Linden Lab thinking about printing money and selling it...

If i see any alternative to L$ after this moment, i wont think even a sec to start to use it. But ofcourse LL wont let people to use another currency.

Second Life:Your World. Your Imagination. Not anymore...

Well I'm not actually sure they could stop it, in reality. However, I also wouldn't expect an alternative currency to do very well for a long time, if at all. Getting a ground-swell of support from the consumer would be really tough and, without that, the currency would be pointless.

This is simply not possible because LL cant print US$ to sell.

I agree, it's more psychological thing that anything, but it does seems to work on many levels and for many scenarios. I realised after my post, that the very fact that they would be selling L$ for US$ would rubbish any claims that they hold no value. It could get very messy!



I guess it depends where the money shows when it's moving between residents, and here's a thought: Imagine the amount of money LL could make in interest from simply holding onto the micropayments in world!! They would have a pretty healthy bank balance at all times. That's a bit scary though, too.



I would like to see it happen, but I really doubt it would.

They already stopped it by not implementing land owner change script functions etc. You cant buy any main land parcel using any other currency etc. Ant there are many other things.

Well the two would have to run in parallel for quite some period, as L$ are slowly eeked out of the system. But you're right, it's a major problem: How do people get micropayments in return for their soon to be worthless currency? Other residents of course won't buy them, and LL wouldn't be able to either. It would be a very long and painful process.

This might seem an attractive idea to many residents struggling with a fluctuating L$. And it wouldn't be hard to implement. Just define a day, convert all inworld accounts from L$ to US$ at a rate which is an avarage of the LindeX over some defined time period and from that date on, all dealings are in US$ and cent. (With a cent worth 3L$ these days the granularity is "micro" enough.) All tools for this are already in place. Every residents account has a US$ balance already and there are ways to get US$ in and out. Aside from inworld payment functions



But - and thats a big "but" - it would contradict Philips vision of a virtual country. A souvereign country has its own currency.

So I would not bet large sums on abadoning the L$ in favour of the US$, soon.

Are you blind? who will pay for these all inworld L$-> US$? there is 700million L$ in the game. Cant you see? where is this over 2 million dollar to convert? You have been playin SL for long time for sure. USD is a real currency, you cant tell people: "Hmmm you had 1000000L$ now you have $3000." Where will this $3000 come from. Your way brings only one result: LL will have to pay over 2 million dollar to residents to buy all L$s in the world. omg people, please think a min before posting.

Yes, but would the simplicity of not having to maintain an economy at all mitigate any potential los of income that LL would make from not being able to sell L$.

Oh and, thinking about it, they could also instigate charges for adding or removing funds from your US$ balance which would also mitigate it. Or even, althouhg many would run to the hills screaming, a charge on transactions.

Just because they make money by selling L$ now, doesn't mean that there isn't a way for them to charge differently and make money without the L$.

Ah but L$ have, by LL's own TOS, never had any value. So there's an easy, if not entirely great, way around that

PS. Actually there's another way, during any change-over period - a way of keeping L$ worthwhile during that change. Basically sinks, such as upload fees etc., could still be paid for by L$ meaning that the L$ in the economy could gradually seep away. Or still provide some land sales in L$ for the same effect.

Yes i agree, my post was an answer to Pham's post(conver all L$ to usd) which is not possible.

Shaun I agree....

Folks, do not be baffled by the economic documents on the Linden Forum page.

The ability of any central bank to print currency on demand will further undermine the economy and potentially lead to hyperinflation. Please do a Google on Zimbabwe for a current example (article in today’s Times (UK London)). Linden will print/make Linden Dollars out of thin air to create real US Dollars to maximise their own profits at your expense imho

I proposed one way in which we could resolve the Second Life currency issue by the creation of a resident run UK Ltd Company selling Gold Linden Dollars, backed up with real gold via Gold Bullion Securities (epic code gbs) a UK stock market quoted exchange traded gold fund.

Anshe Chung did I believe put up a similar scheme backed with E-Gold but incurred so much prejudice and pure hatred she withdrew, and I don't blame her.

The time may have come when Second Life residents need to address this issue again, such a scheme will need to be backed by all major player/participants. I might help out if called on, but

I'm sorry, it just wouldn't work. For a zillion reasons.

Yes i agree, but we need new implementations to use a different currency. LL must implement llchangelandowner() functions etc, to be able to sell things using other currincies.
But here is the point. They wont. They will FORCE us to use L$, and they will FORCE us to buy L$s from them(in one way or another).
Secondlife: Your World. Your Imagination.

Actually you also need the basic consumer to support it as well. And that's the sticking point that I see. Why would a consumer choose to use an alternative currency over the L$? Would it offer them easier use? Nope. Would it offer them better value? Don't see why it would as those they're paying it to would still want to maintain a similar level of income.

So, how exactly would you convince the consumer? Without that, a currency would be dead in the water.

I agree this too. I think i agree most of the ideas today but not LL's.

Because it would have real life fungible value based on solid gold vi-a-vis US dollars

Ah right, the average consumer is going to trust you over the people that run the system? I don't think so to be honest.

Something like that would be lost of most anyway - it means very little to them and they wouldn't care. I don't see that as the big thing that would swing the consumer away from the Linden run currency.

No, it was a dumb idea and it drew exactly that response - it's not prejudice or hatred in any way.

No resident run currency scheme will ever succeed because it puts too much control in the hands of one person, with no restraint or accountability.

Just like any other thing - too much power centred around one individual can cause untold damage. It's only a matter of time before one of the big names gets hacked and hundreds or thousands of people are affected.

I invest what I do in SL because it's a game. Anyone who treats SL as anything else is heading for a serious fall sooner or later.

Lewis

It seems as if some people never heard of nor understand Gresham's Law.

But then again, when have policy changes ever had to make sense?

However, I think

really explains it all. Given the proper value of Θ all should be well. They obviously understand this issue well.

Then if you would not trust UK company law, chartered accountants, solid gold, open tranparency, and exchange traded funds, AND if you prefer to trust inflated Linden dollars made at will, and sold for real US dollars going back To Linden Labs, no one can help you.

I'm afraid no one can help you Paul, you're living in a bit of a dream world; you haven't thought it through. You're basing your idea on what you see as trustworthy, rather than what your potential market would.

So buy Linden Dollars, its your money and your potential loss.

No disrespect intended Hiro.

If the land market is any indication as long as people are willing to buy at or above the cost of them producing it then they think the market can absorb it. And since new lindens cost nothing $2000L/$1US here we come.

None taken, and none meant in your direction. Am just offering an opinion