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Thursday, October 11, 2018

How scrip affects the spiral currency. (gold)

So when Pirate101 introduced scrip most people thought. "Cool! new stuff and new money!" But I thought, "How will this affect gold?". I've been meaning to do this post for awhile but never got to it. But now Is the perfect time. After some research which I used how bitcoin affects preestablished currency I found some shocking things. I used this study btw http://www.sciedu.ca/journal/index.php/afr/article/viewFile/11580/7121
So now I shall go over what I think. So basically what I inferred from that study and my own studies on scrip and gold I found that when you compare how much gold you get (you can go from 0 to 250000 pretty fast) and how long it takes you to get to max scrip is quite the difference. Scrip has been stated to be rather rare, which means as a currency, not counting it being an illegal currency has little affect on the economy of the spiral. However there is something that bugs me. Its that ships belonging to governments can carry scrip. And due to the amount that drops from them while little I doubt is contraband. So how does this affect gold? Simple, scrip while illegal is technically a new official spiral wide currency. And due to the fact of how easy it is to get gold and how hard it is to get scrip I estimate that since you can get max gold in mooshu (a tower run) yet it takes awhile to get 100 scrip from anywhere except underground fighting rings such as smugglers arena says this. If you have around 100 scrip you could trade it for max gold. Now, due to the fact that large amounts are found in illegal places such as the arena or smugglers cove house despite the lack of scrip elsewhere also says something. There is huge stockpiles of scrip. Now what does that mean? It means if scrip wasn't hoarded and kept secret like it is at the moment it would go down in value making the people who own most of it more poor and scrip only item prices going way up causing people not to use it anymore. This is over inflation. A good example is Germany after WWI, they printed so much money to pay their debts their money was pretty much worthless. Now what does this all mean? It means Scrip affects the spiral currency by cheating the system and making gold less valuable in the process. In reality in the spiral, Scrip is as plentiful as gold, however due to the underworld stockpiling it and keeping it secret it only seems more rare which makes it more valuable. So how can we combat this? first of all we need to do smugglers arena a ton and spend a ton more script. While I doubt that will change the game it would change the market irl. Because the more currency that goes around the less its worth. However when you buy more and the people in charge of scrip and regulating the amount that's out the script market will do better for a short period of time before scrip is as worthless as gold.
Now, I know my posts have gone down a bit in quality. And ill be the first to admit my excuse is lame. However here it is. Due to college and me working on a post a day for next month I don't really have time at the moment to do posts as good as they were. I'm trying to improve that as you can see in the post above but If you have any criticism let me know and Ill try and improve. Only one rule, make it constructive criticism. That means tell me what's wrong then how you think I can improve it! See you In the spiral!

-Jack

4 comments:

  1. Perfect piece of work you have done, this internet site
    is really cool with wonderful information.

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  2. Thank you! In this case I took a stretch, mainly because since its not an official currency it wouldn't affect gold. But in the scenario where it is, this is what I thought would go down. I love to do posts like these and while my quality went down for awhile I'm trying to give myself more time to bring it up again. Thank you again for the kind words and have a good day!

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  3. Having read this I thought it was rather enlightening.
    I appreciate you finding the time and effort to put this information together.
    I once again find myself spending way too much time both reading and commenting.
    But so what, it was still worthwhile!

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    Replies
    1. Thank you, I'm glad my posts are going back to being good. I took some stretches here and there and I'm not a economic expert so forgive any mistakes. I really do enjoy making these and am glad people like you think its worthwhile to read them. I'm still working on those posts for next month so for now quality might be average, but hopefully soon I will finish all of them! But once again thank you for the kind words and I hope you read again!

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