LOL, then what else would you use karma for then, in a trade-able form?
That's the point your logic seems to be lacking in, my friend. The simple fact that for a lot of people. A LOT of people, karma is currency they don't need, so they launder it into a currency they can trade. Its just another way to earn money in the game, which is actually clever, otherwise you're sitting on a currency you can't use otherwise.
No, karma's being phased out because it can make its way into the in-game economy via gold. It'll be replaced with tighter control methods like laurels.
Actually the most profitable karma trade is for simple salvage kits. For a mere 15 karma you can earn more than enough silver and gold, if you were really being staunch about saving money, to make it worth your while all while gaining luck which in turn increases profitability as well. Since most gear is greens, blues, or whites there's no value to breaking it down with anything prolific.
What most people missed is that when times change so do currencies and their values. It is by far faster and cheaper than trying to convert them out of boxes that now are filled with not-so-tradeable things. Since this assessment was never done by most of the population it was missed entirely.
Also to add to this conversions themselves weren't supposed to be possible. They are, but they weren't supposed to be, I mean one laurel is worth probably one gold if you convert it using the T6 mat bag. You always made more off of laurels than you ever did off of karma. This is why everyone's logic is so poor; karma is being phased out because ANET has nothing to do with it not because of the "cleverness" of players. Once a day you're guaranteed about 1g for doing less than 10~15m of "work" completing empty tasks while the conversion ratio for karma was always somewhere in the thousands and this only suffers even more with the lowering of prices for lodestones and the increase in loot from champion boxes.
If my logic lacks, that's fine, but at least make sure my logic is genuinely lacking.
I used karma quite a bit. Are you saying that because it wasn't popular, it is therefore useless? It's just a back-up method of purchasing things so you don't have to rely so much on gold or gems. It was a good thing.
Not really. Karma had two major sinks: Orrian Sets and Legendaries. At least after the major purchasing power nerf. I mean yes I bought Orrian sets but I wouldn't be the first to say that I "used Karma and it was imperative"; no, the meta and most builds even at the time weren't using this crap.
It just never panned out to anything.