The Currency of Everquest Platinum Pieces

What is Everquest MMORPG – Massively Multiplayer Online Game MMORPG – Massively Multiplayer Online Game 400,000+ Players Globally 400,000+ 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 Currency 4 Denominations 4 Denominations Copper / Silver / Gold / Platinum Copper / Silver / Gold / Platinum Semi-Common Expensive Items Sometimes Have Universal Values Semi-Common Expensive Items Sometimes Have Universal Values - FBSS / SMR / RBB - FBSS / SMR / RBB 5k 7k 10k Platinum Pieces 5k 7k 10k Platinum Pieces Everything in-game is measured by Platinum Pieces Everything in-game is measured by Platinum Pieces Implemented by Everquest ’ s makers from the game ’ s start Implemented by Everquest ’ s makers from the game ’ s start

Obtaining Money and Items Obtaining Money: Obtaining Money: - Killing things that drop coins Primary way of putting new money into circulation - Killing things that drop coins Primary way of putting new money into circulation - Crafting Item, Doing Quests - Crafting Item, Doing Quests Slow, secondary way Slow, secondary way

Obtaining Money and Items Obtaining Items: Obtaining Items: Killing specific things, Doing Quests Killing specific things, Doing Quests Slower and harder to do than getting money Slower and harder to do than getting money

Storage of Value With each new expansion old items tend to drop dramatically in value With each new expansion old items tend to drop dramatically in value Items – Short Term Value, Depreciate Items – Short Term Value, Depreciate Platinum – Long Term Value - Preferred Platinum – Long Term Value - Preferred

Similarities to Real Money Stored in virtual banks Stored in virtual banks Retains value over time Retains value over time Easily traded Easily traded Fiat Money – No Backing Fiat Money – No Backing Durable Durable Widely accepted in the issuing nation Widely accepted in the issuing nation Easily Divisible Easily Divisible Amount in circulation is controlled Amount in circulation is controlled

Controlled Money Supply Money is introduced through killing things and crafting items Money is introduced through killing things and crafting items Money is removed through players buying from computer-controlled vendors Money is removed through players buying from computer-controlled vendors Often, players don ’ t buy enough Often, players don ’ t buy enough Money Going In > Money Going Out Inflation

Removing Excess Money : Money Sinks One-Time Expenditures One-Time Expenditures - Investing in skills, Teleporting players - Investing in skills, Teleporting players Consumable Items Consumable Items - Food, Item coloring, Spell components - Food, Item coloring, Spell components Effect : Destroys Large Chunks of Money

Large group of people (400,000+) Buying / Trading / Selling w/ Platinum! Happy and Healthy Virtual Currency!

Bad Sides  Counterfeiting - “ Duping ” Counterfeiting - “ Duping ” Creating a 1 to 1 copy of a block of currency Detection Detection Digital ID ’ s = Serial Number Difficult to track down Scamming – Stealing, Fraud, Identify Theft Scamming – Stealing, Fraud, Identify Theft

So What It is just a game right?

Real World Implications Auctioning of items and money Ebay.comPlayerauctions.com

Real World Implications Actual Online Stores Actual Online StoresMySuperSales.comIGE.com

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

Study by Castronova Exchange rate Exchange rate 1 Platinum =.0107 Dollars or 1 Penny or About 1 Japanese Yen Players make $3.42/hour Players make $3.42/hour Overall, about $15,000/hour is created Overall, about $15,000/hour is created GNP = $135 Million GNP = $135 Million Makes EQ 77 th richest nation Makes EQ 77 th richest nation

Study by Castronova Many people play over 80 hours/week Many people play over 80 hours/week At $3.42/hour = $12,000 a year At $3.42/hour = $12,000 a year $12,000 is above poverty line in the US $12,000 is above poverty line in the US 1 Member Family = $9,310 1 Member Family = $9,310 2 Member Family = $12,490 2 Member Family = $12,490 Majority of calculations were done with respect to the Platinum Piece Majority of calculations were done with respect to the Platinum Piece

Study by Castronova Average player Average player 20 Year-old Male Working Full Time Well Educated (High school diploma) $20/hour 35% are students Voluntary, possibly detrimental Voluntary, possibly detrimental

Overview The Platinum Piece exists only on computers in San Diego The Platinum Piece exists only on computers in San Diego Not backed Not 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 Circulation Controlled Circulation

Big Picture Currency needs no backing Currency needs no backing Anything can be currency or have value Anything can be currency or have value Even in virtual worlds, currency helps form economies Even in virtual worlds, currency helps form economies This virtual currency has a decent exchange rate This virtual currency has a decent exchange rate MMORPGs are rapidly gaining popularity MMORPGs are rapidly gaining popularity - Future effects?

Questions?