I do not GDKP and am sort of agnostic about it. However, I have seen all sorts of claims about the impact of the GDKP bans - things like blues will be 1000g on the AH due to the GDKP ban.
Whether GDKP happens or not inflation is going to be a problem on SoD servers. Inflation occurs when there is a lot of gold circulating and not enough gold sinks.
Usually at level 25 I have very little gold and often can’t get my mount until level 41 or 42. Because of gold bonuses for quests at 25 and the weeks at the current max level I have way more gold than I have ever had at 25. The same applies to people I play with.
That means even without gold sellers adding to the circulating gold there will be a lot of inflation on SoD servers. GDKP is not the cause of inflation - adding to gold supply is.
In normal era servers the gold sink of an epic mount means for people who want to GDKP at 60 and need gold, gold buying is a choice way too many make and for a period gold sellers have a lucrative market. On SoD servers, the amount of gold they inject will have less impact until level 60.
The auction house and GDKP serve to circulate gold. They do not add to the total gold supply. Buying gold does add to the gold supply. Inflation is always going to happen - gold buying makes it happen faster and rise more steeply.
The biggest impact of GDKP is on the distribution of gold. It helps some players get very rich. If they are connected to gold sellers it gets recirculated - keeping gold supply the same. If they hang onto it then ultimately it diminishes the amount of circulating gold.
So if blues become 1000g on the AH it will be due to gold buying and the more rapid accumulation of gold by players. It will not be due to the GDKP ban.
2 Likes
So the problem when people say ‘inflation’ they tend not to elaborate what form of inflation this is. This could be inflation triggered by supply and demand, inflation due to production issues, or inflation due to hyperinflation (oversaturation of currency in circulation).
What RMT/Gold Sellers do is cause Hyperinflation. It adds more gold than the economy needs and thereby raises prices because there is more money to throw at items.
For example, when people get a stimulus check during tax season, some businesses may raise prices on goods because there is an expectation of extra money in circulation over the next few months.
The correlation people see with GDKP is that it encourages RMT to ramp up gold generation/production (inflation by production) and then floods the market with far more gold than normally would or should be (hyperinflation). THIS causes the increase in item prices. This is why people find issue with GDKP and find that it is, in part, one aspect of the problem.
(I am just noting why GDKP is viewed poorly by some, if not most, and why you’re seeing this subsequent ban on it. I care not either way because Chaos Bolt has limited/minimal GDKPers compared to other servers because the community doesn’t use it as much as other servers)
I saw that - it’s true there will be a lot of inflation in p2. The sort of inflation caused by too much gold in the economy - from players having extra (higher gold rewards from quests at 25 and a few months at 25), and from RMT having already pumped more gold into the economy. This will happen whether GDKP is banned or not.
But I’m sure in two months when inflation has become a problem the GDKP ban will be considered the problem that caused it. The GDKP ban is likely to decrease the demand for buying gold which may have a slight impact on the total gold circulating.
The post you’ve linked suggest bots will change to AH and resource farming (which they do now and have always done). While there will be elevated prices on blue and epic boes - a market the bots will try to corner - this will happen anyway. The new raid drops are often significantly better than many of these, so the demand may not be as great as it used to be.