Welcome to Gaia! :: View User's Journal | Gaia Journals


View User's Journal

Subscribe to this Journal
Inane Wanderings
A blog about....well about....something. Really.
GC in the MP - The Average Buy Price Is Now A Lie
Or, how GC in the MP creates REALLY Artificial Inflation.

Let's take a closer look at how GC in the MP has been implemented, and some of the effects of that implementation. I already went over how it's robbing Gaia of actual money spent and how it's contributing to inflation by creating gold out of nothing.

Let's say I'm a GC buyer, and I'm looking in the MP for an item we'll call Final Unobtanium, which I'm making up out of thin air (but if you have a ticket and want to create an item named that, be my guest, but give me one, ok?). Before GC was used in the MP, Final Unobtanium was going for an average price of 5000 gg.

However, none of the listings at 5000 gg have a GC option. The sellers, for whatever reasons, decided they didn't want that option on their listings. There's only one listing that has a GC option - and it's listed at a ridiculous 50,000,000 gg.

But at the current GC to gg exchange rate, that's 1 GC. I snap it up for that 1 GC.

However, the MP reports that it was sold for 50,000,000 gg.


While the seller did get his 50,000,000 gg (less 5% MP tax, but that makes the numbers messier, so let's just say it's a given, ok?), it wasn't from the buyer. NO ONE ACTUALLY BOUGHT AN ITEM THAT WAS SELLING FOR 5000 gg for 50,000,000 gg. But that's the number that's going to be averaged in to the Average Buy Price, sending it soaring artificially higher.

Artificially because again, no buyer is buying that item for that amount of gold.

What's going to happen the next time someone lists a Final Unobtanium in the MP? They're going to look at the Average Buy Price, see it's jumped from 5000 gg to oh, let's say 50000 gg, and list at the average.

Only Gaia itself is buying at that inflated price. No one else is. They're using cash, and they're using it at an exchange rate that has nothing to do with reality.

GC buyers don't care what the gg price is. They only care what the GC price is. So they're not buying the item with the LMP, unless it also has a GC option. If it doesn't, they're going to be buying the more expensive ones. Which artificially drives up the average price or items, pumps more gold into the economy, and kicks up the cycle of inflation again.

There's more I want to expound upon the exchange rate and what inflation is and isn't.

Gaia Cash in the MP - Part 1
So Gaia's "experimenting" with allowing players to purchase items in the MP from other players using Gaia Cash.

Here's how it works, for those who don't read announcements: The seller of the item sets the gold price, and checks if it can be bought for Gaia Cash. If it can, then Gaia sets the exchange rate and adds the amount of GC that the item will be bought for to the listing.

The buyer can buy the item with gold (at the seller's gold price) or with GC. If the buyer uses gold, the transaction goes down like it always has. However, if the buyer chooses to buy with GC, what happens is that the GC goes to Gaia. Gaia then gives the seller the amount of gold the item was listed for (minus the 5% MP tax, of course).

Buyer gets the item, seller gets the same amount of gold no matter if the buyer used GC or gold.

But where does this gold that Gaia is giving the seller come from?

Why, out of thin air, of course. Gaia, Inc. wills it to exist, and so it does. This whole scheme is nothing but one huge distributed gold generator. And if you think inflation ran rampant before, you ain't seen nothing yet.

Let's look at some actual purchases I made during the first experiment. I went after fish, because hey, who doesn't need more Aquarium Fish, and I've worked with them enough to be quite comfortable with their basic numbers.

Here's a spreadsheet of what I bought and for how much:

The first column is what I bought. The second column is the GC I paid for it. The third column is the amount of gold that the Store Log reported the item was sold for.

Couple of things to note:

During the first experiment, items that were near the 50M border were rounded up. Yes, I wrote down how much GC I spent on each when I realized that it was NOT reported in my Store Log of what I bought.

The turtle has a 0 GC price because it's only available for gold in Phin Phang. It really doesn't change anything.

No matter what the Store Log says, not one Gaia Gold was spent by me on these fish. My Gold amount was not touched; I still have it all.

So I spent 90 GC and generated 4 Billion Gold. Yup, all that gold that went to the sellers (minus the 5% tax) was created POOF by Gaia.

And in return I got over $80 of fish for under a buck. (Technically speaking. I haven't given Gaia one red cent of my real world money since that incident at Christmas several years ago.)

Moreover, while I was prowling the MP, I was running commercials in the background watching videos, and I MADE BACK ALL THE GC I SPENT.

I admit I was sitting here giggling like a schoolgirl while I was futzing around with all this stuff. I basically got something for nothing, while rooking Gaia out of $79.68 of real money. Yes, I know they get something from the commercial running, but I don't believe for a minute they made $79.68 on it.

I'll go into how this is going to create truly artificial price inflation later. I'm out of time today.

Community Member
« Prev Set | Next Set »
Archive | Home

  • 07/05/15 to 06/28/15 (2)
  • 06/14/15 to 06/07/15 (1)
  • 04/26/15 to 04/19/15 (1)
  • 03/08/15 to 03/01/15 (1)
  • 03/01/15 to 02/22/15 (1)
  • 01/25/15 to 01/18/15 (2)
  • 01/18/15 to 01/11/15 (1)
  • 01/04/15 to 12/28/14 (3)
  • 12/28/14 to 12/21/14 (1)
  • 12/07/14 to 11/30/14 (1)

    Manage Your Items
    Other Stuff
    Get GCash
    Get Items
    More Items
    Where Everyone Hangs Out
    Other Community Areas
    Virtual Spaces
    Fun Stuff
    Gaia's Games