Quote from: generalizethis on August 04, 2017, 12:06:15 AM

An M exchange asset is going to create deflation

When XMR mooned 12 months ago it created deflation in CK assets, but that was an exogenous shock from outside CK that rapidly increased the value of CK's currency, which at that time was XMR.

If M mooned in ths future it would be due to people investing in CK, not people using CK's currency on a dark market like 12 months ago.

Increased value of M would flow through CK economy without necessarily causing deflation, there are automatic stabilizers now, building payoffs in M being a prime example. Mooning M would put downward pressure on real estate prices, BUT, increased value of M building payouts would put upward pressure on real estate prices. During the sept 2016 revaluation event no such countervailing effects existed, and the game owed XMR denominated debt at the time also, which isn't the case now.

The relationship between XMR and other crypto coins valuations and CK item valuations is not the same as before, all demand for M is based on confidence and speculation in CK, so it's endogenous demand. Mooning M would have effects, but not universal deflation like before, and strategies for coping with sudden revaluations of M would offer skilful players opportunities for profit.

If you want to work through the economics think of CK like a country like Greece. Last year the game got stuck using a strong currency, like Greece is stuck using the Euro, and that caused deflation and similar debt repayment nightmares to what Greece has suffered. Unlike Greece which is politically stuck in the EU and unable to easily restore their own currency, CK was free to do an xmr-exit, and now our currency M can float against all other crypto currencies, so M has been devalued and is very cheap now, and 'attractive' to investors. The whole 'grexit' debate is about avoiding further deflation by decoupling a weak economy from a strong currency, CK already did this, so if M demand goes up it's unambiguously good!