I have been thinking about this for some time now. I’ve asked soc mates and others how hyperinflation would affect this game. No one seems to think it’s possible. But in the real world almost every financial news advisory is warning people to get gold, silver or bitcoin. I’m quite sure they are right. Now, since EU’s economy is intricately related to the USD currency, how will hyperinflation affect us and the RCE in Entropia Universe?
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Well currently 1 AUD is buying 0.69 USD, so for Australians its good as our deposits go further.
I wouldn’t worry too much as China and Japan own Trillions of USD bonds so it isn’t in their interest to let the US economy falter. Yes there will be a big ass recession/depression in the US due to the 40 million unemployed, COVID, race riots and likely Q2 and Q3 poor earnings data etc.
The current sentiment is that there will be a second stock market crash as Wall street is in current fantasy land. Company share prices can’t keep going up when they are making losses. June/July will be brutal for the stock market.
Some countries are having second waves of infections, some are still struggling with the first wave of infections.
Just hang in tight, your PED are fairly safe in game.
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Hey there I run a commodities pool and work on a hedging desk for a bank.
hyperinflation of USD relative to other currencies won’t happen, other nations are forced to print money faster than the US…
inflation vs. commodities is about all you need to concern yourself with. i.e. goods get cheaper, exchange rates stay the same, and services get cheaper (barely).
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Seems legit but doesn’t answer the question. It’s the values I’m getting at here.
Right now, 30 peds buys you a starbucks coffee. In a hyperinflation scenario, if the FED gets their way, a starbucks coffee will cost 10 or 100 USD therfore 1000 PED will get you the same coffee. Is there anything missing here?
I seriously see an issue here not just my account value but the entire survival of the EU potentially and the entire community should be thinking about this.
Imagine if we do go hyperinflated that would lower the “value” of your ingame storage, right?
I suppose hyperinflation might be the wrong keyword here. If it’s a collapse of the fiat system I’m seeing, how would a new financial system backed by gold look to PED holders after the reset?
our firm is preparing for some sort of new synthetic/digital dollar if/when we move off of USD as the world reserve currency (no not bitcoin don’t get excited).
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very interesting anecdote supports my query. i wonder if MA is thinking about this?
Short answer: Yes
Longer answer:
It’ll be ok.
- The US is going through a very, very bad period right now. However, hyperinflation is something i dont foresee. Too many things for that are in order.
- MA could change the anchor for the PED to a different currency than the US $. The US $ has, historically been a stable currency, but times change.
Crypto, because of it’s design (decentralised) would mean a huge change for MA. Now all deposits/withdrawals g through MA. Earning them a cut on all transactions. With crypto that would be gone.
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It’s not very likely that we’ll experience a hyperinflation scenario.
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I doubt we will get hyperinflation, but it is probably likely the fed will target higher inflation in its policies than it has in the past, since inflation reduces the burden of existing debt which the us is growing in massive abundance at the moment.
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yep, should probably peg a currency that in the last 30 days has been between $8,800 and $10,200.. seems stable enough… jeeeeezus…
no. no. no.
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Interesting thread! Thanks for the info form the inside Rocket..
I am wondering what you guys think about incorporating a decentralized exchange as deposit withdrawal options?
How they work for those not familiar is it allows both sides of the transaction to use and receive whatever currency/coin they desire.
One such example is the Stellar network, there are many others…
It seems to me this can be the way forward lowering transaction and conversion costs for all involved as well
`008
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Stock markets shouldn’t even have recovered as much as they did.
While i agree that a second stock market crash should happen and be even steeper than the first one I wouldn’t bet on it.
Fed is printing funny money by the metric ton at a time when production is still artificially halted because some people have the sniffles.
All that fiat has to go somewhere.
Crazy times.
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The US democrats showed their hand recently with the latest relief bill that got passed. Prior to the actual bill coming to the floor, the one that made it around to everyone had a provision for a digital dollar. It quickly got retracted.
Expect this in the next 4-8 years.
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Do you expect the dollar to get pegged back to gold? Before or after E-Dollar/Libra?
Not sure about 4-8 years but something big will have to be orchestrated first. Total banking system and/or economic collapse? Second Wave anyone?
Also expect quasi or formal cashless society forced on us first. Otherwise people may try to withdraw tons of cash when e-money is announced.
It will never be pegged to any commodity because it was originally removed so they could switch economic systems to maturally assured economic destruction. We are all tied to one another. If China goes or US goes, as does the rest of the world. We subsequently went from a more accountable, balanced system to a reckless keynesian one. It allows corrupted politicians to print whatever they like and “loot the treasury” based on whatever crisis comes up. Every country is doing it, some more than others.
The digital currency will be in the next few years. I had always wondered if cryptocurrency existed to allow for the maturing of this technology to later be instituted as a whole.
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Reading that as ‘mutually’. Interesting thought.
Why would pegging dollar & possibly all other currencies to gold break this idea?
The bad guys have been planning this for decades. It’s possible the White Hats are legit and have usurped this plan more likely that they are just a second prong.
This is another point that I am trying to get at. Seems the “great reset” is inevitable. Either the good guys are gonna get it to happen or the black hats are gonna make it happen. The rumor I am hearing is some kind of gold backed digital financial system (not Libra, not Bitcoin, more Ethereum-like) is coming.
This is exactly the hyperinflation. The stock market is doing it. The free money/ guaranteed income is doing it. The food values are doing it. It’s obviously being forced. To what end?
I absolutely feel this about bitcoin. Satoshi was a spy? The NWO one world government plan is the shitstorm we are seeing now. Trump is the wildcard. I’d say our last chance, but for what? Everyone knows we need a new system.
Now, before I derail my own thread, MA is obviously biased in the current situation. Do they know what’s coming? Maybe, maybe not. Either way, it’s an issue that directly affects the Entropia Universe RCE model and indirectly affects each and every citizen in this game. The purpose of this thread is help myself and others get through this and possibly to enable profitable decision making going forward in a fair and informed manner.
I think this is what’s in the works. Precisely because it breaks that idea. Corruption is the ideology that qanon is exposing. All the other ideologies that depend on corruption will falter if the illusion of fiat currency is destroyed. That is what’s happening now.
Again, either way the USD is going the way of the dodo. If MA is not on top of this crazy situation Entropia Universe will also go extinct even if the internet does survive the apocalypse.
So, bitcoin is not inflated?
:scratch2:
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I’m wondering specifically what do do in preparation. Passively waiting for the post SHTF settle seems the smelly option. Would it pay to buy some items in game? Or should a person sell everything now, cash out, turn the peds into Bitcoin, gold or silver and buy back in later? Should a person spend all the free stimulus money in game? Maybe spend all peds on stuff with higher MU and hold for the future? Maybe don’t depo at all and just buy food, ammo and machetes? I suppose if the end of the world is upon us none of this will even matter but I would bet it’s not over for at least a few more years. Maybe shouldn’t be playing at all and pay attention to RL?