The PED-USD connection - will it last?

Naomi

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Naomi NP Polder
Currently the PED is connected to 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 (digital dollar) will be adopted, or created, to which the economy will be forced to migrate.

- The dollar will not trade 1 to 1 with the digital dollar.
- The digital dollar will be bound with smart contracts (read: expiration date on your money)
- The digital dollar wil have conditions of use, (read: you only have access if you are a 'good citizen')

What will Mindark do in this kind of scenario?
How will it affect the Entropia market?
 
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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.
 
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
 
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...
 
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.
 
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.
 
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.
 
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.
 
The US ultimately uses it's military (and other agencies like CIA) strength to shape the world to it's benefit. Until this changes the dollar is safe.
 
1. It is my opinion that the Federal Reserve is buying into the U.S. stock market now because they don't really have any other choice, i.e. if they don't then the stock market will crash which will allow other countries like China for example to step in and buy up all kinds of U.S. Corps at a huge discount and the Fed just have way too much at stake to allow that to ever happen.

2. When you say "digital currencies" I think you are confusing things a bit. Most Fiat currencies exist primarily in a digital form, i.e. as numbers in a computer balance sheet as opposed to a physical object representing it. I think what you mean to say is 'Crypto currency', which is a completely different thing. And no, I don't see Cryptos replacing the U.S. dollar anytime soon.

3. We are in an era of world polarization right now, 2 distinct 'poles' are forming. The U.S. will continue to be relevant as long as they remain as one of these 2 'poles', but alas if they don't resolve some of their socioeconomic challenges at home, then they will eventually fall into disrepute on the world stage, but that could take another 60 years or more. And yet, having said that, the U.S. enjoys many advantages which shouldn't be overlooked and which I think are going to play in their favor for a long time to come. There are too many to list here but consider just this one for example: while most countries in the world had to spend a decade or more re-building after WWII, the U.S. remained completely intact, this being due to having as it's neighbors a) an ally to the north b) a weak neighbor to the south and fish on the East and West borders. This geographical circumstance is a huge advantage envied by many countries in Europe which were completely decimated in WWII. In any future large scale war, America is pretty much guaranteed to come out of it in relatively better shape then most.

America rose to be the wealthiest country on earth not because of it's military or the atom bomb but because they empowered their citizens with rights and good pay. Unfortunately, the U.S. is now very busy stripping away all that had been gained and giving it to Corporations which ultimately couldn't care less about anything else but the mighty dollar and themselves. This will erode away all of the freedom and wealth that the nation has enjoyed these last few decades.

China is going further and further into debt now, and for the first time, their strategy to make big loans to other countries to build infrastructure is blowing up in their face. They are extremely productive so ultimately they will continue to grow their economy, but only if they are smart and don't squander this productivity and also do as the U.S. did and empower their own citizens. But everything I've studied on the matter seems to indicate that the CCP is incapable of doing that and so ultimately, I think they can only shoot themselves in the foot in the medium-to-long term, unless there is a major revolution in China and a new system that grants rights and good pay to their citizens is put in it's place.

Because of this, I believe India is more likely to catch up and eventually surpass China. There is more freedom in India and their population is expected to surpass that of China sometime around 2025 since they never had any limits imposed on the number of children people were allowed to have there. If China is smart, they will make sure to make India a close ally of theirs and thus maintain relevance long-term as part of the 2nd 'pole', but on-going conflicts at their shared border would indicate that the CCP is not smart in this regard, and doesn't really understand how important India is to their future..

--
It may seem as though I have gone completely off topic but my point is that Countries do matter, countries issue money and that money is backed by that countries productivity (GDP) and also by a confidence which is held by an entire population. Crypto is issued by... ? Who exactly? And who is it that will ultimately uphold the confidence when it all goes bust? Is the bank going to take your Bitcoins and give you U.S. cash for it? I think not..
 
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i think the usd will be fine but personally never understood why the ped was statically tied to any other currency. one usd has a different value today than 18 years ago. why not treat ped like any other currency - regulate and limit its creation and have players trade for it on a dynamic exchange. this empowers ma to control their own economy and players to determine what the real value of ped is.

disclaimer: im no economist, so maybe this is dumb.
 
i think the usd will be fine but personally never understood why the ped was statically tied to any other currency. one usd has a different value today than 18 years ago. why not treat ped like any other currency - regulate and limit its creation and have players trade for it on a dynamic exchange. this empowers ma to control their own economy and players to determine what the real value of ped is.

disclaimer: im no economist, so maybe this is dumb.

It is. Tying PED to USD makes it a fixed currency.

Untying it makes it a variable currency, subject to internal vs. external variables. Internal variables puts the burden on Mindark. External variables allows the understood value of the fixed currency to go up and down based on foreign exchange.
 
Untying it makes it a variable currency, subject to internal vs. external variables. Internal variables puts the burden on Mindark. External variables allows the understood value of the fixed currency to go up and down based on foreign exchange.


why is that bad? asking for an education, not debating... maybe ped is overvalued or undervalued at $0.10 - would a variable exchange help correct that?
 
I wouldn't mind the PED being connected to the value of gold or silver somehow... ,
Not exactly sure how it would work.

In the long run rare metals link to PED is very likely to secure your MA investments.
USD has devaluated systematically, ever since its existance.


People think that the metal values have been rising, which is kind'a true. But also the USD, EUR and other currencies have been loosing value, which make it look like gold is more expensive today. The more moneyprinting there will be, the more metals will be valued.

2. When you say "digital currencies" I think you are confusing things a bit. Most Fiat currencies exist primarily in a digital form, i.e. as numbers in a computer balance sheet as opposed to a physical object representing it. I think what you mean to say is 'Crypto currency', which is a completely different thing. And no, I don't see Cryptos replacing the U.S. dollar anytime soon.

Neither do I, if you are talking about decentralized crypto currencies. There are however centrally controlled digital currencies, on which many governments are very keen, China and Turkey, USA, France for instance have shown a lot of interest to implement this.

With 'digital currency', I mean exlusively digital availability, so no more coins or notes.
The advantage towards no more cash is that governments can grab much more power over you by controlling your money access and abolishing privacy completely.

It will be 'for your own good', 'for your own safety', and 'only criminals want to hide their transactions',... bla bla bla, the same old rethoric.

I'll avoid going political since this is not the forum for it.
 
why is that bad? asking for an education, not debating... maybe ped is overvalued or undervalued at $0.10 - would a variable exchange help correct that?

because then ped would be classified differently and external forces can exploit the currency. This is far as i am going to get into this as I don't feel like teaching economics.

Having fixed currency is important for an RCE.

As for digital currencies, a digital dollar is coming. The democrats in the US accidentally tipped their hand during stimulus 1. Thr language is already written as with all big bills that are introduced.. think tanks write them up and congress lobbies them... (very sketchy ones). It was quickly retracted. Expect it in the next 4 to 8 years because that way they can print into oblivion and for "other" reasons that I will keep to myself because well.. some will appreciate it and others will just toss at it.
 
Neither do I, if you are talking about decentralized crypto currencies. There are however centrally controlled digital currencies, on which many governments are very keen, China and Turkey, USA, France for instance have shown a lot of interest to implement this.

Well for one thing, China has not legitimized Cryptos, to the contrary they are banning them as of late.

Yes there is a lot of money printing going on but MindArk is subject to this to the same extent that we all are, why should they offer shelter from that runaway inflation when they themselves are not precluded from it.

For them to accept other currencies in exchange for PED which derives it's value based on actual physical gold means that now every transaction becomes at least 2 transactions, this would lengthen all flows of money, in and out, not to mention the extra burden on MindArk to buy and hold gold to back the PED with.

Frankly this seems really too complicated for EU in it's current scope and population.
 
how about they switch it to a different currency peg every week...that would be fun....next week, british pound, you get only 8 ped per dollar, but in three weeks, yen, u get 108 ped per dollar....sure would make the forum chatter exciting.....
 
I really think the RCE aspect of this game is the main problem overall. Tying into the USD WAS the stablest option, but I think that is no longer true. If money is the root of all evil, PEDs is also.

Hyperinflated USD might actually be happening now. Is there a contingency plan? :
https://www.planetcalypsoforum.com/forums/showthread.php?316420-Hyperinflated-USD-might-actually-be-happening-now-Is-there-a-contingency-plan

PED pegged to gold or silver is interesting idea. Imagine how interesting PED/BTC would be.

I don't know what to peg to that would hold the values of our accounts. But staying pegged to USD in this environment is going to be a very bad thing IMO.
 
When I first started playing EU well over a decade ago, I could get almost $2 for each £1. So almost 20 ped to the £1. That exchange rate has declined drastically.

I have more faith in a real world currency than crypto currency. Can't see dollar failing anytime soon, no matter how much debt a nation builds.

Rick.
 
Perhaps they'll just revive their DeepToken.

 
I hope they dont touch this

Its be long b.s if my profits start worth nothing
because someone say hey now you going be payed with fake-coins that have no real values
 
More than 65 countries peg their currencies to the U.S. dollar while five U.S. territories and seven sovereign countries use it as their official currency of exchange. It is the most accepted currency in the world, in any country you go you can exchange dollars for the local currency. In order for USD to fail all of the above will have to stop abruptly which I can't imagine in any scenario. The USD will most likely fade away in time as the sole major reserve currency and the world will use as reserve currency a basket of currencies like XDR which includes the dollar. Removing the PED USD peg would be the end of Entropia.
 
moneyprintergobrrr.jpg
 
TBH I don't think the PED-USD connection will change.

It is a fact that with 10k USD today, you can't buy what you could buy 10 years ago, and 20 years ago,... etc. The USD is a permanent devaluation/inflation system, which has been succeeding in its mission.

This system ensures that the savings of your grandparents and parents will have lost most of their value, by the time you inherit them. After all,... if you had enough money, you could escape the worker/tax system... It is undesirable for you to reach a state of wealth. The 0.1% wants to keep the gap between them and you.

USD-PED
If you deposit 10k USD in Entropia today, deliving you 100.000 ped, and if you're lucky andare able to withdraw it in 5 years. That 10k will look like break-even to you, but in 5years it will be worth like what is 8k today.

GLD-PED or SLV-PED
If you deposit 10k USD in Entropia today, delivering you 100.000 ped (for instance, could be a diff. amount), and if you're lucky you are able to withdraw it in 5 years. Then your 100.000 ped is converted, according to the price of gold which always increases throughout history, ... you will get more then 10k USD back

That would make EU acutally interesting as an investment, and make it more then just gaming and spending your money.
 
TBH I don't think the PED-USD connection will change.

It is a fact that with 10k USD today, you can't buy what you could buy 10 years ago, and 20 years ago,... etc. The USD is a permanent devaluation/inflation system, which has been succeeding in its mission.

This system ensures that the savings of your grandparents and parents will have lost most of their value, by the time you inherit them. After all,... if you had enough money, you could escape the worker/tax system... It is undesirable for you to reach a state of wealth. The 0.1% wants to keep the gap between them and you.

USD-PED
If you deposit 10k USD in Entropia today, deliving you 100.000 ped, and if you're lucky andare able to withdraw it in 5 years. That 10k will look like break-even to you, but in 5years it will be worth like what is 8k today.

GLD-PED or SLV-PED
If you deposit 10k USD in Entropia today, delivering you 100.000 ped (for instance, could be a diff. amount), and if you're lucky you are able to withdraw it in 5 years. Then your 100.000 ped is converted, according to the price of gold which always increases throughout history, ... you will get more then 10k USD back

That would make EU acutally interesting as an investment, and make it more then just gaming and spending your money.

Instead of playing a 'game' ... why dont you trade forex or commodities against forex. You seem to an insightful wizard of all things future...

You would do much better trading forex, then getting worked up over 101% tt.
 
TBH I don't think the PED-USD connection will change.

Then why even make this thread? The whole premise was you wondering if that connection would last?

USD-PED
If you deposit 10k USD in Entropia today, deliving you 100.000 ped, and if you're lucky andare able to withdraw it in 5 years. That 10k will look like break-even to you, but in 5years it will be worth like what is 8k today.

GLD-PED or SLV-PED
If you deposit 10k USD in Entropia today, delivering you 100.000 ped (for instance, could be a diff. amount), and if you're lucky you are able to withdraw it in 5 years. Then your 100.000 ped is converted, according to the price of gold which always increases throughout history, ... you will get more then 10k USD back

That would make EU acutally interesting as an investment, and make it more then just gaming and spending your money.

And imagine thinking gold or silver is 1) more stable, 2) a good choice of investment to keep up with inflation, and 3) easier to back and exchange than the USD. With your impenetrable understanding of economics and inflation, you should just day trade and leave us idiots behind. Soon enough, you'll be able to just buy us all out with your mountains of precious metals.
 
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