<p>The price of your service would be determined by the exchange rate for your currency and what people are willing to pay in their own currency, minus a deduction for the inconvenience of having to buy your currency.</p>
<blockquote>
<p>For example, in a video game that has in-game currency, such as World of Warcraft or The Witcher, how are the prices of in-game items determined.</p>
</blockquote>
<p>The price is determined by how much the players are willing to pay for the item. Since games are entertainment it boils down to the entertainment value of the item, or the alternative cost (detriment) of not having the item.</p>

CC BY-SA 4.0
2021-12-27T13:46:03.787Z
2021-12-29T08:32:46.323Z
2021-12-29T08:32:46.323Z
Emil Vikström
<p>If I create a new currency (perhaps a cryptocurrency) and I wanted it to be the only currency usable to purchase an item/service, how would I determine the price of that service? I would think that it would have to do with <span class="math-container">$x/y$</span>, where <em>x</em> is the price of the service and <em>y</em> is the total amount of circulating currency. The result, however, would then also have to be dependent on the demand for the currency and on how the currency is acquired, I think. So, I am not sure how to approach this question. I am clearly no economist, so any help would be greatly appreciated.
To clarify, my question is how the value of a unit of currency is determined.  For example, in a video game that has in-game currency, such as World of Warcraft or The Witcher, how are the prices of in-game items determined.</p>

CC BY-SA 4.0
2021-12-27T05:53:05.240Z
Please clarify your specific problem or provide additional details to highlight exactly what you need. As it's currently written, it's hard to tell exactly what you're asking.
Community
CC BY-SA 4.0
2021-12-29T12:09:20.597Z
Would this answer your question: https://arxiv.org/abs/2103.05556 ?
Mick
CC BY-SA 4.0
2021-12-30T05:30:11.687Z
@Mick yes that was what I was looking for. Thank you very much.
Kile Maze
<supply-and-demand><money-supply><value><capital>
How is value determined?
Kile Maze
# How is value determined?

(Asked by: username_0 on 2021-12-27)

If I create a new currency (perhaps a cryptocurrency) and I wanted it to be the only currency usable to purchase an item/service, how would I determine the price of that service? I would think that it would have to do with $x/y$, where *x* is the price of the service and *y* is the total amount of circulating currency. The result, however, would then also have to be dependent on the demand for the currency and on how the currency is acquired, I think. So, I am not sure how to approach this question. I am clearly no economist, so any help would be greatly appreciated.
To clarify, my question is how the value of a unit of currency is determined. For example, in a video game that has in-game currency, such as World of Warcraft or The Witcher, how are the prices of in-game items determined.

**Tags:** supply-and-demand, money-supply, value, capital

> **Comments:**
> **username_1**: Please clarify your specific problem or provide additional details to highlight exactly what you need. As it's currently written, it's hard to tell exactly what you're asking.  
> **username_2**: Would this answer your question: https://arxiv.org/abs/2103.05556 ?  
> **username_0**: @username_2 yes that was what I was looking for. Thank you very much.  

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## 1 answers

### Answer by username_3 on 2021-12-27. Score: 1

The price of your service would be determined by the exchange rate for your currency and what people are willing to pay in their own currency, minus a deduction for the inconvenience of having to buy your currency.

> For example, in a video game that has in-game currency, such as World of Warcraft or The Witcher, how are the prices of in-game items determined.

The price is determined by how much the players are willing to pay for the item. Since games are entertainment it boils down to the entertainment value of the item, or the alternative cost (detriment) of not having the item.


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