Re: Nanofabricators, DRM and Forced Scarcity
 

It's not a wash. Seriously, just use an amortization calculator, this is the sort of problem they're designed for. And 11% is high, it's equivalent to a P/E ratio of 9, 7% is a better estimate (P/E ratio of 14).

Re: Nanofabricators, DRM and Forced Scarcity
 

11% may not cover it, depending on how risky people consider it to be, you can get over 14% buying Ukrainian bonds right now, but no one is rushing out to do that either.

Re: Nanofabricators, DRM and Forced Scarcity
 

I think Kyiv just pulled Richmond, Virginia into its Schwarzschild radius!

Re: Nanofabricators, DRM and Forced Scarcity
 

The risk is incorporated into the expected lifespan of the bioroid -- if a bioroid lasts for 25 years and I'm only amortizing over 15 years, it means I think that the mean useful lifespan (before failure, obsolescence, or irrelevance) is only 15 years. If the bioroid is saving you $2,400/month (i.e. its maintenance is $1,200) the $150k bioroid is a reasonable investment (7% APR) if you expect it to last 6.5 years, at the end of which period it has a value of zero.

Re: Nanofabricators, DRM and Forced Scarcity
 

Really human wages and investment in/upkeep of bioroids will compete in the labor market and reach some kind of equilibrium (probably where it makes sense for some employers to commission bioroids and others to hire humans).

You may end up in a situation where the choice is dictated by the current availability of credit.

Re: Nanofabricators, DRM and Forced Scarcity
 

Well said, that's what I should've said instead of going on and on about interest rates.

Re: Nanofabricators, DRM and Forced Scarcity
 

The problem is that the equilibrium might be at zero of one or the other. Getting a human to trained adult status may well cost more than $150,000 (21 years x $600/mo = $151,200), and someone is paying that cost.

Re: Nanofabricators, DRM and Forced Scarcity
 

If the only alternative on the market is uncompetitive wouldn't the price of bioroids go up?

Re: Nanofabricators, DRM and Forced Scarcity
 

Not if bioroid prices emerge from competition between bioroid suppliers rather than the maximum anyone would be willing to pay for one.

Re: Nanofabricators, DRM and Forced Scarcity
 

Minimum price will still be the materials, power and Nanofac time to produce and usage, which costs can be significant even before any profit margin comes into play.