3 ms·
In MMO's they have a concept called a "gold sink" where in order to fight inflation they create very expensive things and methods/payments that essentially wast
by michaelbrave 5y ago
In MMO's they have a concept called a "gold sink" where in order to fight inflation they create very expensive things and methods/payments that essentially waste money to keep the economy from crashing.
If most money nowadays is calculated digitally (which it is, most transactions are spreadsheets and databases instead of actual cash or goods) and the way most new money that is created is created in similar fashion (it is). Then the constrains of money creation are limited to faith in the system, value speculation (mostly by other countries for what they can trade it for) and inflation. Most monetary systems crash due to overprinting of money and excess inflation which causes a lack of faith in the system. Having something akin to "Gold Sinks" is part of keeping things running, taxes are a perfect way to do that, though the distribution could use some tweaking to get better results, especially if one cares about wealth redistribution.