Easier currency exchange coming
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Dark Korvin
Player in the RL game
Join date: 13 Jun 2005
Posts: 769
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08-31-2005 17:26
I see some posts that seem to imply incorrectly that currency is about to no longer be exchanged at a variable rate. I highlighted some excerpts from the town hall transcript with subject titles that represent what I think the quoted exerts talks about. I'm just doing this to make some points easy to find out of the transcript. There are other points made, so if you have time read the transcript that can be found here: /3/dc/59668/1.html Reason for Change From: Jeska Linden Philip Linden: We believe that the current process of visiting a third party site,
Philip Linden: creating an account,
Philip Linden: and giving out payment information
Philip Linden: is far more work than most people will be willing to go through to buy something that is worth 50 cents.
Philip Linden: This would be like visiting a third party website to buy currency to be able to return to ITunes and buy a single song track.
Philip Linden: So we think that if we make it really easy,
Philip Linden: we will put many more dollars into the pockets of content creators.
Philip Linden: And by doing that, grow SL faster.
From: Jeska Linden Philip Linden: We do NOT have any intentions of restricting other sites or residents from selling currency
Philip Linden: - we think that a competitive market for currency sales totally makes sense. From: Jeska Linden Philip Linden: We also do NOT want to set or in any way control the price of L$.
Philip Linden: So this means we will create a simple mechanism that lets sellers of currency set the price they want, and they automatically passes along best price to interested buyers. From: Jeska Linden Philip Linden: Moonshine Herbst: Will we still be able to get the USD paid to our PayPal accounts just like we can now with GOM & IGE?
Philip Linden: A: Yes, I think we should be able to offer the same capability.
Philip Linden: Maxx Mackenzie: What happens for users like me, where Paypal is not an option...
Philip Linden: A: I don't yet know what options we will have for payment. We'll make every effort to support the widest set possible, especially given that SL has so many international users. From: Jeska Linden Philip Linden: Lisse Livingston: Please clarify whether LL will be buying $Ls as well as selling them - and the methods that will be used to credit the sellers with their US$.
Philip Linden: A: Explained the payment-to-sellers options already. LL will always just facilitate a transaction between buyer and seller. We will not 'hold' the currency, set pricing, or create new L$ to sell. From: Jeska Linden Philip Linden: We can't just build an API that allows anyone to sell anyone anything
Philip Linden: and put it on their LL credit card account.
Philip Linden: This is because we would have chargebacks caused by resident disputes,
Philip Linden: and that would instantly put us out of business...
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Talen Morgan
Amused
Join date: 2 Apr 2004
Posts: 3,097
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08-31-2005 17:57
From: Dark Korvin I see some posts that seem to imply incorrectly that currency is about to no longer be exchanged at a variable rate. I highlighted some excerpts from the town hall transcript with subject titles that represent what I think the quoted exerts talks about. I'm just doing this to make some points easy to find out of the transcript. There are other points made, so if you have time read the transcript that can be found here: /3/dc/59668/1.html Reason for Change Will other currency exchange sites be allowed to still trade? Will the price of Lindens be set by LL? What ways will the my country's currency be transfered to me? Is Linden buying the currency or are residents buying the currency? Will I just be able to use my credit card to buy items?GOM, IGE, and Anshe and any other currency exchange will fold....heres the main point: LL won't be adding this as a free service...there will be a service charge added onto either the buyer or the seller or both....now tell me who is going to buy money and pay 2 service charges? GOM won't be able to comepte ...nor will the others especially when they will now be competting with every user on the grid that wants to sell money. Second clue: the more users selling money means the linden dollar will fall Eventually LL will be the only currency exchange in town 
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Dark Korvin
Player in the RL game
Join date: 13 Jun 2005
Posts: 769
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08-31-2005 18:50
From: Talen Morgan GOM, IGE, and Anshe and any other currency exchange will fold....heres the main point: LL won't be adding this as a free service...there will be a service charge added onto either the buyer or the seller or both....now tell me who is going to buy money and pay 2 service charges? GOM won't be able to comepte ...nor will the others especially when they will now be competting with every user on the grid that wants to sell money. Second clue: the more users selling money means the linden dollar will fall Eventually LL will be the only currency exchange in town Well my point for the quotes was just to make it easier for people to see what Linden actually was saying they were doing without having to read a whole transcript. I agree that GOM may not be able to compete. This is not a given, as you don't know yet if Linden's version will have everything GOM has. You are implying that linden dollars are only going to be sold. If you read what is being said, lindens are going to be exchanged between RESIDENTS with Linden acting as a facilitator to the exchange. This means more people both BUYING AND SELLING. You can't say that there will be more sellers than buyers just from knowing that there will be a currency exchange. I think the Linden will rise and fall in value like it always has. By the way, GOM charges a service charge. |
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Talen Morgan
Amused
Join date: 2 Apr 2004
Posts: 3,097
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09-01-2005 04:50
From: Dark Korvin Well my point for the quotes was just to make it easier for people to see what Linden actually was saying they were doing without having to read a whole transcript. I agree that GOM may not be able to compete. This is not a given, as you don't know yet if Linden's version will have everything GOM has.
You are implying that linden dollars are only going to be sold. If you read what is being said, lindens are going to be exchanged between RESIDENTS with Linden acting as a facilitator to the exchange. This means more people both BUYING AND SELLING. You can't say that there will be more sellers than buyers just from knowing that there will be a currency exchange. I think the Linden will rise and fall in value like it always has. By the way, GOM charges a service charge. I never implied I know they will be selling and buying ...well the people will and I know GOM has a service charge as well do the others just built into their price....and thats the point...who will buy money from third parties like GOM on the Linden owned site and pay a service charge to GOM and LL?....no one. I didn't say there will be more sellers than buyers just there will be more sellers in general.
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Build a man a fire and he'll be warm for a day...set a man on fire and he'll be warm the rest of his life
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Javier Puff
Xcite!
Join date: 7 Jul 2005
Posts: 86
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09-01-2005 06:36
"Second clue: the more users selling money means the linden dollar will fall"
I'm curious, what is your reason for thinking this? Lots of people already sell off L$ and by watching the economic trands and adjusting inflow and outflow, LL has thus far managed to keep the L$ reasonably stable. Can you back up that statement with some kind of proof, or is this just a guess? I'm having a problem understanding why having more people doing what a bunch are already doing will crash the value of the L$.
- J
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blaze Spinnaker
1/2 Serious
Join date: 12 Aug 2004
Posts: 5,898
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09-01-2005 07:58
Right now you need to find an ATM or hook up with an IGE rep.
Pretty soon, it'll just be one click sell currency.
Philip is asleep at the wheel. None of this blow out was necessary.
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Taken from The last paragraph on pg. 16 of Cory Ondrejka's paper " Changing Realities: User Creation, Communication, and Innovation in Digital Worlds : " User-created content takes the idea of leveraging player opinions a step further by allowing them to effectively prototype new ideas and features. Developers can then measure which new concepts most improve the products and incorporate them into the game in future patches."
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Dark Korvin
Player in the RL game
Join date: 13 Jun 2005
Posts: 769
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09-01-2005 09:27
Okay, I may of misunderstood that you were only commenting on there being more sellers. My point is that it will also be easier for more people to buy. You have both an increase in demand and an increase of sellers of the existing supply, so it is wrong just to assume the price is going to go down. The fact that a new exchange is opening alone is not enough to say what the value of the Linden will do. There are other side factors that suggest the linden might fall temporarily, but even that is only a guess. It being an integrated exchange tells you that more people will have money at their fingertips when they see content they want to buy. More trade is not just more selling. It is both more selling and buying.
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Talen Morgan
Amused
Join date: 2 Apr 2004
Posts: 3,097
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09-01-2005 13:40
From: Dark Korvin Okay, I may of misunderstood that you were only commenting on there being more sellers. My point is that it will also be easier for more people to buy. You have both an increase in demand and an increase of sellers of the existing supply, so it is wrong just to assume the price is going to go down. The fact that a new exchange is opening alone is not enough to say what the value of the Linden will do. There are other side factors that suggest the linden might fall temporarily, but even that is only a guess. It being an integrated exchange tells you that more people will have money at their fingertips when they see content they want to buy. More trade is not just more selling. It is both more selling and buying. thats just it ...there will be much more money at peoples fingertips and very easy to get.....
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Build a man a fire and he'll be warm for a day...set a man on fire and he'll be warm the rest of his life
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