The Currency Epidemic: Modeling Market Crashes as Disease Outbreaks

GA Firing Line

Callie

Hunter
Feb 24, 2025
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United States of America
Outbreak Mechanics in Economic Systems

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In the dynamic trading environment of Path of Exile 2, market crashes often emerge suddenly and spread rapidly across the economy. These crashes can be analyzed through the lens of epidemiology, where the flow of currency and items mimics the transmission of disease. A sudden drop in the value of a key item, such as a crafting currency or unique item, behaves like an infection introduced into a healthy population. The value disruption originates in a local cluster—often caused by patch changes, exploit revelations, or bot-driven inflation—and then spreads through trade channels as more players react. This ripple effect, triggered by panic selling or speculative behavior, mirrors how pathogens move from host to host in densely connected populations.


Vectors of Contagion: Trade Channels and Marketplaces


Infectious diseases rely on vectors to carry them between individuals. In POE 2, trade websites, chat channels, and community forums act as the primary vectors of economic contagion. When players detect a shift in value or pricing error, the news spreads quickly. Trade listings update in real time, and players, fearing losses, begin to offload their currency or items en masse. The fear-driven behavior accelerates the devaluation, much like how infected individuals may inadvertently expose large groups due to proximity or travel. The interconnected nature of POE 2’s economy ensures that even isolated imbalances can become systemic threats once they gain enough momentum.


Symptoms of a Market Illness


As with biological outbreaks, economic crashes exhibit recognizable symptoms. Sudden spikes in trade volume for a specific item, rapid drops in prices across multiple listings, and an increase in low-effort flip attempts are all indicators that a destabilizing event is in progress. This stage often leads to hoarding behavior, where players stop selling certain items in hopes that value will recover, thereby choking supply and deepening volatility. The economy enters a symptomatic phase where confidence is eroded, speculation dominates, and legitimate transactions slow down. Like a fever in a sick body, the fluctuation in value is a defense response, but one that often worsens the problem in the short term.


Immunity and Resistance Within the System


Not all market crashes lead to full economic collapse. Some are contained through the actions of experienced traders who provide liquidity, stabilize prices, and continue offering fair trades. These players function like immune cells, recognizing the abnormal behavior and restoring equilibrium through rational decision-making. Additionally, certain items or currencies are more resistant to volatility due to their utility or fixed drop rates. For example, Chaos Orbs and Divine Orbs tend to retain value better because they serve as foundational trade mediums. Their stability acts as a form of herd immunity, slowing the spread of panic across the rest of the economy.


Mutation and Recurrence of Crashes


Just as diseases can mutate and return in new forms, economic crashes in POE 2 often evolve between leagues. A crash in one league might stem from duplicated currency flooding the market, while in another it could be caused by nerfs to key builds that render certain items obsolete. These mutations make forecasting difficult but also encourage economic resilience. Players adapt by diversifying their assets, trading more cautiously, or sticking to stable market segments. The economic memory of past crashes informs future behavior, allowing the system to evolve defense mechanisms against recurring destabilizations. This adaptive capacity mirrors biological systems that survive epidemics by changing behaviors and building resistance over time.