Second Life needs stable currency

Doesn't this post belong in 'Notices and Well Wishes?

There's already a micropayment currency on the net backed by gold.

How about E-Gold? How hard would it be to set up a mechanism to communicate with e-gold via XMLRPC?

It most certainly does.

To notices and well wishes where this will get the attention it deserves!

Ah but you can't make a profit off of an external system.

Lewis

Is this the PONZI thread?

SL only needs stable currency if you are currently making USD or other real world currency from your business in SL. If you aren't, then you pretty much don't care. Given that those of you making actual money are a minority, I'm thinking the majority of us are really kind of happy with the devaluing of the currency.

Soooooo..... does this mean that the Lindens would be paid in A$$?

Why not control The L value if it gets out of hand as opposed to creating a new currency in that case?

Because only Linden Lab could do that.

lol they could control L value if they wanted to and it'd keep L stable i recently posted that having a safety zone to prevent L value from ever reaching to low or to high and frankly peopel got into liquidity etc. Basically if people stop selling mass amounts of L and undercutting each other is prevented at a certain point it discourages people from being that way !

The guy called Argent in the other thread says that you are responsible for dropping the price of the Linden by selling large amounts below current market price to clear quickly. Is he right?

Yes, but what's more probably is that Anshe will notice that if she has 100 000 EUROs of 'real money backing' for the A$'s, 90 000 EUROs of it sit idle, because that much might be always in circulation. So why have 100 000 EUROs backing available, when you can easily get away by just having 10 000 EUROs, and spending the rest 90 000 on a car, house, etc, because there'll be always enough money circulating IN the system, and not coming out, that noone will ever notice? (Except if there's a rush, eh

this stuff all comes down to the SL community. L being unstable is our own fault really. People undercut each other and are dishonest and keep doing it over and over. Basically a few people are screwing up the Value of L and forcing others to in the process. Its up the these "BIG NAME PEOPLE" that are cashing out mass quanities at a low rate to set an example really. You could help stabalize it but you dont because you need to pay your tier. Its these people trying to jsut cover their tier or turn an immediate profit that are the problem. Nothing More Nothing Less

Question: what if he is? Is that a moral failing of Anshe, or a demonstration that the currency is currently overvalued? If it was *worth*, say L$280/US$, it would *sell* for L$280/US$. The fact that someone would need to drop their posted sell rate by +L$5-10 to sell quickly is a clear demonstration that not enough people want to purchase at L$280.

As I've said before, the market is trying to find the fair value of L$. Turns out it's lower than people had thought.

see its lower because of the sellers not the buyers. Lindex gives us the current Lowest value L to buy hence forth we end up having to buy at a less value =/.

If it's true what Argent said about Anshe clearing TWO MILLION Lindens five points down range because it 'needed to get rid quickly' then what is this thread about?

My friend described it as "pi$$ing on your head, telling you it's raining and then selling you an umbrella".

You might want to consider this paragraph from the first post here:

"The market" doesn't find "the fair value" of anything, anyway, that's not what happens. It's got nothing to do with "fair".

A$$he has a lot of umbrellas

I don't necessarily disagree with you, and it's not such a sale that I might find objectionable.

It's the hard-done-by tone of the post that begins this thread that is currently ringing a little flat.

I have to disagree with you there Ricky. The reason why Anshe can sell all the money faster at a higher price, is because at that price, the rest of the sellers stop selling, and wait for the value to rise a little more. I don't think that the volume of purchases increase with the lower rate sales, I think the purchasing stays about the same, and its the selling that slows in compensation. why are people like you always so quick to steer people into believing that no one is driving down the value of the L$, and its going on its own. either you think we are all idiots who can't see what is happening, or you are blind yourself... or your just trying to cover up and smoothe things over for your boss...

No thanks.

Everybody values an asset differently. That's why there is fluctuation in any market. The idea of other people keeping their prices at a given level when the market drops is evidence of that.

Anshe's motivation would be, "I need to get rid of L$2M very quickly, and I don't mind taking a hit on the rate to do it."

Someone else's might be, "I'm parking my sale order at L$260, and I don't care how long it takes to sell."

Different valuations drive the market. That's just the way it is. Now, if there was higher demand at a given price point (which there was -- recall that Anshe's L$2M@300 sold in a couple of hours, with people buying larger-than-usual chunks), the price would rise.

Although some people out there are idiots, I think others are just ill informed or not sufficiently well versed to have an intuitive comprehension of matters like this.

The devaluation of the Linden will continue for so long as Linden holders put their Lindens for sale at ever decreasing values in comparison to the U.S. Dollar. If all of us could exercise some restraint, and patience, and pull our sales of Lindens and not offer them for less than $250, or $280, or whateve the magic number, the price would stabilize. If one of us is going to dump $1M on the market at 300, the market is going to move to meet it. So, if we want to preserve Linden value, then we have to stop selling our Lindens at devalued rates.

A new currency does not equalize the bargaining power between us; right now there is just one bank; one currency, the Linden currency. If a new currency is introduced and allowed by Linden to be bought and sold through the game, i.e., trade lindens for $Anshe or dollars inside, the game, woldn't we all then want to have our own banks, and issue our own currency? Here, I'll do it now, how many Woebegone dollars would you like for our land, and where are you going to trade them?

If an additional currency is created outside the game, then more power to the person that creates it. If it is backed by value, i.e., can be traded for U.S. Dollars, then a currency exchange of sorts has been created; legal or not. Be that as it may, anyone that would sell their lindens to one exchange for less than they could get from another, would be a fool. So, if the $Anshe exchange rate provides more lindens in comparison to the U.S. Dollar, the only currency that makes any difference, then we'll all buy $Anshe.

My observation from anshechung.com is that's just not the case. My observation there, was that I received less Lindens per U.S. $ than I did from Linden selling direct. If $Anshe offered more Lindens per dollar, wouldn't we all buy from her, or anyone that made that exchange. ebay.com is full of lindens at different exchange rates.

The only incentive I would have to take less lindens per dollar, is when I hit my market cap at Linden, and cant' sell anymore lindens b/c of my monthly allotment.

At the end of the day, Anshe cannot reallly create a "new currency", but she can create another market for trade. Anybody can. But what's the point, Anshe, wouldn't u be better off instead just creating your own game?

Seems to me, again, the best way to reach an equilibrium, is not through a new currency in the one economy (after all, Second Life is not a global economy of various countries creating separate GNPs - it is one microeconomy highly susceptible and driven by the valuations of the U.S. Dollar, and the laws of California), but instead, a more efficient and self-driven share of information through free market pressures between us.

One simple way to do this, would be for Linden to allow land owners to put their properties up for bid, rather than a set price, so that resellers, and owners, can market their properties to the second life population in the same way that Linden markets the newly created land.

If along with that process, Linden provided weekly or monthly reports on the land absorption rates amongst users, coupled with the prices of those transfers, (information it already has) we could all better gauge the value of what we're buying and selling rather than leaving the fundamental / initial land price to be set by Linden.

The most recent email I rec'd from Linden is that the average per m2 sale price for land went from something like 5.25 to 5.95 (I'm not accurate on the numbers - but close), in approximatley a year's time. Well, that's curious, b/c the land I've been buying on the "new continent" and seeingn auctioned by Linden on both old and new is going for a heck of a lot more than that. If that were the true price, and the inflationary linden keeps on its path, then all we'll have established is that we have a run away game economy.

In the long run, so what. It's only a game......