So my friends and I are new to Diablo 3 and I recently got a goblin that opened a portal to a rainbow world. soon after I encountered another goblin that took me to a cow area where I used it to farm Paragon levels a bit. My friends think that I abused a bug in the game to cheat but when I look up info on it I see nothing about a bug or abuse of going into those portals. They said my drops would decrease for 2 days because I used the portals to exploit the game and I have noticed a decrease in good gear every since. I just want to know if this was a bug and if there is a negative side for going into the goblin portals.
Don’t worry, it is not an exploit. Rainbow goblins hardly ever spawn, but they are not a bug. In fact, you are very lucky for seeing one. About your gear, is just RNG. So don’t pay attention to them, these goblins and portals are designed like that. They even have the possibility to give you Cosmic Wings, a cosmetic item.
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You had some good luck.
Your friends don’t know what they are talking about.
The game is based on Random Number Generation (RNG) and every game session is unique.
What happens today has no effect on what will happen tomorrow.
Cause I told them that the Shire one you need to get into with the staff you craft but the Goblin one is rare but they still somehow think it affects my account negatively for 48 hours
They need to make some new tin foil hats 
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Was it a bug at first? cause maybe they looked at an old post or video
It is part of the game. You/they can look through the past Patch notes.
Goblin opening Not the Cow Level is a recent addition.
Ok though it seems kinda funny that I get 2 of those portals and then I stop getting legendary set drops like I was before
Sheer coincidence. Don’t get sucked into Confirmation Bias or the Gambler’s Fallacy.
Ok cause I made a Witch doctor and Im trying to get the Mundunugo set and Im not getting it 
unless it doesn drop in Torment 2
You won’t see large Legendary/Set drops until you get past Torment X.
You don’t even get guaranteed Infernal Machine drops until T4.
Ah so I guess the sets I was getting were beginners then? If so Im off to T10
Not exactly. You just get more frequent drops at higher levels.
The chance of any single item is still the same.
Once a character reaches 70, everything is available.
Below 70 is a different story.
Many items are tied to Character level and Class set items rarely drop below T1 (70) unless they roll with a reduced level requirement.
Ah ok thanks for the help
Even at 70, Class set items do not drop below T1 unless they come from Kadala or Upgrade Rare in the Cube.
Your best chance at getting Set gear is by running GRs and gambling with Kadala.
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Diablo III - Game Guide - Goblins
RAINBOW GOBLIN
A rare sight, Rainbow Goblins seem to belong to a rather different realm than other demons of the same family. Upon death, they drop ordinary loot, but also leave open a prismatic portal that leads not to The Vault, but to a fantastic and joyful realm called Whimsydale! You might even see a rainbow.
Portals left behind by Treasure Goblins may occasionally lead somewhere udderly ridiculous
This is what caused the portal to the Not The Cow Level (a bright red portal).
Yes, it’s all about luck. Although you can get your set pieces dropped below Torment X, you are more likely to get them when you get to Torment X or higher. As long as you play higher than Torment I, you can get your set pieces dropped from monsters, but you can get them through Kadala or Kanai’s Cube below Torment I. Actually I got the set I always use completely before reaching Torment IX, so if you play above Torment I you can get pieces dropped.
I have never gotten a cow level and a rainbow in the same gaming session. I’ve only had 1 rainbow gob this season. Rainbows are rare. A gob kill opening a portal to the cow level is also rare. All you needed was one taking you to greed and you’d have the tri-fecta.
I’ve had that before. Got a cow portal, then a vault, then a rainbow portal all in the same rainbow farming run. Needless to say, it’s a very rare event and doesn’t happen very often.