tag:blogger.com,1999:blog-3993498847203183398.post5627292889505421316..comments2024-03-28T09:19:27.451+00:00Comments on RevK<sup>®</sup>'s ramblings: WoW Gold and Blizzard bank?RevKhttp://www.blogger.com/profile/12369263214193333422noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3993498847203183398.post-55536627544902134322016-09-28T15:36:50.894+01:002016-09-28T15:36:50.894+01:00Bitcoin in practice ends up with banks, because pe...Bitcoin in practice ends up with banks, because people like storing their 'wallets' in the cloud. No regulation means high risk - see MtGox.<br /><br />So in that sense regulation is a good thing.. if you want to store bitcoin for others you need to treat it like any other financial transaction.<br /><br />I'd say the same for WoW Gold too really, except Blizzard are the central bank and already somewhat secure (as it's in their interests to be so).Tony Hoylehttps://www.blogger.com/profile/06485210895681350152noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-87774759850121270542016-09-27T21:48:51.808+01:002016-09-27T21:48:51.808+01:00"In the game, vendors sell things for WoW Gol..."In the game, vendors sell things for WoW Gold and that WoW Gold does not go to the vendor account or a "Blizzard account", it just goes."<br /><br />That's because Blizzard is the central bank issuing the currency. Money in the hands of the currency issuer is worthless bits: it can be created on demand or destroyed freely. This much is widely known.<br /><br />Less well understood is that anyone with money lent to them by someone else can also create money on demand, and later destroy it. You do this by loaning the money to someone else (call her C). This has the effect of creating a sum equivalent to the amount you loaned, since the money is still in existence in C's hands, but the original person who lent you the money still has it and can ask for it back.<br /><br />Of course, if you can't *give* it back when they ask, well, that's a bank run for you, and is why banks have a capital cushion. But nonetheless this is creation of money and strictly increases the amount of money in the financial system: similarly, repaying loans reduces the amount of money in the system, which is why after debt bubbles recession often strikes (everyone is repaying loans: even if they are also spending, the amount of money and thus the velocity of money in the system goes down.)<br /><br />This is also why politicians are so pro-policies that get everyone massively indebted; as long as they don't have to pay it back anytime soon, this has the effect of boosting the economy, in effect borrowing economic activity from the future (after the next election!)Nick Alcockhttps://www.blogger.com/profile/06590610308528769844noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-55950347463311867572016-09-27T14:45:26.070+01:002016-09-27T14:45:26.070+01:00I expect that nobody would be interested in a coup...I expect that nobody would be interested in a couple hundred £, but I bet if you were to purchase £50,000 of tokens your account would be flagged in some way for investigation...John Burtonhttps://www.blogger.com/profile/07156658352563482506noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-7532857742341961062016-09-27T13:00:28.882+01:002016-09-27T13:00:28.882+01:00When have you known legislators (especially UK one...When have you known legislators (especially UK ones) make sensible decisions about something really subtle like this? If nothing else, it would require being well informed about the subject matter, something that legislators seem to avoid at all costs - it's much easier to draft legislation when you haven't got a clue (Internet Connection Records, anyone?)st42https://www.blogger.com/profile/01085718626453111584noreply@blogger.com