it's PED and peg it to something else. i always like crypto because no banks get their grimy hands on every little transaction. MA could have been the trailblazers but chose not to lead. hopefully they can follow some safe path forward. scaredy cats don't lead. and hopefully they stay clear of CBDC's because the banksters want their cut already.

 

[MrFatBoy]

when the financial crisis hit people said peg it to the UK Pound, Peg it to the Australian $ - umm how does the $ look now compared to those two (actually asking cause i cannot make pretty charts like you guys can but i am almost certain the GBP went from $2 per GBP to 1.3-ish and AUD went from parity to like .6 USD to 1 AUD at some point). My timing could be off here so...

and as for crypto - well today its 60K tomorrow it 30K then its 60K - yeah that will work really good lol

get over it the USD is not going anywhere and ALL currency's depreciate over time - or is it just the US printing money ?

I recall some people saying "look at how the US fucked the worlds economy back in the financial crisis only to later see the EU was way worse - Greece at one point could have been bought for like $50 lol (no its not funny actually regular people got screwed thanks to politician and fat cat bankers)

 

[Gum Boot]

I'm going to need you to explain how this is better and not just a different flavour of bullshit to what we have now?

Seems you dont know much about the Swiss francs they got long time hold up by gouvernment and than they stoped and fall fall fall

Hi Hero, Addz,

Swiss Franc has seem some substantial devaluation over the last few decades as even the swiss have been drawn into the global race to debase, last 5 years however they have chosen to protect and even appreciate the CHF a little.

The CHF generally only has a 4-4.5% monetary inflation rate of the last 30 years, compared with the USD's ~8% so its generally a better deal if you were going to stick with a fiat currency.

I'm only bringing up some ideas to discuss. I think the broad possible categories could be:

1. Status quo - remain on USD
2. Stay fiat - find the least dirty shirt in the basket and use the currency or a stablecoin of that currency.
3. EU Crypto token - create own currency
4. Exising Gaming Crypto - Such as MANA and make it interoperable with other gaming platforms.
5. Existing Standard Crypto - BTC / ETH

I think eventually MA's hand will be forced and they will have to adopt something better in the future.

Keen to see what peoples thoughts are on these five possible scenarios.

GB

 

[Aloisius]

when the financial crisis hit people said peg it to the UK Pound, Peg it to the Australian $ - umm how does the $ look now compared to those two (actually asking cause i cannot make pretty charts like you guys can but i am almost certain the GBP went from $2 per GBP to 1.3-ish and AUD went from parity to like .6 USD to 1 AUD at some point). My timing could be off here so...

and as for crypto - well today its 60K tomorrow it 30K then its 60K - yeah that will work really good lol

get over it the USD is not going anywhere and ALL currency's depreciate over time - or is it just the US printing money ?

I recall some people saying "look at how the US fucked the worlds economy back in the financial crisis only to later see the EU was way worse - Greece at one point could have been bought for like $50 lol (no its not funny actually regular people got screwed thanks to politician and fat cat bankers)

you the EU crypto factchecker hay! can i get a job there too? how much do they pay?

 

[The Stare]

I foresee this becoming China's century much as the last became the US's. Everyone seems to be forgetting them.

 

[Ranavolana]

Whenever did the AUD have parity with the USD? That would have been a long long time ago (if ever)

And whatever could go wrong with the US just continually printing money? I am pretty sure that there was a historical precedent for that in the first half of the 20th century - now how did that work out

 

[Gum Boot]

Whenever did the AUD have parity with the USD? That would have been a long long time ago (if ever)

And whatever could go wrong with the US just continually printing money? I am pretty sure that there was a historical precedent for that in the first half of the 20th century - now how did that work out

AUD was worth more than the USD between December 2010 and May 2013.
two main drivers were the GFC coupled with a generally strong AUD as China was buying up huge swathes of Australian resources. even the NZD peaked at 90 cents to the USD.

 

[MrFatBoy]

you the EU crypto factchecker hay! can i get a job there too? how much do they pay?

maybe try a response that actually addressees something - as far as pay ill pay you in crypto - 50K umm 35K umm 75K umm make that 12K you know how crypto goes !

and i least i am not dumb enough to think crypto has any chance of ever replacing any major fiat let alone the USD but you keep believing what the internet tells you to believe. or maybe you would dazzle us with you credentials that make you the expert on all thing finance?

my post just pointed out that this issue has been talked to about before and there is a reason the CHF/GBP/AUD etc.. is not the global currency - but why dont you explain i am sure you got some good conspiracy theory that will amuse us all. Or are you just another anti-US know it all - maybe from Greece??

but thanks for the worthless reply i guess.

 

[Gum Boot]

I suppose, the good thing about the USD is that it has masked the amount of asset deflation that has occurred in EU over the last decade since its peak. which MA would probably appreciate.

 

[Thark]

I suppose, the good thing about the USD is that it has masked the amount of asset deflation that has occurred in EU over the last decade since its peak. which MA would probably appreciate.

What is that even supposed to mean? That sounds like nonsense to me lol, asset deflation, i cant even wrap my head arround what that means lol.

Assets are things like houses?
And deflation means costs less money but is worth more? Not true
Deflation means costs more money which is worth less? Thats inflation, no?
Or that there are fewer assets in europe now? How does that work? I think there is more stuff here than a decade ago, also googling that phrase brought up other stuff but nothing to explain that phrase.

In 2020 some countries in europe did have some deflation but what has that to do with anything? Werent you guys just saying inflation inflation?

 

[Deemer]

You people missed the important points.

 

[Aloisius]

so let me do the math = there's 5 trolls out maintaining the status quo.

whatever you do, don't mention hyperinflation or cryptocurrencies.

 

[Naomi]

Australian Beef Prices Hit Record High As Food Inflation Concerns Persist

 

[MrFatBoy]

so let me do the math = there's 5 trolls out maintaining the status quo.

whatever you do, don't mention hyperinflation or cryptocurrencies.

you still haven't figured out what HYPER-inflation is so no use trying to explain to you -

so just put all you $ into crypto to hedge again hyper inflation - because crypto is immune to hyper inflation right...

and as for troll - you are the one posting dumbass threads like "hpyer-inflation is now!!! really why don't you explain why - or did the Youtube guy not explain why there is hyper inflation coming? maybe he is just talking shit - you think? maybe? -

thanks for the dislikes - i collect those so keep them coming !!! like anyone gives a fuck about their EF rating lol