Lindex breaks $200,000 USD traded in a 7 day period

Thursday turned out to be a milestone of sorts. From last Friday to Thursday, over $200,000 USD worth of Lindens were bought on the Lindex.

2006-05-18	$27,888.60
2006-05-17	$25,142.17
2006-05-16	$28,080.63
2006-05-15	$30,141.82
2006-05-14	$26,300.17
2006-05-13	$28,914.32
2006-05-12	$33,743.78
--------------------------
               $200,211.48

That is a lot of money that people are choosing to spend on things within SL. And that figure appears to be rapidly increasing too. For the seven days ending on April 27th, the amount spent on the Lindex in USD was $184,420.07.

That's $200,000 worth of Linden that people used to buy land, skins, clothing, animations, vehicles, games and all the other wonderful things that others create in Second Life. And that's not even counting the dollars spent via other exchanges like IGE and slex. We are participating in a truly remarkable and rapidly expanding economy.

Yes a more stable currency is probably desirable, but perhaps there is a little too much focus being put on the exchange rate and not enough focus on all the economic data which tells us that SL economy is doing great.

Will June be the first month that over $1 million dollars are traded? And will the Lindex have a $2 million dollar month before the end of the year?

Not enough, aprx 3-4 usd per resident in a week. Not enough for me.
Edit: BTW i agree as always SL has a great potential.

I still have 3 days to go for this prediction to come true /130/58/107161/1.html but since the next three days are usually the highest yielding out of the 7 that I track I feel we should maintain the $200,000 threshold. Your 7 day period benifits from the highest yielding day ever of $33,744, my 7 day period wont have a day that high but should still break $200,000.

Did you ever consider this idea in your posting?

SLers took out US$200,211.48

Claiming all is good with $200,211.48 in transactions is one thing.
But working that into a boom economy is something else.

When a tranaction is processed, Buyers with $200,211.48
must give it to the Sellers in exchange for Linden Dollars.
That US$200,211.48 is actually being removed from the economy
because it is ending up in the Sellers Paypal account.
All that is left is a equal value of Linden Dollars within SL.
So for that moment in time, you can claim the $200,211.48
is in the economy. But if that equal amount of linden dollars
which was just purchased went to sell, you would find that
less than $200,211.48 would be obtain because of the decling
valuation of the linden dollar.

To better understand when applied to real world economies....
When the US Dollar falls against the Euro, it means that
people are selling US Dollars and buying Euros. Translation,
there is a flight of equity out of the USD and into the Euro.
Reducing the purchasing power of the USD. Even if there
is 20/Trillion dollars in transactions, it doesn't mean there
is a growth in the US economy of 20/trillion... The direction
of the currency pair puts the economic power in favor of
the one which is appreciating in value. Not the one declining.

This means the US Dollar is growing in favor vs. the Linden
Dollar. There might be thousands or millions in transactions,
but the currency trading direction tells you who is winning
and who is losing.

This is true. We will have to see which direction the trading trend goes over the next month or so. As some of us have said, we need more buyers on the Lindex to help balance out the sell-side pressure. It appears that we may be starting to see the hints of a growing buy-side but only time will tell.

The analysis that Svar provides on his link above is interesting. It is through well analyzed data that market participants can make informed buying or selling decisions. Simply jumping on the bandwagon because everyone else is leads to volatility.

Maybe its just me, but sales are way up and maybe finally some of these new players are shopping too.

cool, keiki, lindex volume is a key indicator of the SL economy. though, if LL starts trading on it, we might lose that..

Believe me, I'm totally against LL selling Lindens on the Lindex (or via a similar mechanism). I think it would be a very bad move on their part and would fundamentally damage the credibility of the SL economy.

I think you should hear or read Phillip's comments about land and the economy and his views and ideas of growth from the Town Hall meeting podcast the other day by Johnny Ming. I think you will find it very enlightening.

Keiki,

I calculated the purchase of Lindens on the LindeX for 5/19/2006 to be $32,533 based on my reported average rate of exchange for 5/19/2006 of L$318.2864 / 1 which was reported in another thread just before midnight. The average rate in the historical data is borked again.

Welcome to the tourist trade. If you're a gift shop owner in a country with a very strong currency... you can expect fewer tourists choosing your particularly more expensive destination that season as a result... and a steep fall-off in sales.

However, if your country's currency "is going down the toilet" you suddenly become a much more popular destination spot for vacationers on a budget, you can't buy stock fast enough keep the shelves fast enough! Oh wait, it doesn't COST anything to re-stock shelves in SecondLife.