I see the L$ is losing value again

Only L$301 to the US$..... dear oh dear, what went wrong? Where did those great days of L$340 disappear to?

Lewis

Depends on your point of view... to those who want to cash out to make tier, it's gaining value.

And I bet those that put their prices up when it was L$340 aren't in any hurry to put them back down again now its about to hit L$300.

But to those who buy - the vast majority - it's losing value.

Lewis

Tiger i think he was being sarcastic. The ability to buy more usd > L has gone down you get less L per usd but more L > USD then b4. In a sense yeah lewis to the consumer USD > L loses face when this happens. Consumer wise value of L is going down in a sense but for those selling the L its going up.

No Lina... he's serious...


And Lewis... please tell me how you know it's the vast majority who are actually buying L$...

Yeah i saw after i posted he posted a response while i was lol and yeah it varies depending what side of the fence your sitting on in this situation. For Consumers less bang for your buck for sellers more buck for the bang.

Don't forget all the creators who pay for vendor space in L$... the higher the value, the less they need to pay for the vendor space... (also means lower prices for the consumer, meaning the higher value isn't as bad as you might think)

kaz no real point to add more sinks it wasnt really due to money coming in and i think that has been proven over the last month as premiums still get all their stipend and that. It was still dropping with dwell cut down massively and ratings bonuses and the developer incentives going poof so sinks or limiting basic accounts didnt really help anything other then putting idea's in people's heads which seems to be what drives lindex more then anything else.

Prices havent really fluxated much as far as buying things over the last year really. New stuff (better) got developed and prices went up for the newer stuff but thats about it.

On the contrary... some creators did put their prices up on their old items when the value plummeted.

The question is, now that the value is back to pre-panic levels, are they going to put the prices back. (and the vendor spots, some big names doubled their rent... are they going to do the smart thing and reverse the increase?)

Because of the money circulation latency it takes time sometimes. This L$/usd gain is clearly about removing basic stipends, dwell and increasing population. Nothing else.

I'm in favor of it. I sell things.

I'd like proof of this first off. I dont think you were around for rating bonuses. Used to be a whole whole lot more L coming into the system back when i first joined and the value was closer to 250L > 1 usd care to explain that 1? Increasing the population when most of them arnt providing payment info is not going to have a huge incling on the value of L neither will removing 50L per basic account. I think you play into the common misconception of the supply side being to big but if that were true then the L wouldnt of climbed up as the supply is still increasing.

And tiger very very few creators bothered as they know the risk. The ones that did are usually the ones that are here for a business perspective only and couldnt really care less. Kaz there is a few key points of your point that actually dont make sense if you look at the spectrum over the last year. As they cut L out of the system more and more the price dropped substnatially and now its just starting to climb back up in value its got nothing to do with the population dwell or basic stipends at all.

A very large porition of the L actually going down in value was caused at several panic moments. The first being LL getting rid of GOM. Value has increased but i dont see a purpose to have it at the linden's magic number of 250>1 and its going to fluxuate it means its healthy. There were several panic periods and the folks screaming the sky is falling didnt help things along.

Look at the trend and look at who the main posters are. See the problem with you saying that is all it was and nothing more comes into the fact that the market can go up if sellers want it to ultimately they may have to wait for it to sell but they can definately make the value go up. Alas most people arnt that patient and thats whats going to cause the L to fluxuate more as people are now able to fill orders for L its a bit easier to get the value up and the is more likely to be the case of what is raising up the L not the removal of money.

Look at it from a diff standpoint to. Removing basic stipends (i heard they added startup bonus if you verify now) gets rid of some potential customers. You also run into the fact that if folks have more money they are more likely to buy said product if prices are kept the same thus you may see an increase in sales. There is the fact that over the last year things went downhill after they cut out alot of money from the system already. Now according to most theories out there it would seem this should of caused the L to spike higher in value instead it dropped. As i said again its really got nothing to do with the L but rather people.

Long post, i see where you are missing but it takes 5X your post to explain all and you will reply X5 longer post. <- No need.
Just one sentence: Dont be stuck in the history.
and a suggestion: dont do investments based on your parameters, else you will lose money. No offense.
You are caring only about visible side parameters of the economy.
But all economies have visible and invisible side and main parameters.
And if you are a good businessman RL or SL, you must be seeing short term and long term effects of these parameters.
I am glad i saw when L$ would lose value and gain value and took necessary actions. And this is why my business is improving so good on such a fluctuating economy.

Now, last word to LL, it is time to add MORE SINKS. Dont wait for bad days to act.

Why?

Players having money means they'll spend it.

If you have to waste money on more sinks like you do uploading textures and sounds - many of which create the content that makes SL what it is - then people are going to be less inclined to do things "just for fun".

When people stop thinking about the creativity and entertainment value of SL, and purely think about how much money they are spending/making... SL will fail.

What is it with people wanting to take money away from the people who need it and use it? We don't all make a living via Lindex, you know.

Lewis

LOL Noooo...
Actually, it works more like this, using a fictive example:
- You want to create a mall
- You buy land, with a monthly fee of 50 USD. You'll have to pay this in USD, while collect the rents in L$'s.
- You build the mall and partition up the space. You calculate that if you have 10 spaces, each needs to bring in 5 USD/month in revenues (or more), and some more, for profit
- You add the exchange fees, etc, and calculate the rental fees in L$'s.

So there you have it. Rental fees depend on L$/US$ rate, and will change if the rate changes.
Renters will not pay less, only less L$'s, but that will be equals to the same amount of USDs.

you enjoyed it while it went your direction suck it up while it goes ours

I was talking about them paying less in L$...

Thanks for explaining it in detail though.

Oh, sorry, that's my bad. I misunderstood it, got the L$ and USD mixed up for a bit
So you're right, prices of products might decrease in L$'s (due to lower rental fees), but it'll cost the same (in USD) for anyone who buys products with L$'s bought with USDs.

Kaz i gotta quite agree with Lewis there is no reason to take money away from people. Sinks wont help any it'll just be another way to get L out of the community that rather doesnt need to be removed. All the removal of the stuff really did was restore some confidence in people for lindex and thus the price went up volume of the L is still going up mooting most people's arguments that volume of the L is the problem. If things become to focused on the business end in the interum long term scheme of things SL will fail. If they become to based on entertainment you have more content creators actually, which isnt necessarily a bad thing these guys would all just be doing it for fun. But then SL loses its business appeal to a majority of people and becomes less and less profitiable.

There has to be a happy balance and thats whats good about the economy being able to fluxuate in the sense that it does. I'm fine with business in real life, but i dont take SL to the business end of things. In fact i run a club and we do it for fun not money. Sure we have escorts and the like but any money really made if we do take a cut or earn stuff is put directly back into upgrading things in the club and or giving those employee's some type of tip/bonus. I agree focusing things to much on business is bad but at the same time focusing it to much towards entertainment only is as well.

I run into the thing I'd like to see more people here for fun rather then money or popularity. Thats the one thing i think most people fail to take into account with economic discussiosn is the social structure of SL as it is.

Lewis...

The value of the USD decreased. Not the L$, which increased.

Edit: You know that the intended range was supposed to be around L$200/USD right? we're in a state of inflation.

No. Just as the price of gasoline in the united states is never going below 2.70 per gallon again.

that around the same time the universe will fail.