Second Life needs stable currency

That's extremely unlikely. Let's look at a few cases:

Suppose someone purchases a flat mature mainland sim from LL at the no competition bid price of 1000 $US. Assume also that this sim has no Linden Protected Land in it (remember such land can't be sold and subtracts from the land available for sale).

Sims are 256m square. 256 * 256 = 65,536 m2

So you have paid 1000US$ for 65,536 m2. Currently the L$ to US$ conversion rate is 297L to 1US. So you paid the equivalent of 297,000L for 65,536 m2--or 4.53L per m2.

If you were to sell that land at a 300% mark up, you would be asking 18.12L/m2. (Remember a 100% mark-up would be double what you paid; a 200% mark-up is three times what you paid, and a 300% mark-up is four times what you paid.)

Obviously, no one is paying anywhere close to 18.12L/m2 for normal land. If you bought a sim with a lot beach land, you might be able to get that kind of money for some of the sim--but you would be paying substantially more than 1000US at auction. And such as sim would likely have Linden Protected Land, too.

And note all the above completely neglects the impact of tier you pay every month--in US$--until you sell the land.



Okay--looking at your proposed model, we take the maximum square meter figure for a sim: 65,536 m2, and your purchase price: $1500US--or 445,500L. That yields a cost per meter of 6.8L. At a 200% mark up, you would be selling that land for 20.4L/m2. However, I'll make the charitable assumption that when you said "200% markup" you really meant "twice what I paid for it". That would put your land sale price at 13.6L/m2.

Get ready to cash out a lot of L$--you are going to be paying tier on that land for a LONG time…



Is it possible that you might just lack a complete understanding of the land business in SL, instead?

this would be a vendor scripter's nightmare.

Thing is, A$ would be the same, as Anshe's described them. By moving A$ around you'd be buying and selling ownership of the "silver Euros" that were backing the A$. Ie, ownership of real currency changing hands = gambling/tax laws are active.

This idea is the winner of the most transparent BS idea ever award.

*breaks the windows of the building next door.* Ya'll better come live with me it's safer here.

Kinda like the dictator wannabe who hires thugs to tear up the streets and then tells people to vote for him to bring back law and order.

I wont accept and chung dung at my shops. Thank you. Carry on.

Have you any citation of authority, or even an explanation of this opinion? I'd be interested to read it if you do.

If Anshe currency is illegal, does the same principle apply to Lindens, or other forms of "plat" in MMORPGs? If not, why not?

Frank

It's same IRL.



You're complaining when you have to follow the mass, but you suggest to "wait and see" and follow the mass? huh ?





There is more offer than demand, then the value is dropping.
No need to be an expert to understand that.




The value go down sometimes because the sellers are slowing done their L$ sale.
The sellers are fighting "against" the market, trying to artificially raising the L$ value so they can sell their L$ for a few more US$.




Solved ? huh ? where ?

The only A$$ i need is firmly attached to my wife, thanks though.

You don't need your own?

Sitting must be uncomfortable.

The liden value has been on a decline, some say it will go back, some dont. Only time will tell.
Take a look at the stats for March 30,2006

Daily Summary:
Best buying rate: L$300 / US$1.00
Last trade: L$300 / US$1.00
Last close: L$301 / US$1.00
Change: -L$1 / US$1.00
Today's volume: L$4,997,660
Today's open: L$301 / US$1.00
Today's high: L$939 / US$1.00 <-------HONESTLY who the F is doing this?
Today's low: L$296 / US$1.00
Today's average: L$299.48 / US$1.00

This is definately an aggressive move to incite economic fear, and disrupt averages for everyone. This is the kind of BS that needs to stop.

I just noticed this.
That's not precisely what I said. I was responding to an assertion that the only reason to sell for significantly below market was to manipulate the economy by citing Anshe Chung's message, where she said she needed to sell a large number of Lindens quickly and so needed to sell them cheaply enough to be sure they would go through.

I didn't make any claims that she was the only person doing it, nor that she was doing it on a regular enough basis to be responsible for driving the value of the Linden down.

I'm not saying she is or isn't, I'm just saying that's not what I said.

is it a nice A$$?

Blakar I understand what you're saying, but I also noted the part about third party exchanges. She won't have total contol over price once it starts getting traded.
She could do all manner of Machiavellian things, but long-term, it could be more profitable not to, ie she might make enough playing it straight.

That's strange b/c u just bought three more sims. I think, u think, ur future looks good; and I hope ur right.

Marc Woebegone

This all boils down to trust and I do trust LL so I wont take any part in this scheme.

Hi Selene!
Let me put it this way... what *if* putting a dollar in her pocket also put a dollar in yours? Just because someone is considerably more wealthy doesn't mean dealing with them can't be mutually beneficial. What if it worked, and was more stable than the L$? What if you could set a price, and be more confident in how much that will ultimately worth?
I'm not particularly for this, but I'm not against it either, especially not based soley on where the idea originates from. I'd be interested in seeing where it goes. If people start trading in it, well then so will I.

Shouldn't this be moved to notices? It's crazy how much Anshe can get away with.

Hi Fade!

In my case that isn't the point. Sure it could be mutally benefical. However, I do have the right/ability to decide who I do business with for whatever my reasons may be. I chose not to do business with her based on what I have seen with my own eyes. It is a risk I am not willing to take.

Hi Anshe,

A few questions for you. My apologies if you've already answered them, but the noise of 18 pages of chatter is just a bit much to read through right before bedtime.

1) What rule of law is ANSHECHUNG Studios, Ltd., under?

2) Can your company put up a surety bond with a disinterested third holding party to insure against an event where the entity ANSHECHUNG Studios, Ltd. were to go into bankruptcy or receivorship? The bond would need to be held with the holders of the A$ having legal first rights. What percentage of transactions would you insure in this fashion? If not, how would you insure the A$? Stating that ANSHECHUNG Studios, Ltd. holds both the Silver Euro and the A$ begs the questions of transparency and of legal chain of ownership. Even E-Gold uses a seperate vault to hold their secured gold. (Goldfiger)

3) What independant auditor will you be using to verify the reserves and transactional integrity of trades through ANSHECHUNG Studios, Ltd.? Who will have access to those reports?

4) What will the fee structure be for: a) Account establishment; b) Account maintenance; c) purchase of A$; d) internal transfer of A$; and e) withdrawal of A$ into other national currencies?

5) What is your anticipated float? In other words, what percentage of withdrawable currencies (as compared to the Silver Euros) do you expect to keep onhand? If the account is backed by Silver Euros, then you will have to have a float of alternate currencies on hand to handle transactions. The percentage level of these alternate currencies will often determine the speed at which a request for A$ to, say, USD$ transaction will go through.

6) In relation to the question above, do you anticipate needing market makers to handle transactions, or are you going to act as the sole market maker? If you are going to use outside market makers, then how do you anticipate handling the questions of margin and accountability?

7) At what level will you be backing the A$ with Silver Euros? 1:1, 1:0.5, or a different ratio?

Will the A$ be a fixed currency, or will it be alowed to float somewhat? If it is fixed, then have you already anticipated the large scale stockpiling of A$ that may be necessarry on your end to effectively fix the currency without damage to it's liquidity?

(Yes, I am an investor, and we do ask a lot of questions.

Thanks!

-Catnip

Because these are such excellent questions, I'd love to see them get an answer in a thread of their own and not get spammed under in this one.

I think I know the answers to a few of them, but having me guess will be a lot less useful than Anshe Chung answer with authority. *smiles*

Fair enough. I was thinking about it some more while I was out doing RL stuff. I was thinking, even with third-party exchanges, having the same person controlling the supply of currency and at the same time being the largest landowner is probably not a good idea, regardless of who that person might be. Initially I thought it may gain a life of it's own, and some of that control would be ceded to the market... but... when they dominate the land market as well, that's a bit too much at one person's fingertips.

I think you are beginning to see where I'm coming from

Actually you may be buying a... currency derivative ... ? I'm not quite sure what you'd be buying yet to be honest, but I'm trying REALLY hard to figure it out. Whatever it is, I'd be willing to bet L$1 that it would be legally defined as securities, as long as the instrument is backed by euros or silver or etc.

Don't get me wrong, I'm not even sure if I'm for or against "A$" yet. I'm inclined to think that it would probably accellerate the downward trend on LindeX, after which it would likely go away through lack of adoption, forcable removal by LL, or legal action against LL or ACS. Neither of these occurances would be perticularly bad for the long-term health of the economy unless the A$ got a whole LOT of traction and then failed to go away though.

LoL!

I believe I can reliably answer #1. The rule she operates under is Caveat Emptor. As for which rule of law, she may have moved her holdings to the Principality of Sealand. Little does she know that may wife is a Baroness of Sealand (yes, we payed out the A$$ for the noble title).