ICT News

How did the most popular game of the season take users from buying and selling radishes to investing in stocks?

“Animal Crossing: New Horizons” has become a cult game during the time when people are indoors due to the epidemic, thanks to providing an interesting “escape” for users. This game is a virtual paradise where players can start a new life, building idyllic islands alongside other villagers in the form of animals.

For Angie Fung (24), working in the field of commercial real estate management, Nintendo’s hottest game in recent times has led to a surprise. It made her a stock investor. The girl’s journey from Seattle began when she was trying to make a quick buck to grow her island – which can be done by breaking rocks or shaking trees, fishing. However, the most profitable way is buying / selling turnips on the “stalk market”.

Raymond was “addicted” to this business and joined hundreds of thousands of players. They spent countless hours researching to find the best price for the vegetables they had.

“Marketplaces” appear on sites like Turnip.Exchange and Reddit – where there are forums with 319,000 “turnip farmers”, to discuss prices and to offer goods. A project called Turnip Prophet was launched that attempted to guess the turnip price using information gathered from the game’s software code.

Raymond’s boyfriend noticed that the girl spent a lot of time and effort on these virtual items. Therefore, she should also try with “real goods”. Raymond shared: “That was the‘ aha ‘moment.’ Real investment ‘and on game the concept is the same. ”

That was when Raymond joined the wave of “wet-footed” investors on the stock market, buying / selling shares at a fee of 0 VND through an online brokerage application. In the spring, she invested about $ 1,000 in technology stocks, including Palo Alto, Nvidia and Square. In addition, she also poured money for small-cap stocks related to disease.

How did the most popular game of the season take users from buying and selling radishes to investing in stocks | ICT News

Animal Crossing is the latest in many successful games when tested with “virtual economy”. In addition, Warcraft and Second Life also have their own economies that mimic real world economic phenomena, such as resource scarcity and tax payments. Even a professor has succeeded in applying basic economic principles to study the world of these games.

There are some psychological similarities between getting rich with turnips and building a real-life portfolio, says John Peolking, senior game analyst at Mintel. “The stakes are very different because it’s in game currency and real world currency, but it’s still an investment. You feel sad about losing money in the game, even if it’s not money,” he said. But that feeling is real to you. ”

Investopedia and consulting firm Betterment used Animal Crossing to explain fundamental and advanced concepts of the market, such as supply and demand, price spread, as well as how to perform fundamental and thorough analysis. for real stocks. Betterment said the game shows that short-term investments are risky, portfolio oversight is quite stressful, and diversification is important.

The virtual investment market does not accurately reflect real-life securities trading. In the game, every Sunday, the player can purchase radishes from the fictional character Daisy Mae. The price of radish on the island differs from person to person and only changes 2 times / day. Player joy comes thanks to sideline deals, where sellers invite other players to their island and attempt to make buy / sell deals.

Jessica Amado, a senior at Rutgers University, shares that the turnip market has taught her the importance of taking profits before prices drop. This 22-year-old girl often makes a loss when not selling radishes when the price increases. When she discovered she was in the business of wealth, she was given $ 120 by her father to invest in real stocks. Jessica bought 20 shares of Plug Power earlier this summer for $ 5.60.

The girl shared the reason for choosing this company because it was listed in the list of the 100 most popular codes of Robinhood and was mentioned in an article that her father submitted with the content of the best stocks with lower prices. 10 USD. Her investment has now made a return of about $ 100 and the share price continues to rise.

Jessica said: “I want to hold on longer but have no regrets selling because profit is still a profit. It was the right decision at a time when it is difficult to make money like now.”

Kurt Boyer (50 years old) – software engineer at Yocom and Mckee, developed an algorithm to predict radish price for the previous version of this game. A few years ago, he tried to do the same with real stocks, but things were not so easy.

How did the most popular game of the season take users from buying and selling radishes to investing in stocks | ICT News

Animal Crossing players are buying radishes from Daisy Mae.

“In Animal Crossing you see patterns and they tell 100% of the time what will happen in the next price change. In the real market, there are hundreds or thousands of patterns,” he said. that traders study. And each pattern shows each future price movement. However, that factor is also not warranted. ”

Raymond said she turned to stock investment because she found making money from radish too easy. Moreover, although she knew she had to be more careful with real stocks, her successes from investing in radish made her a more daring investor.

“Now, I have a mindset that I will pour $ 1,000 into this random stock. It’s not real money. I have no feelings for my money because I started investing from a game,” said Raymond. . ”

Her former Animal Crossing group used to keep track of radish prices on different islands, but now it is used to exchange information about the hottest stocks of the day, with the chat group title being “Buy Buy buy”.

Back to top button