PlanetCalypsoForum.com :: Entropia Universe Discussion and Resources
Page 1 of 4 1 2 3 4 LastLast
Results 1 to 10 of 32
  1. #1
    Elite Naomi's Avatar
    Joined
    Jan 2007
    Location
    Calypso
    Avatar
    Naomi
    Society
    NotBeforeSocietyOverhaul
    Posts
    3,257
    Images
    43

    Question The PED-USD connection - will it last?

    Currently the PED is connecte dto the USD. But what with the current economic crisis? The FED has been digitally printing rediculous amounts of money, to buy up the stock exchanges, and prevent/reduce crashes due to the bad economic world situation.
    This is forming an enormous bubble, way worse then in 2008, or in 1998.

    The obvious solution, to any economist, is a financial reset. More and more rumours are coming out about this actually happening in the near future. In today's world where governments want to gain absolute control, it is unlikely that the dollar will simply be revalued. It is more likely that a digital currency will be adopted, or created, to which the economy will be forced to migrate.

    What will Mindark do in this kind of scenario?
    How will it affect the Entropia market?

  2. #2
    Mature
    Joined
    Apr 2019
    Location
    Calypso
    Avatar
    Rick Ricardo Sanchez
    Society
    Kaos
    Posts
    34
    Quote Originally Posted by Naomi View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Currently the PED is connecte dto the USD. But what with the current economic crisis? The FED has been digitally printing rediculous amounts of money, to buy up the stock exchanges, and prevent/reduce crashes due to the bad economic world situation.
    This is forming an enormous bubble, way worse then in 2008, or in 1998.
    That's...not what the fed is doing, nor is it even related to the feds' primary function. They manipulate interest rates for bonds, which influences cash flow within the market. The DOW is more-or-less maintaining/increasing right now because the stock market is a FUTURE projection and people are hopeful that things will recover quickly.

    Please stop pretending to understand economics and writing the 50th "what if the USD fails" thread of the week. IF any cryptocurrency becomes a major currency, it'll very likely be an established coin or a branch of an existing coin/algorithm - but this is also incredibly unlikely in the near term. The USD will be just fine, and if it's not we will all have much bigger worries.

    End thread.

  3. #3
    Elite Hypnotyk's Avatar
    Joined
    Jan 2006
    Gender | Ingame
    Male | Male
    Location
    Chicago, IL
    Avatar
    Randy Hypnotyk Bafia
    Society
    discord.gg/bdDeqtn
    Posts
    3,788
    Images
    82
    Quote Originally Posted by Rick Sanchez View Post
    This quote is hidden because you are ignoring this member. Show Quote
    That's...not what the fed is doing, nor is it even related to the feds' primary function. They manipulate interest rates for bonds, which influences cash flow within the market. The DOW is more-or-less maintaining/increasing right now because the stock market is a FUTURE projection and people are hopeful that things will recover quickly.

    Please stop pretending to understand economics and writing the 50th "what if the USD fails" thread of the week. IF any cryptocurrency becomes a major currency, it'll very likely be an established coin or a branch of an existing coin/algorithm - but this is also incredibly unlikely in the near term. The USD will be just fine, and if it's not we will all have much bigger worries.

    End thread.
    +1 to this - although I don't know how safe I feel about the market so I personally cashed out of my 401K to pay off debts to make me as cash flow positive as possible leading into these uncertain times. But I don't believe a digital currency will replace USD anytime soon

    Account Created 2005-01-19

  4. #4
    Old Alpha
    Joined
    Dec 2010
    Gender | Ingame
    Male | Male
    Location
    Under the I-96 overpass getting free wifi from Panera
    Avatar
    Xavier Target Technosplurg
    Posts
    738
    Images
    2
    The power of a currency is connected to the issuers ability to defend those conducting commerce in that currency both legally and physically. The U.S. has been that since WWII, hence U.S. currency has been the back bone of international trade, but of course there is talk of Chinese currency replacing the U.S. simply because it looks like in the long term it will be China that replaces the U.S. in the ability to defend those conducting commerce.... No digital independent digital currency will ever replace existing currency unless it is issued by a government that has the ability to defend those using it...

  5. #5
    Stalker Rocket192's Avatar
    Joined
    Nov 2012
    Gender | Ingame
    Male | Male
    Location
    Michigan
    Avatar
    Sean Rocket Connors
    Society
    Apocalyptic
    Posts
    2,076
    USD will continue to be the world's reserve currency far beyond our lifetimes. ECB and BOE are printing money faster than the US anyways, so it's a moot point.

  6. #6
    Old Alpha Spacejanitor's Avatar
    Joined
    Sep 2017
    Gender | Ingame
    Male | Male
    Location
    Netherlands
    Avatar
    Roger Spacejanitor Wilco
    Society
    (Col.) Arkadia Rouchnecks
    Posts
    781
    Images
    125
    What would prevent MA from pinning the P.E.D. to the Euro, as a failsafe?
    Last edited by Spacejanitor; 06-30-2020 at 16:29.

    Isle of Troy Plot #5 & Southern Ithaca Plot #14
    Nea's Place TP & Sanctuary Cove TP & Aakas Island Arkadia. Starfinder XIII & Firebird

  7. #7
    Prowler theProphet's Avatar
    Joined
    Mar 2006
    Gender | Ingame
    Male | Male
    Location
    Austria / Vienna
    Avatar
    Prophet the Prophet from Planet Zen
    Society
    Calypso Rescue Team
    Posts
    1,265
    Images
    36
    in case you didn't notice yet, like 99% of all money worldwide already is digital, sitting on some bank accounts, and only tiny bits of it are "real" cash.

    also it doesn't really matter how many trillion USD the FED will print, as long as the USA stays the hegemonic imperium it currently is, backed and enforced by their military, the demand for USD is nearly unlimited.

    when the economy needs money, the central banks will press their magic buttons, and there will be more money, simple as that. i see zero effects to EU, besides gameplay becoming cheaper over time because of inflation, which is nothing else than the everlasting devaluation of fiat money.

    a so called reset would imho surely lead to WW3, good luck to us that it will never happen.
    Free from desire, you realize the mystery. Caught in desire, you see only the manifestations. Yet mystery and manifestations
    arise from the same source. This source is called darkness. Darkness within darkness. The gateway to all understanding. 道德經 老子
    Eyes closed -.-

  8. #8
    Elite Naomi's Avatar
    Joined
    Jan 2007
    Location
    Calypso
    Avatar
    Naomi
    Society
    NotBeforeSocietyOverhaul
    Posts
    3,257
    Images
    43

  9. #9
    Stalker
    Become a premium member today and enjoy enhanced PlanetCalypsoForum features!
    MsPudding's Avatar
    Joined
    Feb 2011
    Location
    Salt Lake City, USA
    Avatar
    Rachel MsPudding Hawkins
    Posts
    2,346
    Images
    21
    Even with everything going on, the USD is the safest currency in the world to tie the PED to. I don't see this changing anytime soon. I think any change away from the USD would instill fear in me, at least right now.

  10. #10
    Stalker San's Avatar
    Joined
    Aug 2007
    Location
    That freaking cold place (in RL)
    Avatar
    Sandal San Tolk
    Society
    OldTimers
    Posts
    2,357
    Images
    31
    Quote Originally Posted by theProphet View Post
    This quote is hidden because you are ignoring this member. Show Quote
    when the economy needs money, the central banks will press their magic buttons, and there will be more money, simple as that. i see zero effects to EU, besides gameplay becoming cheaper over time because of inflation
    This is a naive fallacy ('Milchmädchenrechnung'). If the USD and therefore PED loses value, MindArk's revenue goes down with it and gameplay has to get more expensive, one way or another, to keep operational at all. If, say, only USD tanks but not European currencies, we might win in the short term, but the US is the biggest market and if there is a problem, all of us will feel it. The powers that be will probably try and support the USD because indeed so much more depends on it, but if this fails, as was pointed out above, we'll have other problems than playing a game. We're living in interesting times and it IS wise to be prepared for changes.
    1. I NEVER post off-topic.
    2. If you disagree, go to 1.

Page 1 of 4 1 2 3 4 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Follow Planet Calypso on Twitter  Follow Planet Calypso on Facebook