Implementing "Ripple" for Trades?

[Sultan]

I'm not sure if any of you are familiar with this: https://classic.ripplepay.com/

It is basically a protocol that categorises debt to be used as a monetary system.

At the moment it seems that in this game, trade is managed by assigning 'points' as a measure of value. However, just like any bartering, it means that the traded valued must equal exact value, which may be difficult for goods that have different values to different peoples.

As villages trade with each other more often, would it be possible that they allow each other to be in debt to each other by a certain amount of ''points' and as the network of trade expands, this could create the ripple effect described in the site.

I am wondering if this would, essentially, become the next evolution trade in this game?

[KennyoftheSands]

It's a great idea, but only between stable parties. I've supported a bunch of villages giving them a debt, and most of them either got raided, quit all contact, or just blunt refuse to pay. When trading with regulars a couple of points aren't that big of a deal, but it'd be fun to see how developing villages with trusted leaders could place orders and pay them off once they get rolling.
Because that's how it worked out for Africa, right?

[overtyped]

I'm not sure if any of you are familiar with this: https://classic.ripplepay.com/

It is basically a protocol that categorises debt to be used as a monetary system.

At the moment it seems that in this game, trade is managed by assigning 'points' as a measure of value. However, just like any bartering, it means that the traded valued must equal exact value, which may be difficult for goods that have different values to different peoples.

As villages trade with each other more often, would it be possible that they allow each other to be in debt to each other by a certain amount of ''points' and as the network of trade expands, this could create the ripple effect described in the site.

I am wondering if this would, essentially, become the next evolution trade in this game?

Hahah that would be hilarious. Imagine a villages economy collapsing from mounting debt, HAAAAAHAHAHAHAHA Just like the US economy.
This idea should be in C&I though

[DDDsDD999]

We should also have coins.

[Jesus_Smith_Nandez]

People buying so much stuff on credit is one of the reasons the Great Depression happened; people had so many debts on shit that when they lost their source of income, the debts were unplayable and the people who sold them stuff on credit could repossess their things and people lost everything they had.

In this case repossession isn't really an option, but things still get in the way of people buying things with "debts," like being unable to pay traders back later as planned or the value of whatever they were planning on using to repay the debt dropped (i.e planning to pay with the best q water, but better water hit the market before you paid making your water worth less), and it fucks the trader since they have no way to get it back unless the items are scented, which is shunned. That's all assuming people are honest.

[LadyV]

And how would you implement such a system when people will choose to not trade with you if you can not pay. You would have to have some good friendships to trade on credit. Im quite sure such things happen now.

Personally I think you are forcing economy in a world where its up to people to decide.

[TeckXKnight]

Despite the nay saying people have, lending is fine if you have the capital to afford the losses from bad trades. Theoretically all forms of credit create funny money and excess liquidity but our in-game economy isn't large enough for this to have any seriously detrimental effects. It all breaks down to trust and this is why we have credit limits in real life too. Start small with people you don't know very well and if you can trust them, then you can be willing to lend them more. If they screw you and don't pay back their debts, then they just don't get any more credit, or trades, until they do.

To some degree its always been like this. I know I've over/under paid and been over/under paid on some deals for various reasons and it was fine because I knew I'd be trading with them in the future and anything short this time could be paid then.

[loftar]

You would have to have some good friendships to trade on credit. Im quite sure such things happen now.

I'm fairly sure OP agrees with you, and that he suggests something Ripple-like to provide a better means to manage such credit. The greater question is probably rather whether there is enough trade to merit such a system.

[Jesus_Smith_Nandez]

Another thing tat happens in this game that I touched on before is that this game also has the ability to drop something in value very fast unlike what would happen in the real world.

I'll give an in-game example: person A buys person B's soil for top price on credit. Person C finds better soil and sells it for the same amount, and drops the price of person B's soil. Person A now has a loan from person B that is more than the value of the items he has.

With the current system of pay with items when you need, it would be a bummer because person A overplayed for his soil, but on this loan system, he would have a loan he can't repay or would have to pay extra out of his own pocket for.

Now since person B's soil has dropped and person A has a huge debt, they can't afford to repay their other debts, and the people they owe the debts to don't get their money and can't pay their debts, etc etc into a big downwards spiral. In addition, if people choose to charge interest, that stacks up too.

It could all have been avoided had everyone payed upfront and this example can be applied to pretty much every item with quality in the game, especially natural recourses.

You see what I mean?

[bitza]

You see what I mean?

and here you have it folks, an explanation of the 2008 economic market crash put into h&h terminology. well done jesus