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Virtual Currency

Are Linden dollars real money?

By Erica Naone

Are the Linden dollars I discuss in my article on Second Life's economy real money? Linden Lab itself seems confused by this question. The company has encouraged people to think of the Linden dollar as real money by running the Lindex (where Second Life residents can trade Linden dollars for U.S. dollars), and by including a section on its website about business opportunities in Second Life. But it also carefully avoids legal responsibility through the language in the company's terms of service: "Second Life 'currency' is a limited license right available for purchase or free distribution at Linden Lab's discretion, and is not redeemable for monetary value from Linden Lab."

What I take from this is that Linden dollars are real money as long as Linden Labs allows them to be. For as long as they have an exchange rate with U.S. dollars, I can transform a virtual income into a real-life income. On the other hand, depending on Second Life for income is a risky illusion. Linden Lab's terms of service notifies users that the company can pull the rug out from under a virtual savings account at any time. No virtual income is safe as long as it depends on the whim of a single company.

This no-man's land -- where money is real, but only as long as it is allowed to be real -- is fascinating to me. I sometimes wonder if so-called real money is also a shared illusion -- the difference being that real money is backed by governments rather than companies.

Tags: second life

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a comprehensive theory of money

read about a comprehensive theory of money.
its not quite what you think it is. about inflation, deflation, panics, runs on the bank.

so far, hackers are slow to discover the ultimate machine-- our money system.

read it free--

a paper I wrote called "fractional reserve banking as economic
parasitism"

endorsed by two phd economists. printed in nexus
magazine, 60k world circulation. #1 top downloaded
economics paper. used by economics
teacher in australia as standard classroom material.

more info on request.

"fractional reserve banking as economic parasitism"

http://econpapers.repec.org/paper/wpawuwpma/0203005.htm

recent supporting material: "confessions of an economic hit man"

http://www.democracynow.org/article.pl?sid=04/11/09/1526251

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vzn
08/08/2007
Posts:4

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believing in money

"Real" money has value only because we believe and trust it has value. A $20 bill is only paper, worth nothing. The value is in the characters made by ink that we perceive and trust. Don Bailey, Denver

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jeep1104
08/14/2007
Posts:6

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Second Life and the Greatful Dead

Not saying that SL will end anytime soon, however, there were a lot of people who sold hotdogs in parking lots (made money indirectly from the G.D.) quitting their day jobs to join a following. Once the ride ended, there were many lost souls trying to figure out what they were going to do.

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willettte
08/14/2007
Posts:1

One thing that a lot of people have missed in this recent economic down turn is the fact that in-game money for all of the massive mutliplayer online role playing games has not been effected. I guess it just shows how strong and stable the computer game industry really is.

Virtual Currency

Virtual Currency

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symonds
04/28/2009
Posts:2

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