Sliding dollar - bad or good

luckylucky

This question is probably more geared to the serious recreational players to full-timers. I'm sure many of you are aware of the plumetting dollar, there seems to be no end to it.

In general i don't feel too happy about it. My max game at the minute is 3/6 or $200 sngs. The big problem is imo all though there will be some correlation between the exchange rate and what level people play I don't think it's a very strong correlation. i.e. Say if the dollar was at parity with the euro instead of it's current almost 1.44. I don't think you would find that ~30%(44/144) less of the current players at 3/6 would be playing at 2/4. I would guess the impact would not even be 10% tbh. In euroland this has a bigger impact , but for US players the exchange rate factor has not much of an impact at all of course.

Also this plumetting dollar won't lead to a corresponding amount of players playing at higher dollar stakes to compensate. Again I don't doubt there will be an affect of players moving up stakes but not anywhere near inline with the dropping exchange rate imo. Also I don't think the standard of the games at each level will reflect the plummetting exchange rate. So all this is bad for us guys that rely on poker in any shape or from as an income.

So basically my real value income from poker is dropping imo.

The one big benefit of the sliding dollar is we pay less rake in real terms. But i don't think it outweighs the drop in value in our earnings from poker in terms of euros.

Just wondering what others think, are there any other positives or negatives you can think of?

Goodluck2me

its like winning a tournament, you get to move up levels without a hit to your bankroll.
I wouldnt keep much money in dollars atm, its due another fall soon.

Lafortezza

So for my Vegas trip in January I should hold off on buying dollars right now?

Mellor

Hold off till it falls lower. I can see it reaching 1.5
It fall was pridicted here on boards in relation to poker. Did anyone take money into euro accounts for a week or two. I didn't bother as I thought it would make a small gain. I'm gutted as it ending up creating about a 13% profit, not ad if you have a few K (I don't)

phantom_lord

goodluck2me wrote: »

its like winning a tournament, you get to move up levels without a hit to your bankroll.

more like u have to move up levels to make the same amount (in terms of yoyos) as before the devaluation.

i'm just glad i changed to holding my br in yoyos.

Ollieboy

I bought 10k worth of dollars last week and it was 1.39, its now 1.44 thats a massive amount to lose in about 2 weeks. I try to leave my bankrolls online, which most sites keep in dollars, again I've loss a lot of money in the last 12 months.

The dollar slide is bad news, but I would rather if the European sites were in Euros. I also keep my income/outs in dollars and its causing me a pain in the arse in currency movements....lol

David Michael

My Neteller is in Euros so I won't be cashing out any accounts for awhile.

You are getting good value to open accounts on new skins/sites and clearing teh bonuses. That about the only upside I see.

pok3rplaya

I don't see how it's anything but bad for us.

ianmc38

its extremely bad. i still dont understand why european sites such as ipoker have the base currency as the US dollar. Doesnt make any sense.

ocallagh

Even if your acc is in € it's a problem.

If your acc is in euro but tables are in $, then moving up levels might make sense even if your account remains the same. ie: as the dollar weakens even further your € acc might push your bankroll above 30 $ buyins at the next level.

I would guess about 1% will move up or down due to currency fluctuations. The problem being you face stiffer competition at the same stakes.

If you were to combat this and stay at the same level your $/hr goes down.

Also, the fishies who play 1/2 and 2/4 will continue to play at "their level" but with less money each day.



edit: I didn't read the OP's post fully...:o i see i made the same points..

HiCloy

I don't see how this can be in any way good. I agree sites such as ipoker which don't allow US players should use the euro as base currency

pok3rplaya

Is thate any sort of timeframe for how long this situation might take to reverse ie. for the dollar to gain strength. Could it be 10 yrs? Does anyone know?

obv I know nothing about economics.

luckylucky

On the dollar/euro poker currency thing. I was thinking this whole dollar on the slide business is bad news for both poker sites and winning poker players. Maybe there should be a poker currency that might follow the average of the major currencies of the world, maybe simply just an average of the euro and dollar. Probably too complicated for the sites to come together and implement something like this though.

pok3rplaya wrote: »

Is thate any sort of timeframe for how long this situation might take to reverse ie. for the dollar to gain strength. Could it be 10 yrs? Does anyone know?

obv I know nothing about economics.

no guarantee whatsoever that it will reverse in the medium future. It might have declined even much further by 10 years or may have recovered fully long before then, too many unknowns involved. i haven't been following the situation too closely but i gatther there's no immediate chance of the trend starting to reverse.

pok3rplaya

OK I just did a quick calc, say I have an $8k BR. Right now if the dollar is 1.44 euro then I have €5555. If I keep my BR in dollars and the dollar slides to 1.50 then I have €5333. So I've just lost €221 EURO from doing nothing! I never thought that the effects of this stuff were so severe! wow!

pok3rplaya

I just checked with neteller and their currency exchane fee is 1.9%. So it looks like basically everyone is screwed no matter what you do. Lose money if you leave it on, lose a similar amount of money if you take it off (and possibly have to put it back).

phantom_lord

pok3rplaya wrote: »

I just checked with neteller and their currency exchane fee is 1.9%. So it looks like basically everyone is screwed no matter what you do. Lose money if you leave it on, lose a similar amount of money if you take it off (and possibly have to put it back).

at least if u change over to euro now you never have to worry about currency fluctuations again, and also u save paying the 1.9% charge every time u cash out in the future.

it would suck if the dollar suddenly rebounded obv, but that's not gonna happen, esp. since it's still considered to be over valued.

Macspower

pok3rplaya wrote: »

I just checked with neteller and their currency exchane fee is 1.9%. So it looks like basically everyone is screwed no matter what you do. Lose money if you leave it on, lose a similar amount of money if you take it off (and possibly have to put it back).

neteller is a killer if your transfering your bankroll around...

Unfortunately my neteller account is in euro and they can't / won't change it for me.... I revently moved sites and took my BR off one site and move it to another via neteller and I was $87 wore off when I had competed the transfer between the 1.9% charge and the difference in exchange rate between their buy and sell rates.....

negates a lot of the bonus whoring that might look like a good idea at the time....

Mac

luckylucky

I have my neteller account in dollars and I only use it for dollar transactions to avoid these currency charges. I spotted them when I originally set up my neteller account in Uk Pounds and I got hammered on my 1st dollar transaction. Fortunately at that time they allowed me to change the account to dollars but I believe they don't allow you to chnage your currency anymore now (not automatically anyway afaik)

phantom_lord

they wont let u change currency, u have to close your account and open a new one in the new currency, and go through all the hassle of verifying your bank account, id and stuff all over again.

Headspace

How much has the dollar dropped in the last few months? I moved more than half my bankroll to PP.com a month ago because of falling dollar suffered heavy losses and moved it back to PPP thinking I was being silly, then taking money out tonight I could not believe the drop, Shocking not good. There has to be a bottom to the fall I dont know that much about it but I think it will fall a good deal more so have put my roll back on PP.com

POKERKING

yes its been very bad i tried to put a figure on how much ive lost this year but i couldnt, a rough estimate wouldnt be far off 1k.

Im in australia at the moment and the story is similar wen i first got here i cashing out of stars every week the rate was $1.25aus for every $1us but now im getting $1.09aus for every $1us, it also hasnt helped that ive made more money in these intervening periods than i have ever made in my life and am relying on it for money here so essentially my income(which is small) has fallen over 15%.

The only good point from it is when i go on my hols to america from ireland next feb, we are getting excellent value, if your planning on buying any expensive things the holiday could pay for itself by buying it in america. For eg my mate has wanted a tag heuer watch for ages and instead of buying it in ireland for 2,600€ he got it in america for 1800$ so essentially it practically paid for his trip!!

shoutman

http://finance.yahoo.com/currency/convert?from=EUR&to=USD&amt=1&t=5y

dvdfan

Macspower wrote: »

neteller is a killer if your transfering your bankroll around...

Unfortunately my neteller account is in euro and they can't / won't change it for me.... I revently moved sites and took my BR off one site and move it to another via neteller and I was $87 wore off when I had competed the transfer between the 1.9% charge and the difference in exchange rate between their buy and sell rates.....

negates a lot of the bonus whoring that might look like a good idea at the time....

Mac

Same happened to me Mac, i transferred in the region of 2k maybe a bit more and lost over $90, but if i changed my netteller to $ then id get hit more often when i witdraw to my bank account which is obviously € so its hard to win.

sikes

Mellor wrote: »

Hold off till it falls lower. I can see it reaching 1.5
It fall was pridicted here on boards in relation to poker. Did anyone take money into euro accounts for a week or two. I didn't bother as I thought it would make a small gain. I'm gutted as it ending up creating about a 13% profit, not ad if you have a few K (I don't)

lol