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Linden Dollar Moving Lower Against |
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Michael Seraph
Second Life Resident
Join date: 9 Nov 2004
Posts: 849
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02-21-2006 23:10
Great idea... As soon as LL tells me how many Linden Dollars are in circulation. Until then, forget it. As far as I know, LL has printed 2/billion Linden Dollars and will print another billion by year end.. OMFG! ReserveBank is admitting he doesn't have the necessary information to make economic claims???? Is the sky falling? |
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-22-2006 05:25
To date 73 Residents have followed the instructions on this page and had their LindeX tier increased: https://secondlife.com/currency/describe-tiers.php If the default Main Grid limit is a problem for you, please submit a tier increase request. Cheers, Lawrence If you can easily increase your tier, then why have a tier at all? Why must a trader be judged on LindeX usage and your payment history to be deemed tier-upgradable? The reason I make this case is because of the following scenerio. Crash Day: -------------- I have L$1,000,000 Linden Dollars stockpiled in my account and I never traded much on a daily basis, so I never needed a tier increase. Then without warning something happen in the economy (LL Policy Change, SL Competion, San Fran Earthquake, etc) and I felt that my L$ was in danger of losing value very quickly. As such, I decided to sell all L$1,000,000 on the market. But since L$1,000,000 equals US$3,600, I'm screwed. I would have to submit a request for a tierup before I could sell, but then the market could have fallen and I will have lost hundreds waiting on LL to act. The same holds true if the market is moving upwards. Linden Dollars might begin moving higher with a fearish run, and I'm unable to buy an unlimited amount without pre-approval. These are just more Socialist Barriers by LL to control the economy by setting up buying and selling restrictions to curb the effects of what would stem from bad economic policy. Fix the policy, remove the restrictions (aka: Pre Approvals by The Ministry of the Treasury). If you are worried about Fraud, then buy insurance from Lloyds of London. They insure everything. Here is a blurb from an article on Bankrate.com: "Cutty Sark, the Scotch whisky company, offered a reward of a million British pounds -- about $1.55 million -- to anyone who could capture Nessie, the Loch Ness monster, alive," says Patrick-Roberts, who lives in Scotland. "We at Lloyd's took on the policy to cover Cutty's liability if they have to pay up." It isn't their most bizarre risk, though. The company covers 100,000 Americans against kidnap by space aliens, with double payment if the kidnap victim is impregnated by the extraterrestrials. Wine tasters insure their palates and 20 members of a "Whiskers' Club" once insured their beards against fire or theft. Source: http://www.bankrate.com/brm/news/insurance/old-lloyds1.asp I think my calling has arrived. Maybe its time to create an offsite currency trading market which has ZERO fees and ZERO restrictions. A true Forex Market for L$ in which I as the Forex Market acts as a Market-Maker. Offsetting the Bid/Ask price by maybe L$1/Dollar and making my profit on volume. That would be a very trader friendly marketplace and allow the TRUE price of the L$ to appear. And not burden buyers or sellers with nickel and dime fees that eat into their hard earned profits. Its a Win-Win for everybody except for LindenX. _____________________
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Jonas Pierterson
Dark Harlequin
Join date: 27 Dec 2005
Posts: 3,660
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02-22-2006 05:27
Go for it then Reserve, and quit trying your crackpot ideas on us here..
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Keiki Lemieux
I make HUDDLES
Join date: 8 Jul 2005
Posts: 1,490
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02-22-2006 05:41
pie
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imakehuddles.com/wordpress/
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Jonas Pierterson
Dark Harlequin
Join date: 27 Dec 2005
Posts: 3,660
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02-22-2006 05:50
Sweet Potato Pie
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Ranma Tardis
沖縄弛緩の明確で青い水
Join date: 8 Nov 2005
Posts: 1,415
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02-22-2006 06:31
If you can easily increase your tier, then why have a tier at all? Why must a trader be judged on LindeX usage and your payment history to be deemed tier-upgradable? The reason I make this case is because of the following scenerio. Crash Day: -------------- I have L$1,000,000 Linden Dollars stockpiled in my account and I never traded much on a daily basis, so I never needed a tier increase. Then without warning something happen in the economy (LL Policy Change, SL Competion, San Fran Earthquake, etc) and I felt that my L$ was in danger of losing value very quickly. As such, I decided to sell all L$1,000,000 on the market. But since L$1,000,000 equals US$3,600, I'm screwed. I would have to submit a request for a tierup before I could sell, but then the market could have fallen and I will have lost hundreds waiting on LL to act. The same holds true if the market is moving upwards. Linden Dollars might begin moving higher with a fearish run, and I'm unable to buy an unlimited amount without pre-approval. These are just more Socialist Barriers by LL to control the economy by setting up buying and selling restrictions to curb the effects of what would stem from bad economic policy. Fix the policy, remove the restrictions (aka: Pre Approvals by The Ministry of the Treasury). If you are worried about Fraud, then buy insurance from Lloyds of London. They insure everything. Here is a blurb from an article on Bankrate.com: "Cutty Sark, the Scotch whisky company, offered a reward of a million British pounds -- about $1.55 million -- to anyone who could capture Nessie, the Loch Ness monster, alive," says Patrick-Roberts, who lives in Scotland. "We at Lloyd's took on the policy to cover Cutty's liability if they have to pay up." It isn't their most bizarre risk, though. The company covers 100,000 Americans against kidnap by space aliens, with double payment if the kidnap victim is impregnated by the extraterrestrials. Wine tasters insure their palates and 20 members of a "Whiskers' Club" once insured their beards against fire or theft. Source: http://www.bankrate.com/brm/news/insurance/old-lloyds1.asp I think my calling has arrived. Maybe its time to create an offsite currency trading market which has ZERO fees and ZERO restrictions. A true Forex Market for L$ in which I as the Forex Market acts as a Market-Maker. Offsetting the Bid/Ask price by maybe L$1/Dollar and making my profit on volume. That would be a very trader friendly marketplace and allow the TRUE price of the L$ to appear. And not burden buyers or sellers with nickel and dime fees that eat into their hard earned profits. Its a Win-Win for everybody except for LindenX. You understand there are restrictions on the trading of RL curency? Real life countries do this to keep their money supply stable and to avoid fraud. About your other idea, I am not sure if it is legal. My first impuse is to say NO. |
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Reitsuki Kojima
Witchhunter
Join date: 27 Jan 2004
Posts: 5,328
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02-22-2006 07:35
About your other idea, I am not sure if it is legal. My first impuse is to say NO. It's legal, but not going to pay for itself unless the creator abuses it. _____________________
I am myself indifferent honest; but yet I could accuse me of such things that it were better my mother had not borne me: I am very proud, revengeful, ambitious, with more offenses at my beck than I have thoughts to put them in, imagination to give them shape, or time to act them in. What should such fellows as I do crawling between earth and heaven? We are arrant knaves, all; believe none of us.
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-22-2006 07:45
You understand there are restrictions on the trading of RL curency? Real life countries do this to keep their money supply stable and to avoid fraud. About your other idea, I am not sure if it is legal. My first impuse is to say NO. Countries like China have restrictions on Floating their Currency. Mainly because there isn't enough Yuan in the world outside of China to trade it freely and the Bank of China won't trade with other Central Banks. But the vast majority of countries have a free floating curreny that does not restrict the amount of dollars you wish to purchase. Unlike LL which restricts (without acceptable approval) unlimited currency trading between SL Citizens.. _____________________
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Lawrence Linden
Linden Lab Developer
Join date: 25 Jun 2005
Posts: 235
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02-22-2006 07:48
If you can easily increase your tier, then why have a tier at all? Why must a trader be judged on LindeX usage and your payment history to be deemed tier-upgradable? It's all about managing the fraud risk. As it stands now the LindeX fees about cover our merchant fees and the fraud that occurs. Sometimes LindeX is in the black, sometimes it's in the red. If we removed the limits altogether we would probably have to increase the fees at least five-fold. The US Treasury recommends what we do in the Foreign Exchange Comptroller's Handbook: Aggregate trading and placement limits must be established for each customer,based primarily on the amount of business considered to be appropriate to its creditworthiness and, secondly, on the volume of its foreign currency needs. Inaddition, absolute sub-limits should be placed upon the amount of that customer’s business that may be settled on one day. They even specifically recommend the two criteria that we use in evaluating limit increase requests. Google can help you find plenty of other information on forex "trading limits", they're really quite common and not just some whacky US Treasury concept. If you are worried about Fraud, then buy insurance from Lloyds of London. They insure everything. ... I think my calling has arrived. Maybe its time to create an offsite currency trading market which has ZERO fees and ZERO restrictions. A true Forex Market for L$ in which I as the Forex Market acts as a Market-Maker. Offsetting the Bid/Ask price by maybe L$1/Dollar and making my profit on volume. That would be a very trader friendly marketplace and allow the TRUE price of the L$ to appear. And not burden buyers or sellers with nickel and dime fees that eat into their hard earned profits. Its a Win-Win for everybody except for LindenX. That insurance would cost substantially more than our average amount of monthly fraud, which would mean we'd need to raise our fees to cover our costs. If you can offer such a marketplace with less friction and a more competitive fee structure, please do, it will benefit us all. Cheers, Lawrence |
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-22-2006 08:18
It's all about managing the fraud risk. As it stands now the LindeX fees about cover our merchant fees and the fraud that occurs. Sometimes LindeX is in the black, sometimes it's in the red. If we removed the limits altogether we would probably have to increase the fees at least five-fold. The US Treasury recommends what we do in the Foreign Exchange Comptroller's Handbook: They even specifically recommend the two criteria that we use in evaluating limit increase requests. Google can help you find plenty of other information on forex "trading limits", they're really quite common and not just some whacky US Treasury concept. Trading Limits in the Real World Forex Market is based around the ability of the individual to financially handle their account. More so in the realm of Shorting Currencies. All Forex sites require a deposit before allowing users to trade. As such, a trading limit is imposed to insure the Forex Broker doesn't process a Short which the Client account cannot cover. They also restrict margin accounts to usually 20:1 or 50:1 on the amount of currency you can buy on margin. And since LL doesn't offer margin accounts, there is nothing to restrict since cash has to be deposited to buy L$, dollar for dollar. This does not reflect the trading limits imposed by LL. Which are imposed to curtail any market swings in the current price. If somebody wants to buy US$10,000 worth of L$ and they already have an account with all the POC information, the transaction should be processed. Or better yet, force traders who wish to transact more than XX amount to have the cash deposited with LL so that its liquid and ready to move on the market at a moment's notice. Thus giving the users of LindenX the ability to Buy L$3/miilion at 12:01p and sell L$3/million at 12:05p. That insurance would cost substantially more than our average amount of monthly fraud, which would mean we'd need to raise our fees to cover our costs. If you can offer such a marketplace with less friction and a more competitive fee structure, please do, it will benefit us all. Cheers, Lawrence The only types of Fraud that LL most likely deals with is: a) Credit Card Chargebacks b) Hacked Accounts and Stolen L$ The solution to (a) is to only accept e-Gold which cannot be charged back. Although eGold isn't widely used, so economic incentives should be given for traders who use eGold ( http:www.e-gold.com ). But still the majority of folks won't use it or find it too complex. As such, charge those folks your chargeback-protection fees. b) As for hacked accounts, that is the fault of LL Security. Something which shouldn't be placed onto L$ traders because LL Security has holes. If Online Banks can protect important accounts from fraud, LL should be able to do the same. If I misseed the most common fraud risks to LindenX, let me know so I can comment on them.. But I would assume that Credit Card Chargebacks is your greatest risk. _____________________
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Iron Perth
Registered User
Join date: 9 Mar 2005
Posts: 802
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02-22-2006 08:26
a) I believe that e-gold is being heavily investigated by various federal agencies. One (especially a virtual currency owner) should keep distance from that sort of thing or you're probably going to end up getting investigated as well.
b) They have 100% security against hacked accounts, that's why they have tiers. Online banks are just as paranoid. One thing would be establishing more objective, clear guidelines as to what lets you into another tier. |
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Iron Perth
Registered User
Join date: 9 Mar 2005
Posts: 802
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02-22-2006 08:37
a) I believe that e-gold is being heavily investigated by various federal agencies. One (especially a virtual currency owner) should keep distance from that sort of thing or you're probably going to end up getting investigated as well.
b) They have 100% security against hacked accounts, that's why they have tiers. Online banks are just as paranoid. One thing that would help would be to establish more objective, clear guidelines as to what lets you into another tier. |
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-22-2006 08:43
One thing that would help would be to establish more objective, clear guidelines as to what lets you into another tier. Or a click button to upgrade and the upgrade is done. _____________________
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-22-2006 08:52
a) I believe that e-gold is being heavily investigated by various federal agencies. One (especially a virtual currency owner) should keep distance from that sort of thing or you're probably going to end up getting investigated as well. . The Feds are worried that eGold is being used by Terrorist and Drug Dealers. But if they need info, they can execute a search warrant like any bank account.. Nobody has Knocked on My door: http://2327104.e-gold.com/ Good Article: Gold Rush Online payment systems like e-gold Ltd. are becoming the currency of choice for cybercrooks Crime courses through the internet in ever-expanding variety. Hackers brazenly hawk stolen bank and credit-card information. Pornographers peddle pictures of little boys and girls. Money launderers make illicit cash disappear in a maze of online accounts. Diverse as they are, many of these cybercriminals have something important in common: e-gold Ltd. E-gold is a "digital currency." Opening an account at www.e-gold.com takes only a few clicks of a mouse. Customers can use a false name if they like because no one checks. With a credit card or wire transfer, a user buys units of e-gold. Those units can then be transferred with a few more clicks to anyone else with an e-gold account. For the recipient, cashing out -- changing e-gold back to regular money -- is just as convenient and often just as anonymous. Source: http://www.businessweek.com/print/magazine/content/06_02/b3966094.htm?chan=gl _____________________
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Gabe Lippmann
"Phone's ringing, Dude."
Join date: 14 Jun 2004
Posts: 4,219
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02-22-2006 09:33
Go ahead and invest in an unregulated "financial institution" held under an offshore holding company with a staff of 15 and no idea why they might want to know who is dealing digital currency through their service.
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Exchange Street
Registered User
Join date: 6 Sep 2004
Posts: 69
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02-22-2006 09:36
http://www.slexchange.com/modules.php?name=Currency
No trading limits, and currently a bit out of balance with LindeX. _____________________
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-22-2006 09:42
http://www.slexchange.com/modules.php?name=Currency No trading limits, and currently a bit out of balance with LindeX. Perfect.... No Rules, Just Right... _____________________
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-22-2006 09:45
Go ahead and invest in an unregulated "financial institution" held under an offshore holding company with a staff of 15 and no idea why they might want to know who is dealing digital currency through their service. "unregulated financial institution" as you mention is a bit misleading. Its to assume that anybody handling money needs to have US Gov't regulation. Does that mean a Bank Account in Nevis is unacceptable? http://www.cia.gov/cia/publications/factbook/geos/sc.html _____________________
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Gabe Lippmann
"Phone's ringing, Dude."
Join date: 14 Jun 2004
Posts: 4,219
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02-22-2006 10:00
"unregulated financial institution" as you mention is a bit misleading. Its to assume that anybody handling money needs to have US Gov't regulation. Does that mean a Bank Account in Nevis is unacceptable? It's not misleading at all. If people want to invest, they should do so with full understanding of the risk. This is a rare thing these days since people want to avoid paying professionals to do it for them. There is very little auditing being done of the reserves. The business chooses to engage with less than savory characters under the catch-all "it's not my job". Certainly a great start and not a petri dish full of future slime at all. The CIA factbook link is nice, but since I am not traveling to Nevis in the near future, it is not necessary. _____________________
go to Nocturnal Threads
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Surreal Farber
Cat Herder
Join date: 5 Feb 2004
Posts: 2,059
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02-22-2006 10:06
1 Quatar Riyal will currently buy you $L 75 - a marked drop off from the target
$QAR = $L 110. I guess we won't be getting many residents from Quatar. Wonder how many $L you get for a kilo of dates. _____________________
Surreal
Phobos 3d Design - putting the hot in psychotic since 2004 Come see our whole line of clothing, animations and accessories in Chaos (37, 198, 43) |
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eltee Statosky
Luskie
Join date: 23 Sep 2003
Posts: 1,258
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02-22-2006 10:34
http://www.slexchange.com/modules.php?name=Currency No trading limits, and currently a bit out of balance with LindeX. No real meaning either. Who would want to sell their $L for 10% less? unless thats brought closer inline with the lindex it'll just be gutted and left empty _____________________
wash, rinse, repeat
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Keiki Lemieux
I make HUDDLES
Join date: 8 Jul 2005
Posts: 1,490
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02-22-2006 10:39
Perfect.... No Rules, Just Right... Yeah, no fees either! Except for the built in spread on top of a 2.5% paypal/credit card fee for depositing money into your slexchange account. http://www.slexchange.com/modules.php?name=Content&pa=showpage&pid=4 ----- P.S. This is not a dig at slexchange.com. I love that site and think it's great that they are running an exchange. I'm just pointing out that ReserveBank is dreaming if he thinks there is some way to run an exchange without charging fees of some sort. _____________________
imakehuddles.com/wordpress/
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-22-2006 10:50
1 Quatar Riyal will currently buy you $L 75 - a marked drop off from the target $QAR = $L 110. I guess we won't be getting many residents from Quatar. Wonder how many $L you get for a kilo of dates. Hahhaha... How much is a Kilo from Columbia in L$ Dollars? _____________________
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-22-2006 10:55
Yeah, no fees either! Except for the built in spread on top of a 2.5% paypal/credit card fee for depositing money into your slexchange account. http://www.slexchange.com/modules.php?name=Content&pa=showpage&pid=4 ----- P.S. This is not a dig at slexchange.com. I love that site and think it's great that they are running an exchange. I'm just pointing out that ReserveBank is dreaming if he thinks there is some way to run an exchange without charging fees of some sort. THe Spread is a result of the low volume, not a flaw in SLEX concept. Unless they are padding the spread for their own gains. If so, I think they padded themselves out of the market. As for fees, you can get rid of them, but everything depends on how you collect and transfer money. If you accept Paypal or Credit Cards, you have to pay a fee to a 3rd party. As such, you have to pass it onto the user (ie: The Trader). To get around that, you accept other forms of payment which are fee less. There are lots of Digital Currencies to choose from... To make money processing transactions in the first place, you can either charge a per-transaction fee or you can become a market maker and control the bid/ask spread and make a profit off the difference. The smaller the spread, the more inviting your market floor will become. _____________________
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Iron Perth
Registered User
Join date: 9 Mar 2005
Posts: 802
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02-22-2006 11:02
There is a 60 pip spread (6 L$) which Apotheus has hardwired into the market for revenue on all transactions.
This is roughly a 2% to 2.5% commission that is shared between the buyer/sellers. On Lindex, the seller pays the 3.5% commission, though the effect on the market is similar if you're involved in both sides. If you're buying on the Lindex, and selling elsewhere, you can use this to your advantage, however you'll notice that nobody is selling for less than the current price on Lindex and I do not forsee this happening anytime soon. |