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Yes, it is theorically possible to fare very well without buying any AC (Arks Cash, the purchasable currency).
Actually, AC doesn't give you any direct improved gear whatsoever: most items are just for flavor, except 2 things: ability to sell your items on the players market (by extention, Premium set) and Inventory extention.
Be aware however that the game allows little to no mistake for character improvements, so think twice before selecting X or Y skills (talents if you prefer) because you will have to pay if you want another skill tree.
That said, buying AC can give you a tremendous boost depending how good you are with market value of items you might find. To be honest, grinding Meseta (the in game currency) can be quite a chore, and thus you will have to spend much more time on grinding in order to have enough money to buy what you want.
That said, if you aim for pragmatic stuff, it isn't too much of an issue. However, 3 specific points are extremely expensive:
-High End gear fully affixed with best abilities
-Upgrading rare items (known as Grinding items, and affixing abilities)
-Fancy items (costumes, accessories etc).
No, there isn't any PVP. The game is unlikely to provide one, considering how it would be unbalanced (no, clones aren't even close to a pseudo PVP).
Mobs and Bosses don't really need a gear that you would direly need AC to make/buy them, provided you know how to play and you get a decent gear (no everything maxed whatsoever).
Generally speaking, high end gear is more like being more efficient, but you definitely can fare well with non rare items, especially the ones you can find in the matterboard (story mode).
The grinding is basically fine by itself, albeit it is drastically different depending if you have access to the player market privilege or not.
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