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.
PED pegged to gold or silver is interesting idea. Imagine how interesting PED/BTC would be.
I donât 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 ÂŁ1. So almost 20 ped to the ÂŁ1. That exchange rate has declined drastically.
I have more faith in a real world currency than crypto currency. Canât see dollar failing anytime soon, no matter how much debt a nation builds.
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 canât 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.
TBH I donât think the PED-USD connection will change.
It is a fact that with 10k USD today, you canât 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 youâre 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 youâre 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.
Then why even make this thread? The whole premise was you wondering if that connection would last?
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, youâll be able to just buy us all out with your mountains of precious metals.
Well MA have their debts to players in PED/USD so I guess they should be winners if the dollar got cheaper :silly2::silly2: But they would loosers in the long run if players donât compesate the cheaper dollar with spending more of it.
I never understood why ped is linked to the dollar and not the EURO. MA is located in sweden, its bank aswell. The euro is much more stable then the dollar. so why are we linking ped to dollars? Seems like a bad idea with the curent economy.
I think this is because Project Entropia started development back in 95/96, but the euro as a currency wasnât born officially until 1999. Even then, it wasnât until later that the euro was considered to be a stable currency.
I think thatâs mainly why PED is tied to the dollar and not the euro, besides the dollar was much more powerful back then.
But Iâm not an expert by any means, I could be wrong.
