Summary
The podcast delves into the economic dynamics of the online game EVE Online, highlighting its current state of self-imposed recession. Players have experienced an abundance of resources, which led to boredom and a lack of conflict within the game. In response, developers introduced an "age of scarcity," making resources harder to obtain while simultaneously increasing the costs of creating in-game assets like spaceships. This shift has resulted in significant price inflation, leading to a decline in active players as the cost of participation rises.
The discussion also touches on the concept of collector's items within the game, particularly rare ships awarded during annual tournaments. Unlike typical luxury goods, the value of these ships is influenced more by their performance in gameplay rather than their rarity. The podcast speculates on the potential implications if players were allowed to trade in-game assets for real money, suggesting that while it could create short-term chaos, it might stabilize the virtual economy in the long run. The conversation emphasizes the complexities of virtual economies and their parallels to real-world economic principles.
Show Notes
EVE Online's Self Imposed Economic Collapse - How Money WorksA few years ago the galaxy within EVE Online was facing a problem. Abundance. An abundance of materials, an abundance of fuel, an abundance of high paying income sources, and an abundance of safe space to harvest these materials, fuels and space dollars. Now while that might sound like a really good problem to have, (and it would be in the real world) It does cause some problems in a video game. The biggest problem simply being that is boring. Try playing GTA 5 with god mode hacks turned on, after punching some fighter jets out of the sky you are going to get bored pretty fast, and people WERE getting bored. The largest groups in EVE online were up until recently playing a game of “build as much as you possibly can so it becomes almost impossible for any smaller group to ever catch up”. #EVEOnline #Finance #HowMoneyWorks ___________________________________________________________________________ Part 1 - https://youtu.be/m6j_UsGJnkQ Part 2 - https://youtu.be/2t25bsqlTM8 Part 3 - https://youtu.be/ijhAILUNz_s Music by Epidemic Sound & Eve Online Original Soundtrack Sign Up Link (if you want to try out the game) - https://www.eveonline.com/signup?invc=ef33cafb-0aa2-4051-9f03-55dc800247c2 (This link gives both you and I rewards in the game)Follow to learn How Money Works.Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorksDisclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.
------------- Keywords: market crash, economics explained, financial education, mortgage crisis Learn more about your ad choices. Visit megaphone.fm/adchoices
More from How Money Works
Banking is Broken (And We May Not Be Able to Fix It) - How Money Works Sign up for my newsletter https://compoundeddaily.com 👈 Banking has become too complicated and too concentrated for it's own good and this could have serious impacts on us all. #Banking #Finance #HowMoneyWorks ___________________________________________________________________________ Support the channel on Patreon here - https://www.patreon.com/HowMoneyWorks ___________________________________________________________________________ Link To The Capitalists Discord where I hang out with other creators - https://discord.gg/8MeNJ7gfSR Music by Epidemic Sound ___________________________________________________________________________ Banking is an incredibly important industry which is based off a very simple concept. People with more money than they know what to do with can keep it in a safe secure institution which can then lend that money out to people who have big idea’s but not enough money to make them happen. They give a small incentive to the depositors, and charge a higher premium from the borrowers, making a profit for the service that they provide as a “financial intermediary” This system has become more complex over time with things like fractional reserve banking, and alternative capital sources, but if we strip all of that away we will still find that the heart of banking is this simple mechanism. For all of the hate that banks get, they can do a lot of good in an economy. To people who want a safe place to keep their money they offer an almost 100% guarantee that the money left with them will still be there, a day, a month, a century from when it was deposited. They also make that money readily accessible, online, over the phone, from a collection of ATM’s, or simply through a plastic debit card. To people that want to borrow money they are also the “go to” institution for a fair loan based on lending parameters developed over time. We may hate things like credit scores and employment checks, but it’s part of the reason why so many people are paying below 3% on their mortgages right now. Follow to learn How Money Works. Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorks Disclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out. - ------------------------------
Fraud Has Cost You Your Financial Future Click here https://bit.ly/HELLOMONEYDEC and get 65% off with my code HELLOMONEY if you’re in the US but wherever you’re watching from you will also get a very special discount as it’s valid internationally! Sign up for my newsletter https://compoundeddaily.com 👈 With the collapse of FTX, the conviction of Elizabeth Holmes and the widespread rejection of everything NFT all happening within the space of a month, financial fraud is once again big news, and it should be because it is costing you your financial future. This is not your imagination either, incidents of identity theft, wire fraud, investment scams, pump and dumps, Ponzi schemes, phishing attacks, and sophisticated hacks are all at all time highs. Fraud cost Americans a total of 5.8 BILLION dollars in 2021, and most trackers suggest that number will be even greater this year. these stories can be easy to ignore because the victims of these crimes often had to, frankly, be pretty stupid and financially illiterate to get caught up in them. Anybody who has been anywhere near the internet in the last 20 years should know by now you don’t send money to Nigerian princes with yahoo email accounts or corporate executives playing league of legends during an investor meeting. It’s all pretty common-sense stuff, and you might then incorrectly assume that the rise in fraud is of no concern to you. When you really think about it that 5.8 Billion dollar figure sounds bad, until you work out that that’s only $17.50 per American for an entire year, not to flex too hard but I have spent more on a Starbucks coffee before. It’s hard to see how such a small cost could be doing something as severe as costing young Americans their financial futures, but it is. So it’s time to learn How Money Works, to find out why you really need to start taking stories about fraud personally, even if you never think that you would be dumb enough to fall for these schemes yourself. #fraud #finance #business Edited By: Andrew Gonzales Music Courtesy of: Epidemic Sound Select Footage Courtesy of: Getty Images For sponsorship inquiries, please contact [email protected] All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind. Follow to learn How Money Works. Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorks Disclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out. - -------------------------
What Company Made Steve Jobs a Billionaire? - Hint: it Wasn't Apple! - How Money WorksSign up for my newsletter https://compoundeddaily.com 👈Steve jobs was worth an estimated 10.2 billion dollars at the time of his tragic death in late 2011, making him one of the wealthiest people in the world at the time.This will not come as a huge surprise to most of you, because after all he was the founder and CEO of Apple Computers, which went on to be the most valuable company in history, with a market capitalization today of over 2.2 trillion dollars.The thing is though, apple had very little to do with the fortune amassed by this legendary businessman.Apple was famously founded by Steve Jobs, Steve Wozniak and Ronald Wayne in a Californian garage in 1976.The business found it’s initial seed capital from jobs selling his Volkswagen Bus, and Wozniak selling a high end pocket calculator.These funds were then use to develop the apple one and subsequent apple two desktop computers, which introduced the world to a new way of interacting with these previously cumbersome machines.During this period, Ronald Wayne, the often forgotten third founder of apple computers would sell his share in the company for $800 dollars. Those same shares today even after dilution would be worth more than half a trillion dollars, but c'est la vieVideo Clips Used In Video-- https://www.youtube.com/watch?v=m4kn_GqGsKc - https://www.youtube.com/watch?v=QbbW8SO08XQDiscord I hang out on - https://discord.gg/MJGcTH6#SteveJobs #Billionaire #HowMoneyWorksAnswer to the mistake we made - The picture of the three founders does not actually include Ronald Wayne. In fact the man we crossed out was actually John Scully, the CEO that later ousted Jobs from the company.Follow to learn How Money Works.Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorksDisclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.
Has America Drowned Itself In "Luxury" Housing? To try everything Brilliant has to offer for free for a full 30 days, visit http://www.brilliant.org/howmoneyworks. You’ll also get 20% off an annual premium subscription. Sign up for our FREE newsletter! - https://www.compoundeddaily.com/ Books we recommend - https://howmoneyworkslibrary.com/ My Other Channel: @HowMoneyWorksUncut @HowHistoryWorks Edited By: Svibe Multimedia Studio Music Courtesy of: Epidemic Sound Select Footage Courtesy of: Getty Images 📩 Business Inquiries ➡️ [email protected] Sign up for our newsletter https://compoundeddaily.com 👈 All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind. #housingmarket #realestate #money So the solution to the problem of unaffordable housing seems so simple right? Just build more houses! Well we have been… New construction is approaching the highest rate it has been since the 2008 crash, and that's DESPITE record high construction costs that came about because of disrupted supply chains. The problem has been… if we were building the right KIND of housing. As costs rose and margins shrank, the only kind of property that remained profitable to build was LUXURY property… and now we have found ourselves in a strange situation… We might have too many houses. Now I know what you’re thinking, sounds great right? Wrong! Despite all of this new development, we are still short about 4 million homes by most estimates, and if developers can’t sell the “luxury” homes they have already built, it’s much less likely they will build the other homes we actually need. Follow to learn How Money Works. Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorks Disclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out. - -------------------------
Was Any Of This Actually Legal? Follow to learn How Money Works. Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorks Disclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out. -----