and no one could possibly benefit from that
especially not the people who stockpiled before the tax increase
but w/e
im sat on 65000 nu-plex
might as well increase the broker fee to 50%
and screw the players who cant afford it right?
Unless you have a few dozen accounts you intend to plex for the length of the games survival?
I think CCP have made it quite plain that their role is not to protect speculators for their poor purchasing decisions.
If you have chosen to âinvestâ all your wealth in a commodity with a price that is clearly supported by rampant speculation, hooing to find a âgreater foolâ to sell to, then you may discover, there isnât one.
You may very well think that, do not be too upset if your plan to use Plex speculation becomes unhinged.
When every random, decides a commodity in the market is a foolproof way to get rich, and one joins in, then one discovers it isnât and is shown to be the fool, and they are the proof.
It is no coincidence that plex went through the roof after broker free Plex purchase orders became possible.
Other things have a minor effect, but in the main they are just noise.
Because it means fewer plex holding hoarders will exist long term, because the margin you make off each plex decreases.
Which long term means the artificial driving of the plex market will decrease.
CCP a few fanfests ago said most plex went through 3 or 4 people on the way to the person who actually used the plex. If instead the plex goes direct from buyer to user as a result of a large brokers fee specific for plex, the buyer actually ends up with a cheaper product overall in the long term.
Yes, this is an âifâ. And I donât do enough economics to make predictions on that sort of behaviour. But itâs a long term health vs short term effects thing.
Plex prices are supported and driven by speculation providing the vast majority of the market.
This forces prices above what would exist in a free market that doesnât have a mechanism to provide cost free speculative opportunities (I donât say risk free)
Once that synthetic exploit is removed, then the market balances to a price, reflecting actual demand for wealth storage and consumption.
Therefore it is CHEAPER for the little guy, and Speculators, do not benefit.
You might want to read the CSM minutes, those that havenât, and have large holdings, might find that an expensive mistake, and donât think it would be pre-announced to protect the foolish.
I wonât reply to you further, the forum is nagging me on answering you too much. You have a position to support, I can respect that.
Reality however somewhat disagrees.
Citadels (ie in perimeter) removed the only powerful restraint that existed, by making speculation free of cost. One would need to be delusional to think that would continue as an âaccidentalâ exploit forever.
Economics is all guesswork. There could be a market bubble and it could keep going up and pop then drop it down, or could stay at $1=100m=34plex, $15=1.5b=500plex. The real determining factor on plex prices is developer designed content.
If they keep adding content that is best with multiboxing such as incursions, mining, freighting, or isk farming then certainly the price will continue to rise. This is one of the reasons if your leaving the game for any large amount of time then liquidating your isk to plex will usually gain you money.
All in all, pay to play or play to pay. It is your choice how you spend your time.
If they really wanted to fix the plex rising problem then theyâd have to do something along the lines of removing players ability to resell bought plex from market. This way the plex market stabilizes and only people using plex will purchase plex.
Not suggesting they do anything here just laying out all the plex related forces.
Like this post. Speculation can actually be good thing. The typical view of speculation is actually a confused jumble of conspiracy nonsense and market manipulation. Note we have two terms, âspeculationâ and âmarket manipulationâ and no they are not synonyms, although to âAverage Joeâ that is often the case.
A speculator has information or thinks he has information that is not yet reflected in the market price. For example, if you have information about a particular commodity one might respond by buying or selling (short) futures with the anticipation of making a profit. By doing so, that information is not being reflected in the price. Speculators help the market by bringing this information into prices and adding liquidity to the market.
For example, suppose we have a commodity and in any given year the demand can be âhighâ or âlowâ based on probabilities P (demand is high) and Q where P + Q = 1. Now producers of this good do not know how much to make in any given year. They can produce the average, that is Px + Qx but in a âhighâ year theyâll have made too little and the price will go up. In a âlowâ year and theyâll produce too much and the price will drop. Enter the speculator, in the âlowâ years they can buy up the excess supply and drive up the price, but hold the good and sell it in the âhighâ year and thus, lower the price. In this case, the speculator can help smooth out the market and reduce volatility.
Of course, the average person will see the speculator buying high and selling low and will conclude they are up to no goodâŚdriving up the price in the âlowâ years for nefarious reasons. They will usually ignore them driving down price in the âhighâ years. People are often completely blinkered when they look at these things, just looking at the behavior that drives up the price. Add on something like spoilage and now the speculator is taking on risk. Suppose one year the demand is low, so the speculators buy up the excess anticipating that either in the next year or the year after theyâll sell the good. But if there is not a âhighâ year for the next two years (note we can substitute a more generic term, period, for year) then the speculator loses his investment. What is the chance that there is no âhighâ year? It is Q^2. Now unless Q is zeroâi.e. there can never be another âLowâ year, this is a positive number meaning that there is risk. Taking on risk is only done when there is a reward that justifies the risk.
Further, given the random nature of demand the speculator helps stabilize the market from the perspective of the suppliers. This will help prevent a boom-and-bust cycle that can exacerbate the effects of âHigh/Lowâ demand and also effects on employment in this market.
In short, there are plenty of reasons to view speculation as a good thing. The entire Chicago Mercantile Exchange is a huge haven to speculators and others in various markets that help stabilize things likeâŚfood production.
The casual dislike of speculators is based on little more than ignorance and/or sloppy thinking.
What does it mean to own a market?
I had so much volume and funds that I could empty the market of all volume on any given day I chose if needed. I could set the price and as long as it wasnât too high I would not see any competition that couldnât be easily squashed by dropping the price for a few days when they sold. (Which I would then buy theirs and remove mine)
It is possible and it consumes your every waking moment but I doubt any single player has that much power over plex instead, it is probably a group of players who are maintaining the price at a profit margin which they can each afford. This has nothing to do with maliciousness towards the consumer, itâs just business.
As for speculators, I know people who thought they could invest in beer because superbowl is coming up in a few months and lots of ppl drink beer. LOL needless to say these fools will cause surface waves but the deep will be the deep.
As for maliciousness towards plex buyers, that isnât it at all. The price can only increase steadily because the higher they sell then the higher they have to re-buy their stock. Buy high sell low type stuff doesnât work out so well when u have to flip in a smaller place and volume is harder to move and is risky the higher the price goes. Then you have to factor in tax but normally thatâs done post sales. After a while, you get a feel for what your profit margin is and the smaller that margin is then the more control you have over the market. Thus volume becomes money and your investment is safe from competition for the most part.
Why am I telling you this?
If there is a plex monopoly then ppl know how to get in on this profit margin will force prices down as they try to snuff you out but this is how you edge in on their game. The goal is to make them knee-jerk a drop in price and cause a tilt on all those speculators.
Then purchase up more plex and hold the price lower than it was prior. Welcome to the big leagues as the people you once feared as untouchable now have to compete at a lower game than what they were at and effectively lose a lot of value overnight.
⌠except that currently this decision does not look like âpoorâ.
There still people who buy and use plexes.
Maybe you are talking about post-â10% tax on plex transactionsâ? Then the story is totally different because if CCP changes the game then itâs not players fault. When CCP makes changes it should plan to not kill the economy.
I understand that thereâs too much ISK in game but what if CCP pushed back the problem with using new content?
Something like thereâs new area of space to be explored, and to get there we need a completelly new Stargate which is enormous expensive and can be build only by players donating ISK to it, sum of ISK would be so crazy that ISK ammount in game will drop drasticly and there will be only few weeks to donate, to encourage peps, top 10 alliances or corps bla bla who donated the most will have their banners on that new stargate (also that new area of space must be a complete secret, no one know whats in there, we only know its super duper)
âNew place to exploreâ is not enough to spend considerable amount of ISK. New space would need to be pretty rich to get enough interest from players.
And one more source of wealth is not needed i believe.
Can I still use the gate even if my banner isnât on it? If not, that space become really exclusive. If yes, then why the hell would I pay if someone else will definitely pay for it?