I really don't see the problem nether star inflation or deflation. It's purely based on supply and demand. Generally people dislike inflation because in real life high inflation is quite a bad thing because it reduces the purchasing power of consumers. But, in ECC it's way different. Unlike energy, food and household necessities that apply to inflation in real life, netherstars aren't really something with constant demand nor are they something that everyone buys. When you look at it, a large portion of people buying nether stars are rich, and they'll simply take the hit if the price increases. If anything, a higher nether star price might be good since it gives more money to less wealthy players who vote and sell their stars, such as builders. Also, let's not forget that thing we use nether stars to buy (Star tools) produce inflation by printing much more money than regular tools do. So maybe a higher nether star price could somewhat counter inflation by having less money printed since less people are getting star tools.
Very nice. I personally think that there must be more votes . Remember a year ago we had 6 votes and nstars where sold for around 550 eccdollars
Good point, maybe you're right. Maybe a separate voting reward is in order. We could have 2 votes with the other reward and 1 with nstars to counter inflation.
By the way, I am simply too lazy to read all of this. But from reading the beginning of the "So what's going on?" section I saw this. You said "The prices of nstars are falling. Why is that? You ask. This is because of a fall in demand due to high prices of nstars." One of the basics of Micro is that demand never changes due to prices. So that alone is wrong. Now maybe demand fell due to other things, but prices never cause demand to fall. Anyways, have a nice day.
Simple explanation:Eh too lazy to read every single comment. But, adding to what TM_iBeast said, he is correct in that price has no effect on demand. With that being said however, demand does in fact have an effect on price (whoever said said price had an effect on demand simply had the two switched around lol). Without re-explaining all the economic principles as many people have commented lol, long story short, the reason nstar prices reached as high as $700 was simply because somebody or multiple users were buying out all the nstars in the market (perhaps they were just wanting to save stars for a star tool OR they simply wanted the price to jump up for whatever reason and the only way they could do that was to buy out all the nstars) which basically means that they were high in demand. I have a few specific users in mind that I know were responsible for this movement but I will keep that classified. Now, prices are falling because those users are simply not buying nearly as many as they were before (perhaps those users who were saving nstars for a star tools finally got them and did not need anymore) which decreases the demand. Again, I am just explaining the broad outline of whats happening in the simplest way I can so people can understand. Supply also plays a HUFE role in this but for simplicity reasons, Ill leave that out for now. My Theory:Now with all that being said, I have a theory about stars that I would like to share. Feel free to agree/disagree but this is my theory. Lately I've noticed that the price of max tools has been dropping (ex: a pump axe used to be like what 12k? Now its like 8k give or take a k). Why? Well My theory is that this is because there are less and less people who have pumpkin axes. Pumpkin axes are not like food, they do not disappear or go away once used. Once they are crafted, they stay on the server pretty much forever unless a freak accident happens and it gets broken. Eventually, everyone on the server will have pumpkin axes which means the demand for them would only decrease which would only mean a decrease in price as well. This goes the same for all max tools (I just used a pumpkin axe as an example lol). Now again, obviously accidents do happen and they do break occasionally but I think you get the main point I'm trying to make. With all that being said, I believe that the same is and will happen with star tools and nstars (since their only purpose right now is to buy star tools). Im not saying this is going to happen over night because it won't. This is a very, VERY slow process simply because of how expensive these tools are. But as we speak, more star tools are being bought than they are being destroyed. Because of this, I believe that over time, nstars will only continue to gradually decrease in price. Again, yes there will be major spikes here and there as there is with all items, but in the big picture over time, it will decrease. The only way I see nstar prices to increase, is if either a new star tool is added, or a new use for nstars is added. P.S. This is what we like to call competition which actually helps keep prices down . You also suggested that BUSINESS OWNERS close the gaps between buy/sell price? I disagree. From a business standpoint, the main idea is to buy as low as possible and sell as high as possible, maximizing your profits. A good business owner will adjust their prices and "test" the market, it is up to them to find the magic numbers.
Spoiler: Huge text: Quote Simple explanation: Eh too lazy to read every single comment. But, adding to what TM_iBeast said, he is correct in that price has no effect on demand. With that being said however, demand does in fact have an effect on price (whoever said said price had an effect on demand simply had the two switched around lol). Without re-explaining all the economic principles as many people have commented lol, long story short, the reason nstar prices reached as high as $700 was simply because somebody or multiple users were buying out all the nstars in the market (perhaps they were just wanting to save stars for a star tool OR they simply wanted the price to jump up for whatever reason and the only way they could do that was to buy out all the nstars) which basically means that they were high in demand. I have a few specific users in mind that I know were responsible for this movement but I will keep that classified. Now, prices are falling because those users are simply not buying nearly as many as they were before (perhaps those users who were saving nstars for a star tools finally got them and did not need anymore) which decreases the demand. Again, I am just explaining the broad outline of whats happening in the simplest way I can so people can understand. Supply also plays a HUFE role in this but for simplicity reasons, Ill leave that out for now. My Theory: Now with all that being said, I have a theory about stars that I would like to share. Feel free to agree/disagree but this is my theory. Lately I've noticed that the price of max tools has been dropping (ex: a pump axe used to be like what 12k? Now its like 8k give or take a k). Why? Well My theory is that this is because there are less and less people who have pumpkin axes. Pumpkin axes are not like food, they do not disappear or go away once used. Once they are crafted, they stay on the server pretty much forever unless a freak accident happens and it gets broken. Eventually, everyone on the server will have pumpkin axes which means the demand for them would only decrease which would only mean a decrease in price as well. This goes the same for all max tools (I just used a pumpkin axe as an example lol). Now again, obviously accidents do happen and they do break occasionally but I think you get the main point I'm trying to make. With all that being said, I believe that the same is and will happen with star tools and nstars (since their only purpose right now is to buy star tools). Im not saying this is going to happen over night because it won't. This is a very, VERY slow process simply because of how expensive these tools are. But as we speak, more star tools are being bought than they are being destroyed. Because of this, I believe that over time, nstars will only continue to gradually decrease in price. Again, yes there will be major spikes here and there as there is with all items, but in the big picture over time, it will decrease. The only way I see nstar prices to increase, is if either a new star tool is added, or a new use for nstars is added. P.S. ↑ 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. This is what we like to call competition which actually helps keep prices down . You also suggested that BUSINESS OWNERS close the gaps between buy/sell price? I disagree. From a business standpoint, the main idea is to buy as low as possible and sell as high as possible, maximizing your profits. A good business owner will adjust their prices and "test" the market, it is up to them to find the magic numbers. Any how... I really do like your theory but only the fact is that the star tools prices are way to high, new users will not have them and old users quit off the server. @THCOOL
THCOOL, wow! Thank you for the big response. What I said about price affecting demand could be true. Think of this, would you buy one banana for £10 or $10? Thank you for clearing up the main reason of the price soar though. People should just have realistic prices to keep the natural fluctuation of prices at a slower rate (low inflation, low deflation).
I mentioned that the prices were very high and for this reason as I stated, it's a very long and slow process. Yes users quit, tools break, and server eats them, these are all reasons that make it a slow process. Those are also reasons that prices will never be free, eventually they will hit a low number, but will never hit $0. I appreciate your insight and thought on my theory and I love discussing and talking about it, this is simply just me trying my best to defend it Np but as much as you would like to think and it looks like that price affects demand...I'm sorry to say but It's still false. The reason it seems that way however is because people are making investments. As we just saw just a few weeks ago, nstars hit just under $700! And now they're like what $575 around? That's a huge difference. The only reason that people would buy more as prices are drop is simply because they're making a future investment. They are trying to buy as low as possible and sell high (they're betting that one day nstars will rise up to the high's they hit just a few weeks ago). I know multiple people who are saving up nstars for this reason and I have also been advised to do this, whoever for me personally, I just don't see nstars climbing back up anytime soon. Just my opinion lol.
You're not wrong there at all but prices must have even a tiny effect on the market. I guess if we see nstars like a stock then investing in it causes prices to go up and a slowdown in this investment causes a fall.
I remember one day there was some crazy panic in the nstar market a little over a year ago. I had 750 stars saved up that i bought for like 500 each and sold them for 825 each. Price fluctuation is fun and if you play it well u can make tons of money. That being said I would not mind having 1 more vote site added I think we need that.
Supply and Demand of NStars: Demand: I have previously mentioned that as the server progresses, StarTools would over time be a more common item. If everyone has a full set of StarTools, then there is no need for NStars. Most people on ECC have at least 1 StarTool, for the market they invested in. Due to that, the value of NStars have been decreased because they are growing irrelevant by the ECC Community. Supply: An Average of 1.04 Nether Stars is made per vote, thus, by your estimate, each vote is worth 602$ or so. NStars are provided by voting, voting increases the popularity of the server. The more popular the server becomes, the more people see the server. The more people see the server, the more people join the server. The more people join the server, the more votes there are, the more NStars there are. While it could be argued that this is providing more demand, demand for NStars mostly comes from those who are Mayor rank and above. The majority of people that join ECC do not stay actively subscribed to the server long enough to reach Mayor, thus supply is being added to the NStar market with little to no increase in demand. The only way out of this is until the population of ECC BOOMZ!, enough to where the population stays long enough to have gaining a StarTool through purchasing NStars in their close priority. So really, the market is in a bit of hiccup; the hiccup can go up or go down. Down being the market becomes no longer interested in NStars, and ECC loses all server marketing power, thus very little builders join the server. Up being that inflation occurs in the NStar market, leading for the advertising power of ECC to reach its peak, leading several new builders to join; from that point forward, the new builders vote for a source of income, the voting bringing even more new builders. Of the few that stay until mayor, they will grant demand in the NStar market. At this point, it is a matter of which of the two options the voters of ECC choose, that will influence the NStar market and the course of the server as a whole.
