Why the L$ is overvalued now, and why 3rd party currency will fail.

I see the falling L as a correction, let me explain:

If I buy a 72$ yearly account consider the following,

500 Ls per week * 52 weeks = 26,000Ls
26,000Ls / 72 USD = 361.11.

So at any Lindex rate less than 361.11 getting a yearly account is making profit. Anyone knowing this is selling off L$s at the current rates realizing they are still making profits.

Hence I think any rate less than that is overvaluing the L$, and it will stabilize someplace around 350/1.


Secondly I think any attempt at a secondary SL currency is going to fail, and i'll explain why.

If I started creating money I have two choices.

#1 the market could determine how much something is worth (IE. how our money works for purchases, prices go up and down as money is considered easier or harder to come by)

#2 I could peg the currency against another currency (IE. what China is doing with it's Yuan against our USD, thereby stopping it from fluctuating.

Well, #1 is exactly what the L$ is doing versus the USD. Any value of a new currency with a floating value would be supject to the view of consumers just like the L$ is. Might be higher, might be lower. Unless all vendors in SL could take "my dollars" their value will still fluctuate directly in tune to the L$.

And #2 would work like this:

1 "my dollar" is worth 1 USD. But SL gives out stipends in L$s, so i'd have to exchange those L$s for USD or "my dollar"s. Which means 300Ls to 1 USD would equal 300Ls to 1 "my dollar".

So in the end any new currency will likely have no benefit over L$s and USD.

let me add #3

As a vendor I have big concerns with A$ and honestly have not decided if I would take them or not. I don't have enough information.

As I understand things if I chose to take A$ I would be given a dcript to put in my vendor so it would take A$. Now in order for this to in any way work for me I have to convert those A$ to L$ or US$.

NOWHERE has she mentioned what her fee will be for such a conversion. She is a business woman and would be completely foolish and out of character not to take a cut, either in a bad exchange rate or in a processing fee. Question here is can I live with her cut?

I have dealt with Anshe before in business transaction and been quite satified. BUT I have always known up front what kind of a hit I was taking in accepting the transaction.

As a vendor its a big issue. Even though I do not do business in ANshe run lands and so theoretically do not HAVE to take A$. Alot of other people do live and sell in her properties. If they are required to do so in A$ they are going to spread into the rest of SL and want places that take A$. It's a tough decision for a vendor. Risk Anshes cut on A$ conversions or risk losing sales.

At this moment I am in wait and see mode.

If it fails, it fails , its no skin of our noses if it does or doesn't - if you don't accept it as tender (and I for one won't) then its biz as usual for the rest of us.

if it all falls down in a screaming heap - we can sit on the sidelines and giggles.
if it takes off - won't make a diff to me coz I won't accept them.

At the end of the day - she ain't THAT big for it to matter.

Having spoken to the family now we have decided we are with you on this one Siggy. Dragon Isle and its vendors will not accept A$ should this come to pass.

Hey siggy if you bring the popcorn I will bring the beer and we can sit back and watch the show.

I'll bring some glasses then, and home made pie.

I'm with Siggy on this one. As will never be accepted in any of my stores or by any of my vendors. I don't do business with Anshe nor will I ever.

No one's bringing pizza? I want Pepperoni, mushroom and sausage with xtra cheese please.LOL