Bots, Hackers and Bugs also exist on Retail and sometimes they fail to recognize those same flaws.. I assume that you don't play Retail in such an active matter otherwise you wouldn't try to state something like that; The timings on the fixing and bans are probably higher since they have a HUGE team working 24/7 to please the community under those aspects and try to compare such a status quo to a private server is just... Ridiculous. This is completely irrelevant to the thread as it is though so I'll leave my thought roaming around this lines.
If your currency is about to be squished that means that the markets will need to adapt themselves to the new circumstances and reflexes of that start to happen;
- New perspectives of market open up; New materials, recipes and pieces of raw product (gear) will be listed and chased for.
- The gold flux needs to open even more and players will start to open up their gold wallets in order to make the market work again.
- Inflaction might be a reality in the first week but the inflaction will also be broke by herself since the currency can't keep up with such inflaction - This directly translates to an instant drop of market values and that also means that gold will flow naturally after the initial shock and desbelief of the market users.
- Increasing the grinding system also declares a clear opening for more people to grind for more materials and calibrate the market values properly according to the grindings - This doesn't directly translates to a proper market value but that's because most of the people using the AH don't know how to apply their prices and currencies.
- The most crucial point and that people fail to recognize; Even with the gold squish happening, the chance of investment still exists. If you know that a product will be crushed why would you keep it with you? Distributing your investment in a proper way around the multiple items of choice and applying a smart value strategy around the AH will not affect your gold sustain AT ALL.
This are a few examples that you learn in a simple economic class however I start to believe that most of the people sitting in this thread either skipped or still didn't have them. The initial shock will always happen but it won't take long until the gold rates come back to normal. The new players will embrace the reality as it should be in the first place and the veteran players will actually have something new to do while being a casual (if that's the case). Declaring the death of a server because of this specific change doesn't seem something that a true "Mathematician" and accountant would do since you would also think about the income that the server will generate through this.