Hello and welcome to my market talk. This is a small talk on the current nstar market situation on the server (date made: 6 september 2015) So what's going on? So currently we are in a state of economic uncertainty. The prices of nstars are falling. Why is that? You ask. This is because of a fall in investment. Previously selling an nstar could fetch from $600 - $630. Due to these high prices, buisness owners put their prices up (I've seen people trying to sell nstars for $700!) when they're only trying to buy nstars dirt cheap. This hasn't changed much and a lot of shops are trying to cling on to profit. As a direct result of this shops offering good prices are selling out of nstars and relatively poorly priced shops don't get as much business. These high buying prices and low selling price are only accelerating the price fall. Now selling an nstar usually gets you around $525 - $580. What should businesses do? As a business, a good move currently is to close the price gap between your buying a selling price for nstars. Maybe buying nstars for $525 - $570 and selling them for $570 - $600 is a good idea. Remember, falls in demand mean you could lose money! In contrast it would in no way be a bad idea if you let nstar prices fall even more because that could increase your business and make the economy better as a whole. Letting the price sit at a price of around $400 - $500 seams fair enough as unless prices star rising again (for whatever reason) a sensible price could still be maintained. What should nstar consumers do? Right now, there is a few ways to react to this. You could buy cheap nstars in mass, then wait for the price to rise and sell them off, making a profit and then waiting for prices to fall again (this is a bit risky). Another way is to boycott the market altogether. This would mean that prices fall even more. You could do business as usual or you could sell nstars and nothing else, causing businesses to either go bust, stop buying nstars or cause a rise in prices. But we don't really want that at the moment. What could owners do? Owners and admins of the server could make the economy more stable by reducing the amount of money "printed" through they /sell command and such. They could set up an actual government with a real bank to stop inflation and the like. They could even limit new the amount of towns being built to stop inflation through selling ores and food from farms and also creating more of a market in real estate. I think this would all be beneficial to the server. Future prospects Through the collective acting of players on the server many things could happen. We could see a resting point for nstar prices or sharp deflation. Maybe we could have deflation across all markets. It is entirely possible that sharp inflation occurs. Whatever happens, we must stop this from becoming an economic crash. Thanks for reading and please reply with your thoughts!
A good read, perhaps change the font colour to something more read-able though; maybe a lighter grey or yellow.
Informative and interesting concept for you first day on the server. NStar prices are one of the best examples of our ECC economy at work. Usually the prices skyrocket when Star Tools are wanted or there is a medal contest between a couple, or a few users. The demand increases, the supply decreases and the prices rise! Perfection. The same happens at different times on experience, ores, quartz, and many other building materials. Enjoy your time on the server and just watch how things change over the next 6 months or year - that is the excitement of playing the best hard core economy server!
I love the idea of having a strong government to stabilize the economy. If the server had more control over the current issue of n-stars (and have control over inflation/deflation in the economy) the server would be stronger and stable which is good for both consumers and shop owners. (the Government at the moment could take n-stars out of the economy by buying them from shops as this would lower the supply of n-stars and help deflation)
This isn't real life- this is a virtual free market with set values that tend to be well below the market value. As this economic system works on ECC and doesn't have as many downsides as it may have in real life, it does not need a replacement and in my opinion, shouldn't be changed. ECC sets the starting values, you set the added worth. In most cases, this is a good amount higher than what the server offers. I'd ask you to think of the nether star market like a grocery store. When demand is high, whether from an increase in consumers or a crop shortage, the prices go up on that grocery. When demand is low, either from fruitful harvests or from lack of consumers, the price plummets. Same with nether stars. The recent event with nether star prices was caused by the addition of the nether star collector medal. That initially caused an increase in consumers, which led to a decrease in available nether stars. As a result, the price inflated, and peaked at around $650 before crashing down $100 over the course of about three weeks. In fact, I compare this new medal to the government giving money to large businesses in order to boost demand on their products. In this case, it worked for a little while, but ultimately failed. Luckily, it didn't cost the server anything (as it would in real life) - it only really cost the medal collectors and those who bought star tools during this time. Still, many nether star/star tool owners were able to make profits, whether from offering expensive payment plans or from selling what they collected at 10-15% of what they bought the stars at. I'd also honestly like to see the nether star price plummet further, if only because that would be an effect of having new voting sites as well as more users. I think it would be best to introduce one website at a time so that the price doesn't deflate at the rate that it has. In conclusion, I don't think we need a government to buy and sell nether stars, as it detracts from the power of the user market.
uhh... You don't know economics do you... If the server were to take out all of these nether stars it would lead to INFLATION since you're squeezing the supply. Economics 101 kid
Suburb you make an interesting point BUT being a left winger, I believe in government intervention. Even if my way of doing things was incorrect, we could work out another one.
I think maybe having them go up and down at a steady rate could be beneficial to the server, creating profit opportunities. The only thing is with this is businesses could lose money or even work around this fluctuation.
However, you see, the nether star market doesn't need regulation. ECC has regulations such as /sell hand prices for market that aren't purely backed on player demand. The nether star market is purely backed upon player demand thus not needing regular to mess with the market.
Actually just the opposite is true. The actual profit opportunities are much higher when the prices fluctuate solely on supply vs. demand instead of regulation. Of course there is also just as much chance for loss as the market itself balances out. That is what makes our economy strong. Everyone is welcome to sell their nstars to the server any time they feel the need to be regulated
yes but surely the problem at the moment is the fact that the n-star market is deflating. (I use the word problem loosely but a fluctuating market is not good!)
I see what you mean. My problem is with high inflation or rapid deflation. This can make it harder to start off economically (although that is quite easy due to the /sell command and voting). From the nature of how this economy works, inflation and fluctuation is obviously normal. What I want is just a steady economy that is more steady. While yes, this creates opportunities there is also chances of an economic crash or profit loss. And maybe the profit opportunity is good but this economy is unpredictable and maybe it could be. Oh and, yeah I know crashes aren't that serious here, you can easily get business back on track and it costs nothing but it does suck. Maybe we just need regulation of a different sort. What I want to achieve is just a very stable economy with low inflation / deflation rates. This could be hard to do though.
Lehon, this deflation is making prices slightly more realistic, I would be happy to see prices sitting at $400 - $500.
As a new player I'd like the sell price to stay around $600 for awhile. I'm a new player and I greatly benefit from the daily voting income. Now, as to how this impacts the economy as a whole... I'll be watching this thread to learn more about economics!
Yes I liked the profit I made from that as well but business with nstars is that little bit harder. This was going to happen, not many people buy nstars at high prices. Thank though!
