NameBucks: The Currency of the Future or a Timeshare Investment?

[vip-ip]

On one hand, NP$ are always decreasing in value due to inflation caused by a certain amount being produced every day. On the other, NP$ have made many transactions, totalling a lot of USD.

10-03-2005 7:34AM EST shows:

There have been 1763 successful exchange transactions for a total of 1726072 NP$

At a stable 0.017 rate, 1726072 np$ is almost $30,000, or $29,343 to be more precise.

So, are NP$ a valuable investment? Is it possible to collaborate to increase its value?
Let's all buy out as much np$ under 0.019 and create our own inflation, selling them a quarter a piece

Will that work?
Are NP$ backed by gold? Cash? Does RJ have $30k worth of gold to pay out in case something happens to our Bank Exchange here?

So many question.... Thursday morning

 

[deu12000]

NP$ are backed by diamonds, actually it's just one big one.

I think the price is inflated as-is, I'd rather the price goes down. It seems people don't adjust the price things are sold for with NP$ even when the rate is low. NP$ buying has also gotten me great deals on items where they wanted a lot more cash for it than NP$.

 

[IAmAllanShore]

For what it's worth, we're actually experiencing moderate deflation ATM.

Think of it this way:

2 months ago, .017 was the rule of the day, with some .016 and .015 rates. That means that to register a domain at 500 NP (to make the math easy) would cost $8.50

Now, when .017 is achieved less often, and .018 and .019 or higher tends to be the dominant offering price, a 500 NP domain would cost $9.50.

Basically, if you were going to buy $'s with $NP's now, your purchasing power of the $NP has risen because you need less NP's to buy $1.

So every $NP is now more expensive, meaning the purchasing power of each $NP held has actually gone UP.

Why does this happen?

a) More users mean more demand for $NP
b) More services on which $NP can be spent means a great supply of opportunities to reduce the amount of $NP's in circulation
c) And a generally optimistic outlook on the future value.

For more:
http://en.wikipedia.org/wiki/Deflation_(economics)

-Allan :gl:

 

[Mark]

On one hand, NP$ are always decreasing in value due to inflation caused by a certain amount being produced every day.

Actually - That is not correct :imho: Just a month ago - you could still buy them in the .015 Range occasionally in the exchange .... ATM the lowest is .017 and there are only 2 offers in the .018 and .019 range For sale. Most are in the .020 section .....

Also - People offering to buy in the exchange are now paying in the .016 --> .017 range now .... which is awesome to me. There may be a slight decrease the last week or so - But Overall I'd say things are looking Up and Great :tu:

 

[LeetPCUser]

Great question. Now I am wondering.

 

[Ben42]

Investing in currency (forex) is BIG business. I don't think we'll see NP's on the market anytime soon though, heh.

They have definetly been going up in value though. As Allan pointed out it wasn't that long ago the going rate was .015 to $1. They could be at .025 to $1 by mid next year. Before then though the NP bank would have to raise it rates because thats how much they cost to buy as many as you want!

(sorry, I'm a bit into investing) heh

 

[vip-ip]

Holy $#!7 current selling offers start at $0.020 and buying start at $0.017... inflation, I'm telling you!

 

[IAmAllanShore]

Holy $#!7 current selling offers start at $0.020 and buying start at $0.017... inflation, I'm telling you!

VIP... look at your quote from above:

On one hand, NP$ are always decreasing in value due to inflation caused by a certain amount being produced every day. On the other, NP$ have made many transactions, totalling a lot of USD.

NP$ are INcreasing in value.

Inflation would be if their purchasing power was actually decreasing. The purchasing value increasing is actually DEflation. More $NP in circulation is not sufficient to cause "inflation" when there is more demand for them as well, actually causing an INcrease in value/purchasing power.

See my links/explanation above.

-Allan