The (Terrible) Economics of Hypixel Skyblock

The Economy of Skyblock is a mess. The last few months have seen a lot of inflation, and many players are quick to point the blame at The Garden update. But is that the end of the story, or is the economy more involved than you may think? In this video, I explain everything about how Skyblock's economy is managed, how its going, and what is being done to help improve it. I'm a nerd.

CORRECTIONS:
At 7m 23s the first 5 months worth of data are inaccurate. My data source did not track any auctions before October 2019 and the numbers for before then are of players who claimed old auctions after October 2019.
The jump in December 2020 may also be due to a change to the API that allowed BIN auctions to be accessed easily and not necessarily due to the updates mentioned, so my analysis here is likely inaccurate. All data and everything after and including January 2021 should be completely accurate though, and the bazaar should be fully accurate.

DATA SOURCES:

CHAPTERS:
0:00 - The Stock of Stonks Mystery
1:21 - Coins as Currency
4:25 - Supply & Demand
6:32 - The Bazaar & Auction House
8:57 - Inflation (caused by the Garden)
14:40 - Coin Sinks & Coin Generators
20:53 - So, Whats up with the Stock of Stonks?

Use code : "Hellcastle" in the hypixel store when checking out to support the channel :)

Follow us on twitter so we can see some meaningless numbers increase :
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[Dalynx]

Imagine being a normal Player just tryna play some normal Skyblock on your favorite Server and you end up Having to Understand how Economics and Math work lmfao

[benge]

I did 50% my assessessment pieces for my introductory microeconomics university course by discussing hypixel skyblock and relating it to the real economy, so im glad to see someone else nerding around with this

[Toadstar]

Why do I bother paying for college economics classes when I learned more from this video than my entire college class.

[steptimusheap]

Item sinks also help control inflation.

The garden visitors cause the demand for certain crops to go up, which means the bazaar price goes up, oftentimes above the npc price. more people sell to the bazaar than to the npcs, and less coins get generated

[ruileite]

As an ironman player, I really wouldn't mind some deflation (please, I don't want to keep on paying 7m per booster cookie)

[kepler]

Reason deflation is bad: “I’ll sit on my billions until the price of a hype drops even lower! I’ll grind items myself for now” In perpetuity. Always better to save than spend.

Hyperinflation -> “Ill never be able to save enough to buy a hype, ill have to drop it myself”


An economy that ends up behaving like an Ironman player isn’t exactly functional

[gdmalin]

You know it's a great decade when hellcastle uploads

[zipa]

During the inflation example with the hyperions, a real example that actualy happened was with juju shortbows! At first everyone could get them and everyone wanted them so the supply and demand was at an equilibrium, but when the admins changed the requirement to eman 5 everyone sold their juju shortbows so the price went from 17-20m coins to about 8million. Nowadays people are getting juju shortbows with ease but the demand is the same so the price went up to about 33m (might be a bit confusing the way I said it but) Amazing video guys!

[messup]

great video, insane how you can make such a unique and insightful video about one of the most talked about subjects in skyblock

[bowlofboyo]

its insane that there are hundreds of millions of dollars circulating in a game, in a server, in a block game.

[shadowhunterevil]

Your vids are dangerous. I quit skyblock 2 years ago and every time i get one recommended i watch it. And every time i feel like playing again. that shit is easier to fall back on than hard drugs.

[IYgoob]

What a great video teaching macro economics, I took macro courses last semester and I'm glad I could understand these concepts perfectly well in this video.

[enjoyerer]

great video, really informative, well edited, and also a good reminder that the admins have a lot more to do than you think

[MrShockBolt]

I love how half of all skyblock players probably don’t know half of the stuff that Tylerrrr has been talking about

[Cycls]

Never would I have thought I would be learning economics from a block game

[avraels]

i kinda want a full roll back of skyblock but at the same time all grinding would have sadly gone to waste

[Ssamaki]

Thank you for testing me on what I learned for my GCSEs.

[Andonerf]

The thing about farming is it isn't even the best way to make money per hour. Mining still makes considerably more money than farming, but the fact the barrier to entry for farming is so low along with the fact its much easier to AFK (and macro tee hee) means everything has inflated, yet if you really wanted to maximize the money you made per hour, you're still better off mining, which means now everything costs more and I'm still making the same amount of money

[polaristi]

this video unironically has some pretty good educational value as an introduction to economics. Love it.

[Catsarecuteok]

I play Ironman, have been for almost 3 years. Inflation has been insane if skyblocks lifetime. Some items, especially dark auction items, have massively inflated. Flower minions are 30m instead of 8m, ender artifact tripled to 300m in less that a year, and midas staffs are 250m or something. Good explanation though!