Wow tokens purchased for $20 from battlenet are not 1:1 ratio

[Gàldin-yojamba]

There are two different transactions occurring when you buy a token.

1. You buy it from the shop and pay your money.
2. The second transaction is them putting the money into the game when your token sells. Notice that the seller of the token and the buyer are never connected in the AH.

You are forgetting the third transaction - that of the player who used their ingame gold to buy a token. Where does that money go if blizz is generating the gold to the seller?

[Imonalott-kelthuzad]

just purchased token few minutes ago and put it up for sale and it took a few minutes for it to sell…if it was automatic why didnt I get gold automatically if its auto generated LOL…weird I had to wait for a buyer when Blizz buys it…/???

[Bonerover-stormreaver]

Where does that money go if blizz is generating the gold to the seller?

It fills the growing liability. You are a bit confused.

Thing is the liability grows faster then it can decrease. Soley for the reason that tokens are a guaranteed sale.

[Gàldin-yojamba]

weird I had to wait for a buyer when Blizz buys it…/???

Thats because blizz doesnt infact buy it - nor did they generate the gold you recieved for selling it.

[Bonerover-stormreaver]

Since both of you don’t understand economics I’ll help.

In a normal market, if theres 10 sellers and only 5 buyers, 5 sellers don’t get a sale.

Not the case here as all 10 tokens do in fact sell.

Because of this, Blizzard has to create gold for the other 5 coins that didn’t sell. They have a liability on this as it’s created wealth. They lower the price of the coins, use whats actual paid from the next 5 buyers margins to lower the liability, but they still have another 5 sellers to fulfill order.

Do you see the problem?

[Gàldin-yojamba]

Thing is the liability grows faster then it can decrease

So you are saying blizz has created a ‘gold reserve’ for future purchases/sales?

[Bonerover-stormreaver]

So you are saying blizz has created a ‘gold reserve’ for future purchases/sales

No. It’s a liability.

Unless all that repair money was put into this fund?

Plus if I use in game gold to buy a token, that gold goes to the other player. Not to Blizzard.

We’re talking about the tokens that aren’t purchased by players.

[Imonalott-kelthuzad]

lol explaining economics. 100% done right there LOL what a joke LOL.

[Lowphat-westfall]

Plus if I use in game gold to buy a token, that gold goes to the other player. Not to Blizzard.

No it doesn’t. And BLUE had confirmed this. They put the money into the account and it’s not connected to the AH at all.

Blizzard owns the currency and the token. The illusion is that it’s connected to another player. Blizzard chooses a price for the token and people buy it, and they choose a price to charge another player, and they pay it, and they choose the amount to give back to the seller, and they pay it.

[Imonalott-kelthuzad]

confirm with bluepost reference?

[Styls-herod]

I dont care about all that… just give me my token already.

Oh, I’ll buy mounts too if you added it blizzard. =)

[Bonerover-stormreaver]

Blizzard owns the currency and the token.

Makes sense. That’s how they skim the margins to try and lower that liability more then likely.

[Lowphat-westfall]

If you want to get technical though no gold or even items for that matter is ever truly “exchanged” like you’re thinking of. In order to move gold/items the game actually deletes them from the person giving it and creates it out of thin air for the person receiving it. It’s a nifty trick in game design to create the illusion of “trading”.

It’s on Blue tracker
~https://it.wowhead.com/bluetracker?topic=20764106396?poster=Chosen

[Imonalott-kelthuzad]

That isnt a bluepost?

[Gàldin-yojamba]

We’re talking about the tokens that aren’t purchased by players.

What tokens that arnt purchased by players?

[Bonerover-stormreaver]

Lord have mercy on this poor poor soul.

[Riselopeppe-bloodsail-buccaneers]

Derp. Money is constantly being added to the economy. Spawns. Instances. Etc.

[Bonerover-stormreaver]

Money is constantly being added to the economy.

Yup, people have to grind for that money.

It’s different when I just have to pull out my wallet for it.

[Gàldin-yojamba]

It’s different when I just have to pull out my wallet for it

But the gold you recieve from pulling your wallet out comes from players that grinded it in the first place.

[Britian-senjin (Britian)]

Your assumption is flawed only in that you ignore two things. 1. there is gold being sucked out of the game with folks buying the tokens for game time with in game gold. People have been playing this game for free for two years now by finding that gold and pulling it out of the economy. 2. Blizzard set that market. Blizzard decides how much that token is going to cost to buy in gold and the amount of gold that you can get for cash has fluctuated. It’ dynamic not static. It also happens to be a cash loss for the gold buyer. The sell price is $20, $5 less the the monthly sub for the game time being bought with the token. A third factor that you are not paying attention to is that Classic players are already using tokens. From by buying the tokens on their retail side of the account.

Someone with a greater then high school understanding of economics set this up. If you need to criticize be sure that you at least have level of mastery of the subject, witch you obviously don’t