Quote (Khrushchev @ Tue, 22 Jul 2008, 09:26)
How is fg not liquid? Go back to economics class, liquidity is the ability to move your assets from one investment to another, ie from one game to another, ie EVE ISK is worthless for WoW, nobody will trade WoW vs ISK, and it goes on and on for all games; FG is the better deal, REGARDLESS of what the market puts its value at, as it is not a static value per game, but it is determined by the market, so when weighing it against a dollar spent in any other game it is always best to take into account which asset is more liquid. It is a barter system vs representational currency, and our representational currency, forum gold, much like the US Dollar, America's representational currency, is more valuable than any in game currency on a strictly unbiased comparison of usage. The market decides everything else, FG is worth what people will trade for it bearing in mind its usefulness and liquidity, it is a better buy dollar for dollar than ISK is, therefore any arguement between ISK purchased with money and FG is invalid, and any suggestion whatsoever that ISK is more useful than FG is absolutely absurd.
e: and i'm not saying you are a boring person, i'm saying that FG might be less valuable than ISK ONLY to someone who plays nothing BUT EVE
I disagree with this. Your definition of liquidity is in my opinion not a good one. The system that you refer to (and therefore I shall ask you to go back to economics class) is a system based on a single currency reference (here fg). It's the exact system that was abolished at Bretton Woods in 1944. At the time, all world currencies were based on a dollar/gold conversion rate.
Today, we have an economy based on floatable rates. Yen can be valued directly in Euro, in Dollar, in Pound, in Dirham, etc. Luckily for us we do not rely on a system where people think one currency is the base of the economy. Only americans still think like that today (and we see where it leads them).
It's the same for Forum Gold. Wow gold doesn't need fg to find its equivalence in ISK or in GwG. It finds its own equivalence through the numerous sites selling it, and they don't only sell it in dollars, but in euros, in pounds, in yens, etc.
Therefore, anyone that wishes to convert Wow gold into GwG can choose to do so through the fg system. From that point of view Fg has its utility. But don't come talking about economics and telling me to go back to economic class. Because the system as you describe it is a 100 year old system that every single country in the world has given up on.
Think Floatable Rates, and you'll see that Fg is only a tool for conversion.
As for the value of each Game Gold, we culd go into details to great lengths. I for one consider that the maturity of players on EVE, the corporations that exist, the systems made for this game, Bank of Eve (from Ricdic), the ability to create shares for your corp and have a board of directors, have shareholders, etc.
All this makes the Isk in EVE much more valuable at any rate than the WOW gold, or Fg itself.
Games are very different from one another, but each game gold has the value its' own player give it.
If you play EVE, then don't cry about the high rates of fg:isk. You were very happy a few weeks/month ago to buy it at rates going all the way up to 5:1.
Price is now down to 3:1. You talk to me about economics ? There is an offer, there is a demand. Right now, we mostly have an offer. This pushes prices down a little bit, but it can't go down to a level that will create loss for the sellers.
Ratio is 3:1, people decide to value their gold more than the fg. That's life.
This post was edited by xX-shuriken-Xx on Jul 22 2008 03:35am