Market Discussions

There's a reason there's taxes on everything, it's to keep the market at a certain rate, because otherwise people could just shift tritanium prices and everything simply skyrockets.

In a lot of ways it's generated out of thin air, but think about all the ship losses and money that will never be regained from those losses. Money is just received and spent on lots of things, and it does keep the market in check just right.

There is an eve central bank, and they react if inflation occurs beyond a pre-determined value. They only intervene in the plex market at present, as the rest of eve is more just a simple barter system

Ebil central bankers

Yes this is ISK in and out... ISK money supply is properly growing around 10-15% per quarter in EVE.

The question asked is still if it is realistic to only have one electronic paper currency in EVE?

That is properly best since you are not commenting on the topic.

However I hope more mature players who wish to discuss the monetary implications of the currency regime of EVE will post their comments and suggestions here.

Great article.

Lets recap some of the quotes from the good dr.

No governments have, in the long run, been able to withstand the temptation of printing more money. It’s a really, really difficult temptation to withstand.

is ISK in EVE any different from real world money?
Dr Eyjó: No. No, there is absolutely no difference. Except for the fact that we don’t allow that money to exit EVE.

So which is a better currency then? In-game ISK or ‘Icelandic króna’ ISK? (red: or US Dollars)
I told you earlier that the ISK in EVE, we close it off in our world because we want to keep the rules through EVE.
(unfortunately Dr Eyjo dident answer this question in full)

RPS: I want to see what currencies are the best. I have here a selection of currencies. [Gets up and lays out seven ‘currencies’ on the seat] This is a dollar. I’ve got an Icelandic króna. A one pound coin. I think this one is a Russian ruble. Then this is, uh, play-money.
RPS: So which is the best one?
Dr Eyjó: The one that you trust the most in. The one that you believe will be, one year from now, something that you can purchase goods with.
The Russian ruble. I would not trust the Russian ruble compared to the dollar and the pound, simply because it’s under restrictions as well and is fluctuating [dismisses the ruble]. I would trust this one! [picks up paper marked ‘Interstellar Kredit’]
RPS: The most!?
Dr Eyjó: Yes. Because this is the one I have control over and I know in a year’s time I can definitely buy a spaceship for it. In a year’s time the dollar might have reduced in value and in a year’s time the pound might have reduced in value.

So Dr. Eyjo chooses the ISK because he believes in it and think he can buy a spaceship for in 1 years time. He also chooses it over USD and GBP, but not over ISK (real) and RUB.
But he is contradicting himself as he do not like the ISK (real) and RUB due to the fact of currency restrictions. Restrictions which applies to game ISK aswell, just in an even more severe way. Also as he mention himself no government could withstand the temptation of printing in the long run but he believes CCP can withstand it.
Afterall as the Dr. points out money only have value because people believe in them.
So let me ask the readers this question, how many people belives in the US Dollar, GBP pound, ISK (real) or ISK (game)?
Billions of people believe in the US Dollar, you can use it to buy goods and services almost anywhere on the planet. Even outside of USA shop keepers might accept USD as payment.
British Pounds to lesser extent and ISK (real) almost no people would accept.
Finally how many people believe in ISK (game) and would accept them as payment? I dont think a lot, maybe only some of the 500k active players - hence I would choose ISK over the battery and play money , maybe even rubbles unless i have a trip planed to Russia. But I would never believe in them more than US Dollars or British Pounds.


But back to my original question which digs deeper than just the ISK.
Would only 1 currency exist in a future galaxy made up by 1000s of worlds and controlled by different factions which are at war?
And would this 1 currency be an electronic fiat money?

Although we may not have different and separate currencies for each faction its almost definitely true that your 100m ISK will buy a different amount of stuff in almost every region.

It could be said we have different currencies its just that they're all called ISK, and although our ISK balance never changes as we move through Eve what you can buy with that ISK certainly does.

Also you have scenarios where lets say Trit in Jita is more expensive than Hek yet a PLEX in Hek is more expensive than Jita. Due to things like this your ISK is already worth more or less depending on the region in which you're in and the item you wish to buy / sell.

I think the introduction of alternative currencies between factions would only cause confusion amongst the math challenged folks and allow those that have a handle on things like currency exchange to adversely take advantage of it further.

Its a nice idea and all but I think the practicalities of it are probably more of a headache for CCP that the benefits especially when those benefits already exist in terms of your 100m ISK being worth different amounts in different places.

/waffle off

Fly safe. o7

I agree with what you say.

The technical aspect is properly the strongest argument for not creating mulitple faction Currencies.
However this also lead to my argument that the ISK currency have severe weaknesses.

Firstly as described earlier it is very unlikely that a monetary union and/or fiscal union exists between enemy factions.
Lastly, have anyone ever wondered where they hold their ISK?
Its clearly not held in cash as you dont loose your isk when you get pod killed.
I dont think you have a debit card / or equivalent either since you dont have a banking relationship with an EVE NPC Bank.
Could it be a Bitcoin type of currency? possibly, but as proved CCP prints this currency and its injected into the economy via bounty prizes and mission rewards.
So the real question still stands, what is the EVE ISK?

ISK in EVE is a monetary unit used in interstellar trade. According to the backstory all the empires have their own currencies its just that interstellar trade is done through the ISK.

The small pile of ISK you start with is supposed to be your family heritage.

There have been in the past attempts in the forums to put some conversion ratio in place between current real money and the ISK from the lore perspective, but these attempts have failed in the past as you can find very large deviations. Starting with heavy metals like platinum, for example, which just cost peanuts per cubic meter and put it next to, for example, amarr wheat, slaver hounds or a frigate class vessel.

Money is a form of communication - Post Modernism 101