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+--- Thread: Crackhead economic treatise: Diamonds as currency backing standard? (/showthread.php?tid=5501)
Crackhead economic treatise: Diamonds as currency backing standard? - EspInquisition - 05-09-2020
Problem:
Diamonds have been used previously as a commodity currency, because it fits the criteria for one: low availability, high usefulness. Any kid with an xray script go straight for diamonds as they join, that's already the understood norm. Diamond gears would wear and break over time, and that helps fight inflation.
But update 1.14 essentially kicked diamonds off the throne as the ultimate commodity. Because now, diamond gears are so easily acquired from villagers. All it takes is literally a few stacks of pumpkins/melons to get a complete set of diamond gears by trading. As of now, single diamonds have little usage anymore. The only uses for diamonds now are: enchanting tables (already available in lots of public places), jukebox (1 diamond per jukebox, not a highly sought after item), and fireworks (ok this might be useful)
For servers based on competition, diamonds still hold some sort of value. But for us, a cooperative server, alternative resources are already easily accessible by all.
What can replace diamonds as the currency backing?
As of now, the best contender would be emeralds. Diamond gears and lots of useful items can be easily acquired by emeralds, making it function perfectly as a commodity. However, emerald's issue is the high production rate, therefore very susceptible to deflation.
But 1.16 introduces the perfect replacement, netherite. Truly limited and not easily farmable, production rate is controlled by the reset of resource nether. Also functions as a sought after commodity to upgrade diamond gears. Surely after some time, it will be abundant, but demand will also rise with supply.
Conclusion/Proposal
Netherite ingots should replace diamonds after 1.16 update to be the backing standard for currency
RE: Crackhead economic treatise: Diamonds as currency backing standard? - Penguin - 05-10-2020
Except we use an in game currency plugin....
RE: Crackhead economic treatise: Diamonds as currency backing standard? - EspInquisition - 05-10-2020
I'm talking about the price backing, aka $50 per diamond that we've been using. If we go full fiat you already know what happened, prior to the first reset
RE: Crackhead economic treatise: Diamonds as currency backing standard? - illogicalsong - 05-10-2020
Well, tbh I don't think having something extremely valuable as the base price thing is useful either. The only reason diamonds don't fluctuate in price is because of their absolute uselessness and the fact that the admin shop buys them at 50 a piece.
As an example, we have logs in the admin shop for what is it 25 a stack? But because people are willing to pay more for them they are worth so much more in player shops
That won't happen with diamonds for the exact reasons you listed
Diamonds have no use aside from their currency value
Netherrite is going to be far too rare and far too useful to have that same effect. People will be willing to pay way past whatever the price is set at because the demand will be very high and it's a very rare item unless they change the spawning rates completely.
I mean even irl gold and silver, arent useful for a ton of things, they have select things they're useful for but that's not why they're the backup.
Anyways
I don't think netherrite would work as a standard because people will pay way more than the standard price. Diamonds are good as a standard because nobody wants to offer more than the set price because they're useless.