The Currency of The Currency of EverquestEverquest

Platinum PiecesPlatinum Pieces

What is EverquestWhat is Everquest

MMORPG – MMORPG – Massively Multiplayer Online Massively Multiplayer Online GameGame

400,000+ Players Globally400,000+ Players Globally Virtual World – Virtual World –

Be a Adventurer, Blacksmith, Be a Adventurer, Blacksmith,

Role-player, Whatever Role-player, Whatever $12 Monthly Fee$12 Monthly Fee

The CurrencyThe Currency 4 Denominations4 Denominations Copper / Silver / Gold / PlatinumCopper / Silver / Gold / Platinum Semi-Common Expensive Items Semi-Common Expensive Items

Sometimes Have Universal ValuesSometimes Have Universal Values - FBSS / SMR / RBB- FBSS / SMR / RBB 5k 7k 10k Platinum Pieces5k 7k 10k Platinum Pieces Everything in-game is measured by Everything in-game is measured by

Platinum PiecesPlatinum Pieces Implemented by Everquest’s makers from Implemented by Everquest’s makers from

the game’s startthe game’s start

Obtaining Money and Obtaining Money and ItemsItems

Obtaining Money:Obtaining Money:

- Killing things that drop coins - Killing things that drop coins Primary way of putting new Primary way of putting new money into circulationmoney into circulation

- Crafting Item, Doing Quests- Crafting Item, Doing Quests

Slow, secondary waySlow, secondary way

Obtaining Money and Obtaining Money and ItemsItems

Obtaining Items:Obtaining Items:

Killing specific things, Doing Killing specific things, Doing QuestsQuests

Slower and harder to do than Slower and harder to do than getting moneygetting money

Storage of ValueStorage of Value

With each new expansion old items With each new expansion old items tend to drop dramatically in valuetend to drop dramatically in value

Items – Short Term Value, Items – Short Term Value, DepreciateDepreciate

Platinum – Long Term Value - Platinum – Long Term Value - PreferredPreferred

Similarities to Real MoneySimilarities to Real Money

Stored in virtual banksStored in virtual banks Retains value over timeRetains value over time Easily tradedEasily traded Fiat Money – No BackingFiat Money – No Backing DurableDurable Widely accepted in the issuing nationWidely accepted in the issuing nation Easily DivisibleEasily Divisible Amount in circulation is controlledAmount in circulation is controlled

Controlled Money SupplyControlled Money Supply

Money is Money is introducedintroduced through killing through killing things and crafting itemsthings and crafting items

Money is Money is removedremoved through players through players buying from computer-controlled buying from computer-controlled vendorsvendors

Often, players don’t buy enough Often, players don’t buy enough Money Going In > Money Going Money Going In > Money Going

OutOutInflationInflation

Removing Excess Money : Removing Excess Money : Money Sinks Money Sinks

One-Time ExpendituresOne-Time Expenditures

- Investing in skills, Teleporting - Investing in skills, Teleporting playersplayers

Consumable ItemsConsumable Items

- Food, Item coloring, Spell - Food, Item coloring, Spell componentscomponents

Effect : Destroys Large Chunks of Effect : Destroys Large Chunks of MoneyMoney

Large group of people (400,000+)Large group of people (400,000+)

Buying / Trading / Selling w/ Buying / Trading / Selling w/ Platinum!Platinum!

Happy and Healthy Virtual Happy and Healthy Virtual Currency!Currency!

Bad Sides Bad Sides Counterfeiting - “Duping”Counterfeiting - “Duping”

Creating a 1 to 1 copy of a Creating a 1 to 1 copy of a block of currencyblock of currency

Detection Detection Digital ID’s = Serial NumberDigital ID’s = Serial NumberDifficult to track downDifficult to track down

Scamming – Stealing, Fraud, Scamming – Stealing, Fraud, Identify TheftIdentify Theft

So WhatSo What

It is just a game right?It is just a game right?

Real World ImplicationsReal World Implications

Auctioning of items and moneyAuctioning of items and money

Ebay.comEbay.com

Playerauctions.comPlayerauctions.com

Real World ImplicationsReal World Implications

Actual Online StoresActual Online Stores

MySuperSales.comMySuperSales.com

IGE.comIGE.com

25 Items per Page * 30 Pages * 43 Servers = 32250 Items

Study by CastronovaStudy by Castronova

Exchange rateExchange rate1 Platinum = .0107 Dollars or 1 Penny or1 Platinum = .0107 Dollars or 1 Penny or

About 1 Japanese Yen About 1 Japanese Yen Players make $3.42/hourPlayers make $3.42/hour Overall, about $15,000/hour is Overall, about $15,000/hour is

createdcreated GNP = $135 MillionGNP = $135 Million Makes EQ 77Makes EQ 77thth richest nation richest nation

Study by CastronovaStudy by Castronova

Many people play over 80 hours/weekMany people play over 80 hours/week At $3.42/hour = $12,000 a yearAt $3.42/hour = $12,000 a year $12,000 is above poverty line in the $12,000 is above poverty line in the

USUS

1 Member Family = $9,3101 Member Family = $9,310

2 Member Family = $12,4902 Member Family = $12,490 Majority of calculations were done with Majority of calculations were done with

respect to the Platinum Piecerespect to the Platinum Piece

Study by CastronovaStudy by Castronova

Average playerAverage player

20 Year-old Male20 Year-old Male

Working Full TimeWorking Full Time

Well Educated (High school Well Educated (High school diploma)diploma)

$20/hour $20/hour

35% are students 35% are students Voluntary, possibly detrimentalVoluntary, possibly detrimental

OverviewOverview

The Platinum Piece exists only on The Platinum Piece exists only on computers in San Diegocomputers in San Diego

Not backedNot backed Retain value over time (for now)Retain value over time (for now) Fair number of people (400,000+)Fair number of people (400,000+) Controlled CirculationControlled Circulation

Big PictureBig Picture

Currency needs no backingCurrency needs no backing Anything can be currency or have valueAnything can be currency or have value Even in virtual worlds, currency helps Even in virtual worlds, currency helps

form economiesform economies This virtual currency has a decent This virtual currency has a decent

exchange rateexchange rate MMORPGs are rapidly gaining MMORPGs are rapidly gaining

popularitypopularity- Future effects?- Future effects?

Questions?Questions?