Interesting monetization scheme

Started by
14 comments, last by Kylotan 7 years, 5 months ago

So, it seems like the practicality of this approach has nothing to do with games or virtual goods and is just about whether you have good enough contacts in newly-developed economies to be able to invest there confidently (even though the 'state banks are safe' argument holds zero water when there have been times in recent history when inflation rates exceeded interest rates, meaning you lose money just by having it in the bank). As such, I'm not convinced this thread has any more mileage on this forum.

Advertisement

Those are risk investments

not more risky than us or eu if you KNOW what you are doing and have a trustable partner in there
The word "risk investment" does not mean it's somewhat more or less risky in a sense "What if the country declares bankruptcy", or "What if revenue is only half as good as promised". It means "You have a fair chance of losing your money -- even if no meteor the size of Texas hits Earth". That's why risk investment has such a high interest rate, this is to compensate for its risk. Anyone who is not a complete fool will only do risk investments with money that you can afford to lose because losing it is not altogether unlikely to happen. You don't put 10,000 on the roulette table if you can't afford losing them either, do you.

Risk investment rules out "trustworthy partner". They are risk investments precisely because the partners are not trustworthy. If they were, they'd only pay 1/10 as much interest.

Besides, saying "if you know what you are doing" is, mildly said, an indication of a dangerous level of Dunning-Kruger. There are few people who know. Very few, and you won't find them on a game developer forum. But even so, knowing what you are doing is not going to save you because whether or not a risk investment bails is not foreseeable or within your control. The single most important thing in investing money isn't knowing what you are doing, but knowing what not to do.

That is to say, not doing anything that can cause a loss which will break your neck. Taking liabilities and putting the assets necessary to pay these liabilities into risk investments is likely to break your neck, unless you are so immensely rich that you simply don't care about losing a few hundred thousand, or a million. Breaking your neck is likely even more so if it involves moving money around internationally in non-predictable, and non-usual ways with all the many legal implications, and you haven't hired a team of specialist solicitors. Who, of course, won't work for free.

This topic is closed to new replies.

Advertisement