Regarding Inflation, the effects and repercussions therein

[J 4 C K]

Let me start out by saying I never, ever, ever make threads. It's new to me. This is probably structured like dangus.

It's occurred to me that most Gaians don't understand economics. I hear complaints and cries of "inflation is ruining Gaia".

The complaints are always so similar. You've now got more gold than you have ever had before, and you still can't afford your dream items.

I feel compelled to explain the situation at hand.. This inflation has no impact on the structure or playability of the website. Items you couldn't afford before, you still can't afford. Why is this shocking? The cost of items and the amount of gold in the system have both risen.
There is no difference in the ability to earn gold between any Gaian. I can earn as much as any other person. At the very least, I have the ability to. People seem to think big numbers are bad. So I'll use small numbers to use in an example.

If a hat costs 10 gold and you only have 5, you'll be upset that you can't get it. In this situation, you can gain 2 gold per day, or something similar. Suddenly, inflation. The item costs 20 gold and you have 5 still. Now your ability to gain gold increases. You can earn 5 per day. You have 10 out of 20 gold.

You're just as far away, relatively. What I'm getting at is.... The number of zeroes doesn't mean anything if you have more gold as well, which we do. You can't complain about the inflation when nothing has changed.

The only reason inflation matters in a real world setting is because people don't earn an equal amount of money. A doctor and a grocery clerk aren't equal when it comes to pay. People in the real world have physical needs. Not earning money kills you. Gaia has no needs when it comes to your avatar. That means all of your profits can be used in the effort to invest in more gold. That's the important factor. Every Gaian has the ability to earn as much gold as any other.

---------------------------

Summary: Virtual inflation does not equate to real-world inflation. The inflation on Gaia is a non issue in regards to... Doing anything differently than we have been since the beginning.

As a side note: Cash sales. People don't seem to like them. Except the reason Gaia pushes them is because they sell, so people obviously do like them.

So what are your views on the subject?
Am I wrong? Can you chime in with why?
Is the amount of gold in the system and the cost of things just going to rise to comically large numbers?
Where do you see Gaia's cash sales going?

Take note: I'm open to real conversation. I'm not trying to pull a "I'm right and you're wrong" here. Talk with me:3

[sterek]

I would agree if it wasn't for the majority of users not having any assets they want to liquidate. What good is it to be worth billions if I don't intend to sell my items? There's more gold in the system. It doesn't mean that every user has more gold on an individual basis. The very problem of the inflation is that the amount of gold we earn (by posting, voting, playing games, etc.) is not proportional to increased cost of the items in the Marketplace. Gaia was never a market-centered website; it was a community that rewarded users for their involvement, hence the gold received for just browsing the site. That's why newbies can't keep up.

[Haruchoo]

Here's the problem though, the ways to earn gold without gc haven't changed. It used to be easier to get the new mc through booty grab or zOMG. It's practically impossible to make 100 mill necessary for an mc for any new user without gc, having art capabilities, or gold/items to begin with.

[J 4 C K]

sterek

I would agree if it wasn't for the majority of users not having any assets they want to liquidate. What good is it to be worth billions if I don't intend to sell my items? There's more gold in the system. It doesn't mean that every user has more gold on an individual basis. The very problem of the inflation is that the amount of gold we earn (by posting, voting, playing games, etc.) is not proportional to increased cost of the items in the Marketplace. Gaia was never a market-centered website; it was a community that rewarded users for their involvement, hence the gold received for just browsing the site. That's why newbies can't keep up.

That's one of my points. The ability to simply earn gold is increased as well. I earned 100 cash playing videos silently in the background, bought a RIG, and got 50 million gold. I can make 50 million gold every day doing basically nothing. And all of that gold can be used to gain assets, which then can be used for further gain.

[OMFG Shushu]

Where did you earn 100 GC?
I cant even get to 10.

★ gaia_crown gaia_diamond gaia_crown ★

[J 4 C K]

Haruchoo

Here's the problem though, the ways to earn gold without gc haven't changed. It used to be easier to get the new mc through booty grab or zOMG. It's practically impossible to make 100 mill necessary for an mc for any new user without gc, having art capabilities, or gold/items to begin with.

Having profitable skills is something that you either have or don't. In a low gold environment, not getting payed for art is still a null. But like I pointed out a moment ago. Earning the Cash to get started and maintain your income is extraordinarily easy.

[J 4 C K]

OMFG No Shushu

Where did you ear 100 GC?
I cant even get to 10.

★ gaia_crown gaia_diamond gaia_crown ★

Literally just playing cash offer videos. If perhaps you can't earn as much as I have, you can still earn enough Cash for a RIG in less than a week.

[sterek]

J 4 C K

sterek

I would agree if it wasn't for the majority of users not having any assets they want to liquidate. What good is it to be worth billions if I don't intend to sell my items? There's more gold in the system. It doesn't mean that every user has more gold on an individual basis. The very problem of the inflation is that the amount of gold we earn (by posting, voting, playing games, etc.) is not proportional to increased cost of the items in the Marketplace. Gaia was never a market-centered website; it was a community that rewarded users for their involvement, hence the gold received for just browsing the site. That's why newbies can't keep up.

That's one of my points. The ability to simply earn gold is increased as well. I earned 100 cash playing videos silently in the background, bought a RIG, and got 50 million gold. I can make 50 million gold every day doing basically nothing. And all of that gold can be used to gain assets, which then can be used for further gain.

I brought this up in another thread, but the GC offers are off-limits for a good amount of users, myself included, due to area restrictions. Users living outside of the United States mostly have to stick to purchasing their GC, and most people don't want to invest any real money on a free website--understandably. Besides, the gold economy should be self-sufficient, and the fact that it isn't is a problem in itself.

[OMFG Shushu]

J 4 C K

OMFG No Shushu

Where did you ear 100 GC?
I cant even get to 10.

★ gaia_crown gaia_diamond gaia_crown ★

Literally just playing cash offer videos. If perhaps you can't earn as much as I have, you can still earn enough Cash for a RIG in less than a week.

after like 2 video offers my other offers stop working so thats like 3 gc a day.

★ gaia_crown gaia_diamond gaia_crown ★

[Denham]

The main thing that bothers me about it is that people, like myself, who used to earn gold playing BG can't do so anymore with any significance (1M in 10 days? Groan..) so it's a bit jarring having to find a new method of earning gold that doesn't involve BG or liquidating my invo. Otherwise, yeah, as far as I see most people are still in the same uh...classes? I guess as far as wealth. Everything is pretty much the same with extra zeros at the end.

[Day7]

J 4 C K

Haruchoo

Here's the problem though, the ways to earn gold without gc haven't changed. It used to be easier to get the new mc through booty grab or zOMG. It's practically impossible to make 100 mill necessary for an mc for any new user without gc, having art capabilities, or gold/items to begin with.

Having profitable skills is something that you either have or don't. In a low gold environment, not getting payed for art is still a null. But like I pointed out a moment ago. Earning the Cash to get started and maintain your income is extraordinarily easy.

To put that to a more recent example:
I came back in february with 25k gold
I now sit at well over 6bil pure and far more that in items
.. I didn't sell any of my original items to do that, either

[Haruchoo]

J 4 C K

Haruchoo

Here's the problem though, the ways to earn gold without gc haven't changed. It used to be easier to get the new mc through booty grab or zOMG. It's practically impossible to make 100 mill necessary for an mc for any new user without gc, having art capabilities, or gold/items to begin with.

Having profitable skills is something that you either have or don't. In a low gold environment, not getting payed for art is still a null. But like I pointed out a moment ago. Earning the Cash to get started and maintain your income is extraordinarily easy.

Not everyone can do the daily treat/cash offers. I use it sometimes, but it's annoying as hell because even after I watch the video, it doesn't grant at times. It's also a matter of opinion, on how easy it is to maintain income.

[J 4 C K]

sterek

J 4 C K

sterek

I would agree if it wasn't for the majority of users not having any assets they want to liquidate. What good is it to be worth billions if I don't intend to sell my items? There's more gold in the system. It doesn't mean that every user has more gold on an individual basis. The very problem of the inflation is that the amount of gold we earn (by posting, voting, playing games, etc.) is not proportional to increased cost of the items in the Marketplace. Gaia was never a market-centered website; it was a community that rewarded users for their involvement, hence the gold received for just browsing the site. That's why newbies can't keep up.

That's one of my points. The ability to simply earn gold is increased as well. I earned 100 cash playing videos silently in the background, bought a RIG, and got 50 million gold. I can make 50 million gold every day doing basically nothing. And all of that gold can be used to gain assets, which then can be used for further gain.

I brought this up in another thread, but the GC offers are off-limits for a good amount of users, myself included, due to area restrictions. Users living outside of the United States mostly have to stick to purchasing their GC, and most people don't want to invest any real money on a free website--understandably. Besides, the gold economy should be self-sufficient, and the fact that it isn't is a problem in itself.

Admittedly, the issue of global location is, well, an issue.

A self sufficient economy is a pipe dream for any society though. In real life, or in a game, trade is something that is worked or simply funded by higher powers. That's why the poor are poor and the rich are rich.

In the early days, it was hard to get started too. That's why questing has always been a thing.

[J 4 C K]

Haruchoo

J 4 C K

Haruchoo

Here's the problem though, the ways to earn gold without gc haven't changed. It used to be easier to get the new mc through booty grab or zOMG. It's practically impossible to make 100 mill necessary for an mc for any new user without gc, having art capabilities, or gold/items to begin with.

Having profitable skills is something that you either have or don't. In a low gold environment, not getting payed for art is still a null. But like I pointed out a moment ago. Earning the Cash to get started and maintain your income is extraordinarily easy.

Not everyone can do the daily treat/cash offers. I use it sometimes, but it's annoying as hell because even after I watch the video, it doesn't grant at times. It's also a matter of opinion, on how easy it is to maintain income.

Well, yes. Ease and the amount of profit someone makes is subjective. But that's the entire issue.

[ShadMaria4ever]

I live in the US and over half the video offers are broken now. I used to make a fair amount if I went at them diligently, but I can't anymore. When it comes to people outside the US, chance for video offers are even worse, so not everyone can rely on gc to make gold. And not everyone has the time to put in effort to make gold exchanging and vending.

Personally, I quit buying gc last year and now only exchange to earn gold. But we're coming to point where even 2b I have on hand isn't crap anymore. Just glad I got things I wanted most before it was too late.