L$ Dropping Precipitously Again

Daily low $3.62

Daily average 3.74

L$ dropping pretty significantly below indicated L$250 / $1 USD Linden Labs "Targeted Rate"

so?

Don't know about the other money exchanges.. but have you looked at GOM's new interface and the ability to buy partial amounts from posted blocks.

No longer is the amount of money you're selling a commodity - it no longer matters.

Looks to me that the end result is you just post one big block until its sold.

So no more putting up smaller blocks with a higher price and selling for convenience..

I think partial fills are driving the market down. I imagine more people are using the option to sell instantly which drives down the best listed buy price. People who sell at a set price tend to look at the highets listed buy price and set it a few cents higher than that. The net result is that prices are plummeting. I could be completely wrong but the precipitous drop started at the same time GOM changed to the new system. It used to be a seller's market. It's now most definitely a buyer's market.

I don't think LL ever had a target rate, more they wanted a stable rate. That is the biggest queston, will the L$ ever be stable? I for one think that won't happen untill the user base is much much bigger. Until this happens, the value will swing... it is what happens when just a few L$ more going to market then being sold on market can drop the price that much.

I must say I hate the new system. It has taken all the fun out of using GOM. I might as well use IGE and I have used GOM since it started, but the draw of GOM for me is gone with the new system.


Anyway, the dropped happened before the new system, when probably one person put 2 million in 100K blocks on GOM. The system changed a few days after that and the Linden has been struggling every since. I don't think we have seen bottom yet.

Hey gee, no money sinks.

Hi hello, welcome to economics 101...

LF

It is a great time to buy!

That is how you have to look at it. If you really want to have some fun, maybe now is a time for buy and hold? Or maybe you should cash out all you money while the market still has some value to it? Or maybe you should just say so what, it happens. The value of the L$ will change over time. One of the biggest ways to increase the value is not to sell any L$ and not take cash for in world items. Or maybe it is just a cycle.... or maybe it is Friday, and I don't care, and neither do most people. I think most people will only care if SL shuts down for good.

I agree I think the new system is in large part responsible for the drops, I thnk it creates a monopoly for one person with a large amount of Lindens.

No money sinks??? How do you figure? There are plenty of money sinks in SL. Uploads, listings, first land, sim rentals, plus all the money that goes away in banned/moved accounts. So don't tell me there are no money sinks.

I dislike the new system as well.

Also the fact that there are no money sinks compounds the problem.

We are well on our way to a $3 USD per $1000L market.

How do you figure? If anything I think it helps people. Trades are a lot quicker now. money flows a lot quicker now back and forth. People with large amounts of money before would cause the market to drop. People that dump a large amount of money on the market cause the market to drop. What has changed?

I suspect that uploads, listings, and first land are not significant money sinks.
Sim rentals is not a money sink for $L.

Sim rentals aren't? Where does the money go? http://secondlife.com/land/rental.php

PS, I forgot Land Auctions, that is another money sink.

I did not realize which sim rentals you were refering to, my bad.

How often does LL rent those sims? I NEVER hear of people using them.
Even if they rent 2 per day, it is a totally insignificant sink of $L.

How often are those sims rented? Any by how many different users?

Well, I think this program is a new one. I just happened to come across it while looking around. I think that it will take as much money out as the auctions did, if not more. With something like 330 Million L$ floating out there, a few million drop on a small market is nothing to worry about. I have my trust in LL.

Exactly my thoughts too.

The Linden Sim Rental Program has been around for hmm probably close to a year. I believe it was just finally added to the website.

Lynn Lippman use to rent them occasionally to hold a 2 day flea market renting out vendor space to anyone wanting to participate. I believe she did it twice but at the time you did not receive the dwell from the rentals. I don't know of anyone that has rented them since.. although they may have.

It seems kinda expensive at 3 to 4k a day with a min of 3 days rental required especially if you needed more than 1 sim.

Ok, so I may be wrong, but it is nice to know that it is out there. 12k for a 3 day event is not that bad, better then buying a sim for a small event. I think the word just needs to be put out more.

A 25% drop in the value of the L$ would probably have a significant impact on the business community.

Hell, this relatively small 8% drop (from $4.00 USD) has had an effect on my profitability.

I suppose it would depend on the type of event.. Is it an event that is capable of running for 3 days straight? Or is it only going to be a couple hours a day. And consider the fact that you can only get max of 40 people in the sim. I suppoe if it were like a flea market it would work because of the amount of prims available and the flow of traffic. Tringo marathon i'm not so sure.

If we had a proper way of enforcing in world aggreements we could take some of the money dumped on the GOM and hoard it, then we could creat a whole industry of lending and investment banking. Even have a securites system. I think a lot of MOney would come off the GOM as people sought to get richer. Right now at least, there is no way to make the money work for us.

I agree, there needs to be better flow of money in SL. I don't think people see a need to spend money in SL, most things people want are free. If there was a way to incourage people to hold money and not sell it, the people that do sell would be better off, and maybe so would the entire community.

I actually like the new system, in theory. It makes sense. The problem as I see it is that it gives the immediate gratification crowd much greater sway over the market.