Join the new world

---

In economics, hyperinflation is inflation that is very high or out of control.

The main cause of hyperinflation is a massive and rapid increase in the amount of money that is not supported by a corresponding growth in gold. This creates an imbalance between the supply and demand of money. It also causes a rapid increase in spending which forces the price of gold to rise. Once inflation has become established, sellers sometimes try to reduce their risk by further increasing prices.



I'm going to do a play-by-play here, ignoring the fact there may (or may not) be a bot that buys goods, thereby increasing the supply of currency. I will also ignore the import/export trading on the Marketplace.

In the beginning, gold purchasing is limited to 10 per day. Holding more currency than what will buy 10 gold becomes almost senseless. Suppose you wanted to upgrade to Q5 without using your Mastercard, you would be required to hoard 10 gold per day for the 37 days leading up to the upgrade. This would mean that 10 gold is removed from circulation each day and the corresponding currency stays behind.

In light of this cap, some begin to sell their currency off every day to buy gold. This creates excess currency and a scarcity in gold (due to hoarding). As everyone is stocking up simultaneously, the excessive demand for gold depletes the available supply and we experience a sudden price increase.

Next, a 50% Upgrade bonus is launched. Everybody and their mother is now spending their hoarded gold reserves so they can upgrade their companies. Why? For those 3 days, the opportunity cost of not spending every 10 gold was 10 gold. Ok maybe that's a little confusing, but it was a no brainier for me. Anyone could spend 10 gold and effectively make 10 gold instantly. That is very attractive in my eyes.

Now that almost ALL the gold has been removed from circulation, the currency still exists. This creates such an imbalance that the price of gold increases again. Also, sometimes people perceive that the currency issuer is committed to rapid currency expansion, they mark up prices to cover the expected decay in the currency's value. To rectify the situation, the currency issuer must then accelerate its spending to cover these prices, which pushes the currency value down even faster than before. The issuer cannot "win" in this case, and the only solution is to abruptly stop expanding the currency. Unfortunately, the end of expansion can cause a severe financial shock to those using the currency as expectations are suddenly adjusted.

The counter-measure was running a 30% off gold discount in parallel with the company upgrades to simply replenish the gold supply. This catches on and people bring more gold back into circulation, but the hoarding created by the gold limit doesn't really promote people to refuel the market. Plus, one person can only sell off 10 gold per day. But there's an even bigger problem, the newly purchased gold intended to be brought into circulation can be doubled by it leaving circulation through company upgrades. So more upgrades take place, gold supply remains unchanged, prices remain high and now a multitude of higher quality companies exist.



Suddenly its like everyone's become Donald Trump overnight. Everyone's producing this that and the other thing at higher quality, making substantially more money every day. More money? I just said we already had too much, then it became way too much. Now we have more. I love money. Lets review where I can spend it. Food? No thanks I make my own. Weapons, no thanks I upgraded and make Q3's now. Whats left? Oil, no ticket company. Stone? no house company. Houses? redundant with respect to my excess in food supply. Sounds like the only thing I can buy is gold. I'm restricted to selling it with respect to the 10 gold limit, so I'll use all my company profits to buy gold every day, then I can buy more companies. I can use that to make more money to buy more gold. Then buy another company to make even more money. Then buy more companies to earn more money. Ok that's enough, you see where I'm going with this? I don't even want to do the math for you, or produce a fancy chart because I don't have the capabilities of graphing infinity. I've only counted that high once and it wasn't easy.

So anyways, back to hyperinflation. It effectively wipes out the purchasing power of savings, distorts the economy in favor of extreme consumption and hoarding of gold. It eventually causes the entire monetary base to flee the country, and makes the afflicted area worthless to investment.

Whenever change occurs we normally tend to focus on the obvious ways we are negatively affected. But there is one last measure that I cannot calculate which may in fact impede the inflation rate, that is the medals and rank up gold handouts. Suppose there was a massive eWorld population boom, where suddenly there is a massive influx in 'noob gold' handed out and brought into circulation. As noobs normally spend their gold to attain currency, they are effectively increasing the gold supply and reducing currency supply. So perhaps the admins decided enough was enough, people are to "gold rich" now, so its time to devalue it in a way that still allows people to be happy in one respect with the upgrades.

Personally I invite change, it allows me to regroup and strategize based on the newest conditions. This brings excitement to the game as its not the same old boring routine which keeps my interest in playing. Plus, where would the inspiration to write these articles come from? As always, I'm open to discussion here. Please share your thoughts.

Signed,



Brought to you by: