I understand IRL it can be more difficult to liquidate assets but in eve you can easily liquidate them so whats the point of collateral loans? Why dont people just sell their crap and then wont have the pay interest?
Selling big amounts of stuff maybe a pita, or crashing prices. Also illiquid stuff like AT ships or researched BPOs. We talking about loans >100B.
But what about smaller losns?
It’s just people replicating what they know of real life into virtual life. Habit, overcompensation, bias, etc.
So its like roleplay?
Depending on the loan size and your assets it can often make more sense to collateralize a loan than to liquidate.
Let’s say for example that I need 20b for a couple months. If I’ve got a set of researched capital component bpos that I know I’m not going to need for a little bit but will probably want in future then that makes perfect collateral. Sure I could liquidate them for what I need. But it would be more work to re-buy and research them later. And would take months to do so.
Behaviour psychology, so in a sense, yes. More on a subconscious level though (which compromises most of our behaviour really, less than 2% of what we do, think or feel is cognitively conscious).
It took CCP a few years and a few studies to figure it out in the early days, people always replicate established behaviour, but do so in interestingly different ways depending on distance to identification and association processes.
To keep it simple, because people don’t have an avatar they do not just compensate and replicate, they overcompensate Fits right in with the lore / roleplay constructs of immortality, distance to others, etc.
No, there is actually a good reason for this, it is not for roleplay.
Zachri is wrong in this aspect.
For example, lets say you have a battleship that is being sold for 1 billion isk on the market, but only has a buy order of 700 million.
You need only 700 million isk in order to do something, but if you sell your battleship, you sell it at a loss. You cant wait and dont have the paitence to fight against other people to sell your ship at the correct price.
So instead, you get a loan, at 700 mill, and use the ship as collateral.
Other reasons can include, fitted ships, i.e. ships with rigs, but you dont want to destroy the rigs and sell the ship at a loss, so you use as collateral. Skins, which are very volatile and often have large difference between sell and buy order prices, etc etc.
And of course, as people mentioned, blueprints that are researched.
There are valid reasons to do collateral loans.
Only if making ISK is roleplay in your opinion.
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