The Dollar falls like a rock, will MA cope?

[Vedder]

Originally Posted by Vedder

Ehm...

Why should MA be harmed by the dropping dollar?
If anything it's GOOD for MA.
It doesn't cost MA anything to convert RL dollars to peds, and if we withdraw our peds, they have to pay us less.

Exactly. Giving you more PED doesn't cost MA anything.

But MA might have problems when the dollar INCREASE in value and they have to pay out.
Not when it drops.

[Usurper]

Originally Posted by Vedder

Exactly. Giving you more PED doesn't cost MA anything.

But MA might have problems when the dollar INCREASE in value and they have to pay out.
Not when it drops.

And that is exactly what i said.

[Dion Red Strike]

....

I'm gonna hafta disagree with you here Usurper.... And you know I like you

A few scenarios.. for those ecenomically challnged...


We change to Euro=ped....

How does MA compensate for the change? Do they say well, the current exchange rate is 10usd = 6.4 EUR (as of this post), so, 6.4 EUR = 100 ped... This would be possible, but it's very arbitrary to say 67.4 EUR = 100 ped... because tomorrow, we could say 5 EUR = 100 ped, or 8 EUR = 100 ped... this would cause the PED to become a variable exchange, which is not MA's plan... and not mine either... I didn't 'save' my money in EU so they could devalue it, I saved it so I can save it. I'm an american, I know 100 USD = 100 USD.... and 1000 ped = 100 USD. If you change it to EUR, randomly mind you, I don't know if my 1000 ped = 100USD or 5 USD... Currently, I'm positive I know what is what....

OR

We'll say 10 EUR = 100 ped, so, everyone's ped balance now hasta change, because, basically you just screwed Mindarks' financial statement... If I have $10 USD in game now (100 ped) and you change it to 10 euroes, you've just valued the EUR to USD as 1=1, which is obviously not true. The true exchange is 1USD = .64 EUR. So, to accurately 'fix' the statement, you would have to change everyones items and ped card to 64% of the current tt value.... I don't think this would work... people would be pissed...

-----

now lets say they did either scenario....

...and the dollar drops more.... woot, MA just made money (huh?)... did they really? Probably not, cuz all the US players (aka big stupid depositors, like me) stopped plaing because they had no clue if their money was safe any longer... not to mention, how much is all my stuff really worth..can I withdraw... how much will I withdraw??..

OR

...The dollar goes back up (which it will)... woot, I just made a lot of money.. yay, my 1000 ped is now worth 150 USD... I wonder which scenario from above MA chose....

I could go on and on about how radically BAD changing the exchange rate would be..... but I would start to get sillier than I already am...

suffice it to say, bad bad bad idea, was a bad idea a few weeks ago, still a bad idea now...

[Dion Red Strike]

o, and another thought...

right now, MA pays less to EU withdraws, but more for the deposits (kinda sorta o.O)....

That money is all gone by the time the dollars go back up anyhow....

We pay because EU people deposit same amount, but get more ped, so have more 'disposable' income, so willing to pay that extra Kped for that uber gun...

prices never come back down after dollar goes back up...

from an Americans point of view, bad stuff.. EU's view, good stuff...

MA's view, we don't really care....

[Vedder]

Originally Posted by Dion Red Strike

...
right now, MA pays less to EU withdraws, but more for the deposits (kinda sorta o.O)....
...

But but but...
MA doesn't pay for our deposits.


Ah nvm. *unsubscribes*

[A-Bomb]

Originally Posted by Dion Red Strike

I didn't 'save' my money in EU so they could devalue it, I saved it so I can save it.

This is pretty much not the case for the rest of the world tho . Lets suppose ive deposited 10k usd before the big crash of the USD, i would now have about 8k of those left by only the dollar exchange rate doing down the shitter.

So basically, every day i lose money... by not even playing, im still losing money.

(Example stated is based on the Swedish Krona)

Im not saying, yeah lets just instantly swap to Euros.. but this is something to take into consideration. Right now alot of us are bleeding alot of money because of the poor situation of the USD, and not to mention the horrible possible scenario where there are mass deposits now and then the dollar shoots back up. MAs bank account is not holding USD im pretty sure, but the Swedish currency Krona, so its a vulnerable point with these kinds of extreme fluctuations we currently see in the USD.

[Dion Red Strike]

Originally Posted by A-Bomb

This is pretty much not the case for the rest of the world tho . Lets suppose ive deposited 10k usd before the big crash of the USD, i would now have about 8k of those left by only the dollar exchange rate doing down the shitter.

So basically, every day i lose money... by not even playing, im still losing money.

(Example stated is based on the Swedish Krona)

Im not saying, yeah lets just instantly swap to Euros.. but this is something to take into consideration. Right now alot of us are bleeding alot of money because of the poor situation of the USD, and not to mention the horrible possible scenario where there are mass deposits now and then the dollar shoots back up. MAs bank account is not holding USD im pretty sure, but the Swedish currency Krona, so its a vulnerable point with these kinds of extreme fluctuations we currently see in the USD.

Ahh, but as a non-American player, you knew that was a possibility... You should never deposit when the dollar is strong

As an American, I could give a shit (as far as EU goes) wether the dollar is strong or weak... it's a mute point... 10 usd = 100 ped (once again, kinda sorta).

And, you are assuming the dollar will never rise again... silly people have silly thoughts, so my silly thought of the day... the dollar will turn into the mexican peso, and it'll always be valued at a super low rate compared to the rest of the world....

Now onto MA...

You'd be silly to think that they have all their egss in one basket (aka all money in SEK)... What I really want to know is how they pay their people.... is it in SEK, USD, or EU?

Their costs are mostly tied to the SEK, I'm sure (lights, phone, etc), but the're labor costs 'exposure' could be interesting if they pay in USD... but I'm sure they probably pay in SEK, because they're people would be pissed otherwise...

[onyx oZ Zombie]

holy f***, will everybody stop posting about this 8 times a day and do a f****** search already? don't you think it would be more constructive to add to a post that is already on this subject than to create yet another thread to clog the works?

Long live the dollar <> PED relationship

[alh]

As I explained in another of these threads a few days ago... MA actually _gain_ on the falling dollar!

They would be very stupid to keep much of their worth in $, there is no reason they would do that.

But what they do have to, is guarantee the ped value of the universe.
This they do in PED (= $)

So, when the dollar is falling, the guaranteed worth of the universe is falling, and this makes MA winning, because they don't keep the deposited money in $...

Also, the lower dollar makes non-US players deposit more, and I'm quite sure the majority of EU players are non-US.

There is only one possible "revenue stream" that would be lower, but this is highly debated, and that is the notion that MA get their income from "decay".
Since "decay" is also counted in PED, this value would lower.
But, that theory is pretty leaky...

Plus, increased activity because of increased deposits likely outweigh this factor.

[aridash]

Originally Posted by Usurper

I get more peds when i deposit.
If i withdraw later when the $ is stronger they have to dish out more since my peds has also increased in value.

no. the ped is fixed to the $ remember? the exposure to currency fluctuation is yours not MA's. so what you get in krona (or others in euro or £) is your problem. you deposit in $, you withdraw in $. they dont give you same amount of krona as you deposited.

The only exposure MA has is when they need to change $ for paying their bills in non $ currency and they also have a problem with their accounts not looking so great as they will be made up in Krona. But these are not our concern.

but then i am making an assumption opposite to others it seems...

Originally Posted by A-Bomb

MAs bank account is not holding USD im pretty sure, but the Swedish currency Krona, so its a vulnerable point with these kinds of extreme fluctuations we currently see in the USD.

i certainly hope deposits are held in $ account, with the operating cash exchanged as required. otherwise they would indeed be massively over exposed given they have a fixed exchange rate.