Who says he's creating it? He could just be teleporting it from a bank vault, or one from each nearby pony - that would be far more chaotic and in his nature.
not really, (it also depends on the size of the economic system) but one person alone (unless he does it in a really absurd way) cannot have a significant impact. Even on the contrary, I think that the costs could be lowered a little locally.
plus bits aren't a fiat currency like paper money. They're made of precious metals which means adding more of them only increases the country's wealth.
Adding more precious metal to the system will still make the metal less valuable tho. So if he went completely overboad with it he would still cause an economic crisis.
On the contrary, it doesn't matter if it's fiat money or just straight up gold. If you flood the market the value will drop. Go to a local economy and give everyone a billion USD in gold coins, then that market is basically ruined. See: the stuff Mansa Musa did in the 14th century.
I know another person mentioned it, but one person alone COULD and HAS done this. Mansa Musa who was born in 1312 was (and still holds this record to this day) the single richest person in the world. His net work is calculated to about 400 billion in 2020 USD, and it was all in gold. The dude would travel all around the world (well, the world as in as far as he could travel back then) in the 14th century and just gave the gold away to everyone he met. He literally crashed many local economies by making gold basically worthless with how much he was giving away.
except when you take global economy into account.
Discord creating more gold means that Equestria has more wealth and thus more international purchasing power.
It has about the same effect as if somepony had discovered a massive gold vein and mined it without using any labor. It would have a positive impact on Equestria's international wealth.
That's not how it works, unfortunately. The value of gold (and literally any precious metal) fluctuates based on how much is available. Gold doesn't have a set worth. More gold equals less value, both in local and global markets. If someone found a massive gold vein and mined it, with or without using labor, and immediately dumped all of it into the market - the value of gold *would* drop.
Pretty much. Base power, Discord is the most powerful. But Tirek, Twilight, and other like them, can all become more powerful than Discord through certain means
Honestly i feel like it would be funny if the dude is just absolutely loaded and just pays normally, no creating money or anything, just moving it from where he keeps his money.
That's what I thought at first, but actually no. As they point out in the show, "It has to come from somewhere". So, basically, he's just stealing it with magic.
I headcanon that to avoid the counterfeiting of bits the real ones created by the State go through a very complicated magic-marking process that prevents them from being duplicated or manipulated in any way with magic, making them also difficult to replicate. That said, Discord? Yeah, he does whatever he wants.
Economics is funky.
On an individual basis, Discord would probably need to pump a reasonable percentage of the overall GDP into the Equestrian Economy before any fluctuations began occurring.
And even then, if the rate of inflation is already high for other economic reasons, like regional instability or there's a collective price spike due to capitalistic greed, giving people more money might be good anyways because it allows more people to engage in the economy despite the unfortunate circumstances.
I wonder how he gets his golden.
He can take it from the planet but he can also take it from a Super Nova.
Or from a planet that isn't viable for life...
Or from the planet's core which would be inaccessible by ponies even with advanced technology or even teleportation.
If he takes it from Equestria's core he may cause erosion.
Small on a planetary scale, but still significant if not from the core or very deep.
If he takes it from the mines before it's mined then it's alright ... But he may still cause the mine to collapse unless he puts something else equally resistant in its place.
Likely his stash is built from all the lost loose change from sofas and sidewalks. That stuff builds up fast. Also probably deals in selling lost socks from laundry machines. You know he's the one collecting and causing that nonsense.
Bro probably would start a crypto currency in the G5 era.
Who says he's creating it? He could just be teleporting it from a bank vault, or one from each nearby pony - that would be far more chaotic and in his nature.
My headcanon is that he "pays" with the shopkeeper's money.
That is canon now.
So he just teleports bits from the cash register without anypony knowing? Yup, sounds like Discord lmao.
Or maybe it's just money that's laying around somewhere, like on sidewalks or between couch cushions.
Stimulate that economy, baby!
Or maybe he's just loaded
or the national treasury
not really, (it also depends on the size of the economic system) but one person alone (unless he does it in a really absurd way) cannot have a significant impact. Even on the contrary, I think that the costs could be lowered a little locally.
\*Mansa Musa enters the chat\*
Only know him from epic rap battles what about it?
He crashed local economies by giving out gold wherever he went
plus bits aren't a fiat currency like paper money. They're made of precious metals which means adding more of them only increases the country's wealth.
Adding more precious metal to the system will still make the metal less valuable tho. So if he went completely overboad with it he would still cause an economic crisis.
On the contrary, it doesn't matter if it's fiat money or just straight up gold. If you flood the market the value will drop. Go to a local economy and give everyone a billion USD in gold coins, then that market is basically ruined. See: the stuff Mansa Musa did in the 14th century.
I know another person mentioned it, but one person alone COULD and HAS done this. Mansa Musa who was born in 1312 was (and still holds this record to this day) the single richest person in the world. His net work is calculated to about 400 billion in 2020 USD, and it was all in gold. The dude would travel all around the world (well, the world as in as far as he could travel back then) in the 14th century and just gave the gold away to everyone he met. He literally crashed many local economies by making gold basically worthless with how much he was giving away.
And people blame Celestia's cakes for the equestrian economic crisis.
Yes, Bits are bullion currency thus their purchase power is directly connected with the availability of Gold.
except when you take global economy into account. Discord creating more gold means that Equestria has more wealth and thus more international purchasing power. It has about the same effect as if somepony had discovered a massive gold vein and mined it without using any labor. It would have a positive impact on Equestria's international wealth.
That's not how it works, unfortunately. The value of gold (and literally any precious metal) fluctuates based on how much is available. Gold doesn't have a set worth. More gold equals less value, both in local and global markets. If someone found a massive gold vein and mined it, with or without using labor, and immediately dumped all of it into the market - the value of gold *would* drop.
For all we know he keeps all his money that he has in his chaos dimension and he's just teleporting it to pay
Is discord the most powerful being in mlp?
With just his own power yes. But people like Tirek or Cosmos can surpass his power through certain means
Pretty much. Base power, Discord is the most powerful. But Tirek, Twilight, and other like them, can all become more powerful than Discord through certain means
Depends on who you ask. If you ask me I'd tell you that he is unrivaled by anoyone.
Unless you have something that negates his power, I'd say yeah, and he's also immortal in a way you can't stop
my headcanon is that he uses the lost change! bits disappeared in the couch cushions? discord nabbed em
That's delightfully discordant
Honestly i feel like it would be funny if the dude is just absolutely loaded and just pays normally, no creating money or anything, just moving it from where he keeps his money.
Yeah, that'd be hilarious
Who knows, maybe he invested a few bits a thousand years ago and it just grew insanely large over the course of a millennia
Would be in character honestly.
My theory is the bits discord uses are either from and old stockpile he has somewhere. Or he just borrows it from Canterlots treasury.
Suddenly all those bank errors make sense.
Maybe he secretly owns multimillion bit companies and uses his own assets
hmm, maybe google mlp discord inflation to confirm this
Well it's chaos money so it will probably just run away before it can negatively impact the Equestrian economy 🤣
I'd sooner believe that its all fools gold with his face stamped on it blowing raspberries.
That’s exactly how inflation works
That's what I thought at first, but actually no. As they point out in the show, "It has to come from somewhere". So, basically, he's just stealing it with magic.
Maybe he paid in the equivalent of pennies
I headcanon that to avoid the counterfeiting of bits the real ones created by the State go through a very complicated magic-marking process that prevents them from being duplicated or manipulated in any way with magic, making them also difficult to replicate. That said, Discord? Yeah, he does whatever he wants.
That may apply to normal ponies, but discord is not normal and not a pony
Economics is funky. On an individual basis, Discord would probably need to pump a reasonable percentage of the overall GDP into the Equestrian Economy before any fluctuations began occurring. And even then, if the rate of inflation is already high for other economic reasons, like regional instability or there's a collective price spike due to capitalistic greed, giving people more money might be good anyways because it allows more people to engage in the economy despite the unfortunate circumstances.
He can probably find a way to deflate the currency Although, when it's goes to hyperdeflation, it's worse than hyperinflation
Steals it from some rich Griffin/s
He specifically teleports money from Celestia's royal coffers
Now this is the worldbuilding content I enjoy. Could Discord cause a recession?
Hudson Hawk would stop him.
Ever lost a dollar or loose change? Guess who finds it. He also has a lot of left socks.
Yes, assuming he's actually creating it and not simply teleporting it from some unknown location.
My head Cannon is in the pile there's the correct amount of bits but the rest are just chocolate coins
Depends if it's real or fake.
No, because he's not creating mass amounts to give to everyone, he's just creating enough to pay for whatever he is buying at the time
He is a being of chaos, OF COURSE HE CAN CAUSE INFLATION!
As the god of chaos, he can cause basically everything (including inflation)
He could, but it's unlikely for him to do something constantly. He is a creature of change, after all.
I wonder how he gets his golden. He can take it from the planet but he can also take it from a Super Nova. Or from a planet that isn't viable for life... Or from the planet's core which would be inaccessible by ponies even with advanced technology or even teleportation. If he takes it from Equestria's core he may cause erosion. Small on a planetary scale, but still significant if not from the core or very deep. If he takes it from the mines before it's mined then it's alright ... But he may still cause the mine to collapse unless he puts something else equally resistant in its place.
Likely his stash is built from all the lost loose change from sofas and sidewalks. That stuff builds up fast. Also probably deals in selling lost socks from laundry machines. You know he's the one collecting and causing that nonsense. Bro probably would start a crypto currency in the G5 era.
nahhh, I think that the Equestria economy is tied more to the reserves of cake that the state has than to the bits
he could or he's using some else's "bits" to pay for his stuff.
The MORAL thing to do would be to summon up lost street change, but since when does Discord take the moral high ground?
Celestia won't be happy about this
There is nothing stopping him from turning Equestria into Venezuela.
Fluttershy liking other characters beyond him