Why does LL have to be deceptive?

Anyone just checking out Second Life for the first time would see that chart and go -- WOW! Look at the value of the Linden dollar! I'm signing up so I can make some $$$$!

But what people don't realize, even some inside the game, is that LL's charts are essentially upside down, because LL opted to go with a chart that shows how many L$ you get for a buck, rather than the other way around, like the rest of the freaking world.

It goes against standard financial charting practices. I'm not going to turn on CNN one morning and see a chart like that above and think, "Oh, man, the stock market is going down." Why? Because standard practices is to show charts that are easy to interpret -- i.e., trends going upwards = good, trends going downward = bad.

But Linden Labs has chosen a deceptive means to portray this information. Oh, they say they aren't being deceptive, but they know exactly what they want people unfamiliar with SL and the Lindex to think.

It's good if you want L$ for US$. Not everyone wants to cash out.

Buyers will most likely always exceed the number of sellers. The more L$ for the $, the more people benefit.

The only people complaining about the 'falling value' of the L$ are the people who make a serious income out of it. I can't even IMAGINE having 2 million L$ in my account, let alone disposing of it because it's not necessary.

I'd be happy with L$20,000. Or L$10,000 for that matter.

Lewis

That isn't really true. Look at me, for example. Right now, Marlin Engineering (and thus Jon Marlin) has a premium account. I pay LL the $9.95 per month, plus an additional $25/month tier for my land in Horseshoe (Marlin HQ).

Although I don't complain about the value of the L$ versus the USD, I certainly keep an eye on it, and would prefer that it was closer to L$250 than the L$295 it is currently at. Right now I've got a bit under L$11,000 on sale in Lindex, to pay my account/tier fee for April (which is coming up in a few days). The L$ I have in Lindex come entirely from sales of my vehicles.

As I said elsewhere, I'm a professional software developer, and I make a decent amount of money in RL. However, I also have a wife and three kids, and if I had to drop $35 per month on SL every month out of my pocket, I would probably stop playing, or at least close Marlin Engineering. One of the things about SL that is really appealing to me is that it is self-sustaining. I have spent a grand total of $20 on it so far, including my initial sign up fee (made before basic accounts were free), and the $10 it cost me to upgrade to premium about a year ago.

You're making a mistake in assuming the majority of people in SL are in it for the reasons you are. There are as many reasons as there are people. I'm perfectly happy that some people are able to make a decent living in SL. I'm also perfectly happy that there are a large number of people who spend a lot of money buying stuff that content creators (like me) sell.

- Jon

Yes it's a wonderful thing. LL gets paid, you can earn enough in-world to meet your expenses, everyone's a winner!

Since Developer Incentives begun their phase out, the Shelter has had to convert a portion of its donation funds each month to cover our tier.

While I don't watch the exchange rate like a hawk, it does have a direct impact on us.

For example, our tier is US$75.00/month:

If the Linden is trading at 250, that means we need L$19,500 to cover our tier.

If the Linden is trading at 300, that means we need L$23,500 to cover our tier.

That difference of L$4000 may not seem like a lot - but for us, it goes a long way.

Shush Jon! Don't you understand? If Lewis can't IMAGINE it, then it cannot be so!

All that said, the chart is not "deceptive"... it's simply made to display information for a different target audience, i.e. "people who wish to buy L$".

It's not deceptive because "GOM didn't do it that way!".

Not at all, I can quite easily see how people can make $35 or more a month in game by having a business, and the only reason I don't is because I am unable to devote the time required to develop it and promote it due to several important - and time consuming - real life projects.

There is nothing to really stop any of us becoming the next Anshe Chung or any other 'big name player' in game. The only difference is our desire.

Lewis

Deceptive? No. It's good for LL and it's new investor for it to go that way. And anything that is good for them is probably bad for you.

How is that deceptive? I would rather see the L$ at 300 or the bottom (which I believe will be 350 by Christmas at the latest). Since I may have to buy Lindens. I haven't bought Lindens in well over a year, but if I do, a higher exchange rate is benefical to myself.



Also, the $L will never be at 250/1 again, so give it up. Why? The reason is simple, the Economy is maturing and so the worth of the $L is going to drop as more people are in the world, people have less need to pruchase L$. The only way the L$ will stay at a lower exchagne rate is if massive amounts of people are added to the world on a regular basis and they spend a lot of L$. Right now it is a buyers, not a sellers market. With so many people desperate to sell L$ since ther are running SL Businesses, they have to sell to coer tier, and real world bills. No one HAS to buy L$ (well maybe to cover some rental fees). SL can never work as a real economy because there are no needs in SL.

Personally, I think its brilliant.

Well it's certainly a buyer's market, so why not?

I truly hope this chart is not result of "brilliance" by Lindens, because this "brilliance" would be the brilliance of the crook and come paired with deception and dishonesty. One could then easily ask if Linden Lab expect the devaluation of L$ as early as in October while still claiming they would adjust money supply/sink to keep L$ stable.

Since, personally, I don't think anybody at Linden Lab is up to this kinda screw off people it more look like some artistic choice of the web designer to me. Trusting in Philip's honesty I also think it is just question of time the L$ return back to the target rate that was announced in town halls. I think problem is that SL economy is such big ship to stir, that sometimes the reaction time to economy changes can be little bit slow.

LoL.

Where can I find these standards. My employer is gonna go berzerk when they find out I haven't been employing "standard financial charting practices".

Assuming a few people are selling most of the L$ and many many more people are buying small quantities of L$ for their own use...

Wouldn't it make sense to show the chart in terms to clearly display the advantage from the perspective of the majority of the people looking at it?

http://www.metaquotes.net/forex/eurusd
http://finance.yahoo.com/q/bc?s=USDEUR=X&t=1y

Please tell me which of those is wrong as according to your view at least one has to be. Off course now may be the time to realise it depends on the point of view.

You should realise there's always 2 parties involved.
A) Those who buy L$ -> They are happy they get more L$ per US$
B) Those who sell L$ -> They are happy when they get more US$ per L$

The standard pretty much is that you're showing how the currency you hold compares to the foreign currency. It's fair to say LL figured that there would be more buyers than sellers for L$. Hence the chart reflects the point of view of the majority of the Lindex users.

The chart is a pretty standard foreign exchange style display. There is nothing deceptive about it.

https://fxtrade.oanda.com/

Notice the default chart - as it goes up USD is cheaper versus EUR, just like SLL versus USD.

I don't at all see how it's deceptive. There are nearly 170,000 users (allegedly) and yet, there are less than 1000 people selling money on the Lindex. Hmmm more people buying than selling...to me that indicates a buyers market, so showing that someone buying gets more bang for their buck makes sense.
Plus, there is a legend. Someone not being able to read a graph makes them stupid, not LL deceptive.

-Sun
(anyone got a sound file of Carlos Mencia saying Deedaaadee? It sure would come in handy sometimes in game.)

OHhh that Phillip.. He is a slick one...

Bunch of Used Car Salesman working at LL...

Turn it over

Oanda is GOD@!!@!!! They have the best pip spreads...

I'm surprised to hear myself say this, but when LindeX opened, L$/US$ made a lot more sense to my little brain than US$/400L$ likely because of the division by 400 one always had to do when trying to calculate valuations.

I think it possible that this "flip" was done not in interest of misrepresentation but more as an acknowledgment of thinking in micropayments. I could easily be wrong...