The MyVMK Economy

[Zeppelin]

Do you think the economy on MyVMK is off to a good start, or to a rough start?
I'm sure the virtually wealthy are quite pleased with themselves. I mean, wasn't it genius of them to run clones?
From what I've gathered, it appears to me that traders rely on the "Game Stats" in order to determine how rare an item actually is. Just because something is rare, doesn't mean it is in demand though.
BUT, it seems as if the more scarce items become, their value goes up. Let's say for example: The Flip Hat.
There are currently 187 Flip Hat's in the game. This hat retired shortly after the game's initial beta release. Which is basically why there are so few in the game. Nobody honestly expected them to retire an item so soon. And because of this, nobody bothered to run clones in order to stock up on the item.
THIS was very smart on the Staff's part. This was the kick start to the MyVMK economy. People complained at first, but when it comes down to it--we're all greedy. The Flip Hat has always been a popular item. But it's value is SO high because of how few there are in the game, compared to some hat's like the Headdress(2527).
But what about the super rares from crates? Well those are high in value as well.

The other day I saw someone talking about how once the super rares get to around 200--that their value will go down, and be even worth LESS than the Flip Hat. So why do people say that an item's value isn't determined by it's rarity? Admit it or not, the less super rare's there are the MORE they are worth. The same goes for majority of popular items. Demand plays a huge factor too.

Well the truth of the matter is WE are destroying every item's value. Literally. By purchasing 6 of the same hat (like I'm sure people bought multiple's of the Headdress), you are ruining it's value.
For some reason people have the idea in their head that it'll give them a huge head start--and that they'll somehow benefit from it in the future. Really? So then why is it that the mickey ears are worth basically nothing? Because they were cheap, and people bought more than what they needed. There are 4402 in the game. THAT IS INSANE. And yet the mickey ears had such high demand back in the day. The Mickey Ear's I'm sure, are one of the most beloved hats in the game.

If you really believe than an item you purchase will actually be worth something later on, then why not just buy say maybe 2 or 3? That is, if you even care about the MyVMK economy.
By purchasing a ridiculous amount of an item, you are ruining it's value. Which, in turn, ruins your chance of joining the MyVMK wealthy. We're all greedy here folks, admit it.

 

[Monorail]

The economy is both extremely unstable and unpredictable. We've seen credits decrease in value due to a correlation with the key release, followed by an increase in value with new, more frequent releases. Keys, walls, and clocks have fluctuated majorly, along with a steady decrease in the demand for super-rares, leading to a decrease in value.

Ultimately, the economy is run solely on supply and demand. Not many are trading simply for profit, an aspect that creates a diverse market with maximum demand for more items.
Instead, we see that items with "worth" to some, or items that are "rare" by number, aren't to others simply because they don't want it. Not many people are Looking for firewalls or clocks for their super-rares because they aren't into furniture, whether they be rare or not.

Addressing the "rarity" thing, just because something is rare, does NOT mean it has "worth."

RARE =/= WORTH

 

[Princess_Stitch]

May I have a pair of Mickey Ears?
...just asking.

OK, I'll come back with a real post later...

 

[halebop]

The amount of cloned firewalls and Mickey ears is awful. It's sad to see items that was once so valued practically worth nothing.

 

[Monorail]

The amount of cloned firewalls and Mickey ears is awful. It's sad to see items that was once so valued practically worth nothing.

I think it's hard to assume that the value of these items is directly affected by cloning solely. Instead, I would argue that the decrease in value for the firewall is due to people not wanting furniture. This can also be seen with mickey ears seeing a recent increase in value due to new people only wanting clothing.

 

[Zeppelin]

I think it's hard to assume that the value of these items is directly affected by cloning solely. Instead, I would argue that the decrease in value for the firewall is due to people not wanting furniture. This can also be seen with mickey ears seeing a recent increase in value due to new people only wanting clothing.

Nobody wants mickey ears, because everyone has more than 1 pair.
Firewalls are always in demand to an extent. It just stinks to see it used as the game's currency.

 

[Monorail]

Nobody wants mickey ears, because everyone has more than 1 pair.
Firewalls are always in demand to an extent. It just stinks to see it used as the game's currency.

I know they're worth more than they were. People that are new actually want them, as most want retired clothing. Not worth much, but they still have some worth.

That's why I liked what they did with the flip, as well as the frying pan (kinda). It allows for almost a creation of tiers of worth, being as the number owned by people is almost random.

 

[Frinklebumper]

Many people, myself included, don't look at MyVMK's trading system as an "economy" at all. Trading is a means to an end, getting something you want that you don't have.

In all honesty, I don't base value on rarity whatsoever. (Well, that's kind of a lie... I guess I should say it's not the biggest factor). I trade for something when I want it. Just like how I never wanted the Gas Mask when it was super-rare because I thought it was butt-donkey ugly. And I'm not a big fan of the Blessed Shoes either, which is why I instantly traded them away.

And, while I know many people do this, I personally don't ever stock up on items I think are going to be rare. I can barely afford to buy things for myself.

 

[Monorail]

Many people, myself included, don't look at MyVMK's trading system as an "economy" at all. Trading is a means to an end, getting something you want that you don't have.

In all honesty, I don't base value on rarity whatsoever. (Well, that's kind of a lie... I guess I should say it's not the biggest factor). I trade for something when I want it. Just like how I never wanted the Gas Mask when it was super-rare because I thought it was butt-donkey ugly. And I'm not a big fan of the Blessed Shoes either, which is why I instantly traded them away.

And, while I know many people do this, I personally don't ever stock up on items I think are going to be rare. I can barely afford to buy things for myself.

This here is most peoples mentality.
Because the market is based on demand, the market cannot be predicted. The only thing we can use to predict the market is past trends on VMK, which are almost useless, as we've seen with the Minnie being more in demand than the Stitch.

 

[Zeppelin]

This here is most peoples mentality.
Because the market is based on demand, the market cannot be predicted. The only thing we can use to predict the market is past trends on VMK, which are almost useless, as we've seen with the Minnie being more in demand than the Stitch.

That is most definitely NOT everyone else's mentality. Otherwise we wouldn't have 4k mickey ears lol.

 

[Graham]

retire frying pan again
that sure as heck surprised everyone

 

[Princess_Stitch]

Nobody wants mickey ears, because everyone has more than 1 pair.
Firewalls are always in demand to an extent. It just stinks to see it used as the game's currency.

I don't have a pair.
Just saying...

My only hat is a headdress. I have bits and pieces of the yellow and green explorer and I have the Native American shirt/cowboy shoes. That's it. I don't have a princess dress, HM, witch outfit...and whatever other outfits have been released. I'd think I'm extremely "poor" by the current standards. I know it's my fault, though. I technically got a late start in the game and I'm not committed to grinding out credits. Now I fear I'll never catch up.

I desperately want these items for the sake of wearing and enjoying them. I'm a collector of items I find visually appealing and useful. The value doesn't mean much to me as I never cared for trading. It's painful to think I lost my chance at some very special items. Is there even a solution to this? I won't even be able to afford gingerbread pieces.

 

[Thrill]

I'm going to disagree with you here.

Every excess headdress is 800 credits out of the credit supply (1000 sale value - 200 resale value). Right now, the credit is incredibly inflated. This is largely the result of key harvesting causing a flood of credits to come into the economy. The thing is that hoarding isn't enough to keep the value of the credit afloat.


(I'm about to drop some serious macroeconomic wisdom here that actually has applications; as far as the health of the MyVMK economy, the following means little, but it is incredibly significant in the real-world economy.)

Keys and firewalls are quickly becoming the reserve currency of the game. What does this mean? Keys are valued because they can reliably hold their value. (It's kind of cyclical logic, but it's still logic.) Competing currencies, namely the credit, inflate correspondingly. People trading credit sprees have to offer more credits, so it is easier for other traders to get in store items. If the reference currency is the key, items valued by the credit are cheaper. (WAIT FOR IT!) This principle is exactly what China has been using for decades. They inflate their currency (the Yuan) so that Chinese goods are cheap for other countries. Meanwhile, the US Dollar is valued as a reserve currency. That's why the US imports seemingly everything from China: currency manipulation.

It's confusing, but it's real.

 

[mark]

i think its stupid how myvmk credits the items...how can one crate be 50 credits than another crate be 300! I thought WE were supposed to decide the whats "rare" -_- rage[SIZE=.5]but no... a snow man is worth 30k LIKE WHAT? I can barely get myself 10k magic -___- [/SIZE] rage

 

[Monorail]

That is most definitely NOT everyone else's mentality. Otherwise we wouldn't have 4k mickey ears lol.

I'm speaking in regards to now. It's why something being rare is not the main contributor to its worth. If you're really telling me that most people's mentality is to buy for profit, you haven't traded much.

 

[thesupersmartguy]

Value is perceived. The MyVMK "Economy" has been very interesting for me to study. I studied Economics at Harvard, and I have to say, from what I've seen things have mostly been done correctly by the developers of MyVMK in regards to establishing an actual economy. The only existing thing that upsets the economy is the advance notice when items are going to be retired. Retired = Rare to many people regardless how many of that actual item is in the game. In a real life situation some might consider this advance notice "Insider trading" as it allows those with means (Namely, Credits) to "Stock Up" on a particular item causing two actions to take place. One being it increases the number of that particular item in the game creating a decrease in overall value from a Stats point of view, and creates a "Monopoly" by allowing a select few to hold the majority of that particular item. The "Stats" page holds very little real data on the vast majority of items (Excluding the Stitch Hat, Green Flips Etc...) because again, a select group of people may hold the majority of what you see numbers wise.
In any event, it is a game. A fun game, but a game none the less. I trade for particular items I want, but I don't worry myself about what will be "Rare" a week down the road.
To that end, I would not suggest making any drastic changes to the way things operate currently. I will reevaluate it another month or two down the road and see how my opinion differs. Buy what you like and enjoy it.

 

[AmberDaze]

I never get involved in these discussions, but I wanted to just ask what does everyone consider "wealth?" One person's wealth may be different than someone else's. Does it depend on how many rare items they have? Does it depend on how many credits they have? Just curious.

~Days

 

[Alionette]

I never get involved in these discussions, but I wanted to just ask what does everyone consider "wealth?" One person's wealth may be different than someone else's. Does it depend on how many rare items they have? Does it depend on how many credits they have? Just curious.

~Days

I would think that since items have a value in credits, or possibly keys, you could convert all your items to that and compare how much you would have to everyone else.

 

[kalyee]

I never get involved in these discussions, but I wanted to just ask what does everyone consider "wealth?" One person's wealth may be different than someone else's. Does it depend on how many rare items they have? Does it depend on how many credits they have? Just curious.

~Days

It depends on who you ask. Wealth to some will be measured by what valuable items you have, because they're looking at wealth from a trading perspective - what could you get in the current market with what you have/what are you bringing to the table. Other look at it as the amount of rares/super rares that you own. Depending on what each person/the "economy" values the highest, that would determine your "wealth" in-game.

I personally don't care one way or another if I join the ranks of the MyVMK wealthy. I have what items - minus the snowmen ;_; - that have been released thus far that I enjoyed from VMK, and that's all I wanted. Spending all my time trading to try and climb up the steps of virtual wealthiness doesn't interest me - when I shut off my laptop, I'm still poor.

 

[iMystery]

I think this might be one of the issues of restarting an old, beloved game like VMK. Everyone already knows what everyone likes. We know Stitch hats are going to be high ticket items, we know green flips will be important, and whenever inferno magic comes out, well, forget about it. The Economy, or whatever you want to call it is already partially established just by what people are going off of from the old game. Even with there being so few Flip Hats, I'd say people still want the Stitch more. I just sort of wonder what would happen if new items were handed out before the old items, and what people would do about the value of things then.