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So high prices induce new supply in a market to relieve shortages and the “economy is in free fall”? Sounds like it is working as it should. Those with oversig

So high prices induce new supply in a market to relieve shortages and the “economy is in free fall”? Sounds like it is working as it should. Those with oversight fixing supply in response to price signals when the private system is unable to. Wouldn’t it be nice if those in charge of the economy in the real world made the same sort of intervention.

Gigachad 1y ago
The supply of digital knife skins is infinite and free. The only reason they hold any value at all is because a company artificially restricts them. Doesn’t really tie in to actual markets involving physical item.
- yard2010 1y ago
  Isn't it the same with USD to some extent?
  - chii 1y ago
    only to the extent that they are both artificial. The totality of USD _represents_ the totality of all resources that exist under the control of the USA (ala, the people, gov't, companies etc, as well as any natural resources). The counterstrike skins don't represent such real life physical resources.
    - tonyhart7 1y ago
      You retelling how money works on how money works comment USD is human created artificial item, as real as human believe that skins in video games worth something "The counterstrike skins don't represent such real life physical resources." it represend steam wallet currency
      - chii 1y ago
        my specific point is to claim that skins are not a currency - the crucial difference between things that are both artificial.
- weird-eye-issue 1y ago
  You literally just described fiat currency. Just change company to central bank or government.
- CrossVR 1y ago
  So a knife-themed cryptocurrency then?
- Frieren 1y ago
  > Doesn’t really tie in to actual markets involving physical item. - A designer brand has admitted to destroying its own products. Coach confirmed that it purposely ripped up bags that were returned to its stores, even if the bags were still in good condition. https://www.bbc.co.uk/newsround/58846711 https://www.bbc.co.uk/newsround/58846711 Monopolies and cartels are also well known for creating fake scarcity. Fake scarcity is bad for the economy and for consumers, only a few profit from fake scarcity at the cost of everybody else.
- nutjob2 1y ago
  You're forgetting the other side of the equation, demand. The reason they have value is the level of demand versus supply. The item has to have some real world value, even if that's just being able to show off. They're are plenty of things in very short supply, bit no one wants them.
- neilwilson 1y ago
  Not like, say, houses then. Or shares in Nvidia.
  - bloppe 1y ago
    Not really, but it's actually kinda like currency. Imagine if a government suddenly devalued all $500 bills into $100 bills, but every other denomination remained the same.
    - neilwilson 1y ago
      Not really the same is it. You are confusing a stock and a flow. Currency is exchanged for something material you have to give up. Government may indeed issue more currency, and does do so every day, but it is in exchange for something the private sector has that it wants for the public service. That isn’t a problem as tax is a percentage and operates as a geometric series - meaning that whatever government issues it gets back exactly the same - unless somebody along the way saves it. There has to be something available to buy in a currency for it to be issued. As we see in the game.
    - klustregrif 1y ago
      That’s not really what happens though. What happened was that 500$ bills where so rare in circulation that collectors started paying upwards of 20 100$ to get them. Valve went “yes the 500$ are too rare, we need to fix supply so we’ll start exchanging 5 100$ bills for one 500$ bill” This had catastrophic impact on people hoarding 500$ expecting their exchange value to remain at the elevated levels.

Gigachad 1y ago

The supply of digital knife skins is infinite and free. The only reason they hold any value at all is because a company artificially restricts them. Doesn’t really tie in to actual markets involving physical item.

yard2010 1y ago
Isn't it the same with USD to some extent?
- chii 1y ago
  only to the extent that they are both artificial. The totality of USD _represents_ the totality of all resources that exist under the control of the USA (ala, the people, gov't, companies etc, as well as any natural resources). The counterstrike skins don't represent such real life physical resources.
  - tonyhart7 1y ago
    You retelling how money works on how money works comment USD is human created artificial item, as real as human believe that skins in video games worth something "The counterstrike skins don't represent such real life physical resources." it represend steam wallet currency
    - chii 1y ago
      my specific point is to claim that skins are not a currency - the crucial difference between things that are both artificial.
weird-eye-issue 1y ago
You literally just described fiat currency. Just change company to central bank or government.
CrossVR 1y ago
So a knife-themed cryptocurrency then?
Frieren 1y ago
> Doesn’t really tie in to actual markets involving physical item. - A designer brand has admitted to destroying its own products. Coach confirmed that it purposely ripped up bags that were returned to its stores, even if the bags were still in good condition. https://www.bbc.co.uk/newsround/58846711 https://www.bbc.co.uk/newsround/58846711 Monopolies and cartels are also well known for creating fake scarcity. Fake scarcity is bad for the economy and for consumers, only a few profit from fake scarcity at the cost of everybody else.
nutjob2 1y ago
You're forgetting the other side of the equation, demand. The reason they have value is the level of demand versus supply. The item has to have some real world value, even if that's just being able to show off. They're are plenty of things in very short supply, bit no one wants them.
neilwilson 1y ago
Not like, say, houses then. Or shares in Nvidia.
- bloppe 1y ago
  Not really, but it's actually kinda like currency. Imagine if a government suddenly devalued all $500 bills into $100 bills, but every other denomination remained the same.
  - neilwilson 1y ago
    Not really the same is it. You are confusing a stock and a flow. Currency is exchanged for something material you have to give up. Government may indeed issue more currency, and does do so every day, but it is in exchange for something the private sector has that it wants for the public service. That isn’t a problem as tax is a percentage and operates as a geometric series - meaning that whatever government issues it gets back exactly the same - unless somebody along the way saves it. There has to be something available to buy in a currency for it to be issued. As we see in the game.
  - klustregrif 1y ago
    That’s not really what happens though. What happened was that 500$ bills where so rare in circulation that collectors started paying upwards of 20 100$ to get them. Valve went “yes the 500$ are too rare, we need to fix supply so we’ll start exchanging 5 100$ bills for one 500$ bill” This had catastrophic impact on people hoarding 500$ expecting their exchange value to remain at the elevated levels.