ARR Gil Cap Reduction

[Wynn]

Few problems with that.

*When everyone has reduced gil, no one is going to want to pay the inflated 1.0 prices for things.

*Regardless of the denomination change, the community will have to re-evaluate the value of all items in 2.0. Most facets of the game are changing in one way or another, this will change how useful certain items are.

*New players will be making gil at the 2.0 rates, not the 1.0 rates. If people try to sell items at the 1.0 rates then they are losing out on business from all of the new players. They simply won't be able to afford those prices.

Prices may not come out to be exactly 1/10th of what they are now but they will be reduced to reflect the change. There are people out there who are already planning to use the 2.0 price rates so those that don't follow simply won't be able to sell anything.

All true. Even old players wouldn't be able to afford 1.0 prices in 2.0. Not unless they currently have hundreds of millions. But are those people really going to squander away all that wealth in 2.0 for some insanely priced items? Of course not. Wealthy people don't stay wealthy by chance.

Anyone who thinks they will be able to sell things in 2.0 for anywhere close to current prices is in for a very rude awakening.

[NoctisUmbra]

Oh look, that argument again.

Uhm... you don't need to be smart to not buy shit at old prices when you have 10% of the gil you used to. What happens when people don't buy? Things don't sell. Prices drop. New prices are found.

All it takes is for the smart people to drop their prices and everyone else will be forced to.

Do carry on though. I was starting to get worried that my sig would consist only of Dubont.

[Searious]

Can you get me some winning lotto numbers next time you're in the future?

[Rannie]

You do realize that the term Middle East refers to a group of countries from different Continents right? Which Turkey IS a European country.

http://en.wikipedia.org/wiki/Countries_of_Europe

[PandaTaru]

The troll offended because he's being trolled... just look at your sig hun, you'll find out who the real troll is. Mocking people because they see things differently than you do doesn't make you smarter, smarty.

[Alerith]

The troll offended because he's being trolled... just look at your sig hun, you'll find out who the real troll is. Mocking people because they see things differently than you do doesn't make you smarter, smarty.

Except this isn't a matter of opinion vs opinion. This is a matter of Fact vs Opinion, where Noctis is using the facts and people are refusing to understand.

[NoctisUmbra]

Offended? Hardly.

Amused perhaps.

[LemmingKingXXX]

remember, there's a substantial period of time between the closing of 1.0 and the beginning of 2.0, I don't think everyone's even going to remember what the prices used to be

[Ferth]

The cheapest items that people actually buy are probably going to go up in price. Speaking strictly in terms of percentages, those prices can seem to be hyper inflated. But using a 200g item as an example is not even remotely the same as using a 150,000,000 gil item.

And the most important thing that people seem to either choose to ignore or just not think about... is that prices for ultra cheap items fluctuate greatly in relative terms quite separate from changes to the value of the money in circulation. And those prices are pretty much purely dictated by the current supply of an item compared to the current demand for it.

Another very important thing to remember about your 200g silver ore is that the current vendor price for silver ore is 1500g. Following the global redenomination for gil that vendor price will be 150g. Even if the prices for something so cheap weren't going to fluctuate that much it would never exceed the vendor imposed price ceiling of 150g (atleast never very successfully.)

People seem to want to make two different arguments at the same time. The first being that they are somehow losing money in the 2.0 conversion, which just isn't true. When they can't make a case for that argument they jump to the argument that the new economy in 2.0 won't be a straight 1/10th conversion. Which is perfectly true and a valid argument, if anyone was actually arguing that it would be.

Many of us have used examples from the current economy because that is an easy point to relate to. That doesn't mean we believe the new economy will be completely the same, and any argument from that standpoint is weak, whichever side you happen to be arguing for.

So here are two statements that hopefully people can appreciate and understand:

The universal reduction in gil means everyone has the same relative wealth, just in a smaller number.

and

When 2.0 goes live the economies will be brand new and will need time to stabilize. (this statement is completely independent of the redenomination. Even if they were not changing gil at all it would still be true.)

You can then put those two statements together:

In 2.0 the economy will be brand new and will need time to stabilize, but you will still have the same relative wealth going in to this new economy.

[NoctisUmbra]

The cheapest items that people actually buy are probably going to go up in price. Speaking strictly in terms of percentages, those prices can seem to be hyper inflated. But using a 200g item as an example is not even remotely the same as using a 150,000,000 gil item.

And the most important thing that people seem to either choose to ignore or just not think about... is that prices for ultra cheap items fluctuate greatly in relative terms quite separate from changes to the value of the money in circulation. And those prices are pretty much purely dictated by the current supply of an item compared to the current demand for it.

Another very important thing to remember about your 200g silver ore is that the current vendor price for silver ore is 1500g. Following the global redenomination for gil that vendor price will be 150g. Even if the prices for something so cheap weren't going to fluctuate that much it would never exceed the vendor imposed price ceiling of 150g (atleast never very successfully.)

People seem to want to make two different arguments at the same time. The first being that they are somehow losing money in the 2.0 conversion, which just isn't true. When they can't make a case for that argument they jump to the argument that the new economy in 2.0 won't be a straight 1/10th conversion. Which is perfectly true and a valid argument, if anyone was actually arguing that it would be.

Many of us have used examples from the current economy because that is an easy point to relate to. That doesn't mean we believe the new economy will be completely the same, and any argument from that standpoint is weak, whichever side you happen to be arguing for.

So here are two statements that hopefully people can appreciate and understand:

The universal reduction in gil means everyone has the same relative wealth, just in a smaller number.

and

When 2.0 goes live the economies will be brand new and will need time to stabilize. (this statement is completely independent of the redenomination. Even if they were not changing gil at all it would still be true.)

You can then put those two statements together:

In 2.0 the economy will be brand new and will need time to stabilize, but you will still have the same relative wealth going in to this new economy.

Hit the nail right on the head.

So good to read some smart every once in a while.