L$ as Reserve Currency for Virtual Worlds?

As some of you already know, I have set up a SecondLife Futures Market at http://www.virtualfuturesmarket.com (IM for trial account, plug plug plug)

On this market, you can trade futures contracts on such things as the future value of the L$, whether stipends will be altered, and the population of SecondLife.

My intention there is to set up virtual futures markets for all virtual worlds (nations), including SL, World of Warcraft, EverQuest, Eve, etc.

I would like to use the L$ as a 'reserve currency'. Much in the same way that the USD is considered to be the reserve currency of the world, I was hoping to use the L$ as a reserve currency for virtual worlds.

What are the thoughts of the SL community on this?

My one concern is that much like the USD where the money supply is growing at an inflationary rate and poor fiscal policies are hampering its credibility .. the same is happening to the L$.

Can there be a reserve virtual currency for virtual worlds? Is the L$ the most 'solid' virtual currency of them all?

If you had to chose a different virtual currency which was less inflationary, which would it be?

I like your post very much. Quite a thing to think about. I would like to know what you think about holding an Virutal Expo in Vegas. If I get enough positive feedback, I will look for users to spread the word and help organize the event. Your comments and feedback are welcome.

JP Commerce

WOW player: L$? huh? what is it?
EverQuest player: LL rules L$? NO.
Eve player : If LL shuts down SL, will i lose my Eve money? naa.

Well, the WOW and EQ currencies are sharded, and from what I know, pretty inflationary to boot.

The EVE currency is interesting, though the monetary policy is much more transparent (at least from what I know) for the L$.

Anyone familar with the EVE currency and its inflation rates?

use project entropia currency as reserve if you want. It is at fixed rate i think.

Yeah, I thought about Entropia, my concern is that they have some fairly insidious business practices that make me very nervous.

I'll probably use them as an optional currency so people may create markets if they so wish.

How about a weighted currency index of Virtual Worlds? So, if one drops off the map, you aren't totally hosed and have to delist. I don't know how you'd work out the proportions, unless you wanted to tie them somehow to the ratio per USD or Euro.

Just an idea.

Actually, Linden Labs would love it if the L$ became a
reserve currency. Because that would generate the demand
side of the equation they need.


The biggest problem with Virtual Currencies, Futures, etc
is distribution channel. With Second Life, the distro model
via email or XML is a boon for off site trading platforms.
But with other game currencies, you need live people
working transfer orders.

Solve that problem and you are living on Easy Street.
IGE has the same issues, but they employ a bunch of
workers in China for peanuts..

EVE has a lot of resistence to the idea of currency trading, because of the PvP focus and harsh losses if you die. A friend is involved in a corp that misjumped a freighter on the weekend and lost it to hostile pilots... ~USD$2000 at eBay rates.

Since I stopped a year ago the currency has dropped to 20% of it's former valaue on ebay (roughly USD1/million to USD1/5million) "Inflation" in EVE will get ever worse, since the new ships need more and more materials to build. Titans are worth many thousands of dollars on their own, before equipment is added. The supply of money into the game world keeps increasing too.

The Holy Grail of Virtual Currency trading will be realized
one day. The two big hurdles are legal fights and distribution
across disparate gaming platforms.

You know Bill Gates.... If he gets wind of people making bank
off his company's game network, he'll first sue you until you
say uncle or go bankrupt, then steal your idea and slap the
name Microsoft on it. So it might be wise to register your
company in Nevis as an LLC so Microsoft, Sony, or some
Senator looking out for his campaign war chest, etc can't
touch you.

Keep using L$ .. i really don't see any of the other currencies able or even interested in reserve status.

As long as LL keeps pumping out new Lindens, I wouldn't risk
the L$ as a reserve currency. You need something stable and
non-inflationary...