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how close has the L$ to the US$?

Rax Jessop
Registered User
Join date: 24 Dec 2005
Posts: 67
01-08-2006 21:27
What is the closest the linden dollar has gotten to matching (or beating) the US$ and what is the influence for the value of the L$, if the L$ ever had potential for 1 L$ to the US$ would Linden Labs prevent it?
Adam Zaius
Deus
Join date: 9 Jan 2004
Posts: 1,483
01-08-2006 21:29
For a good while it was around 1:160, but there were some pretty nasty situations which lead up to that. (Lots of wholesale extortion by the land barons of the time - since the supply of land at the time was very limited prices were absurd - L$20/m and up. LL then started releasing lots and sunk it to it's present value - now land is an on-demand thing which means those prices are unlikely to happen ever again.)
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Rax Jessop
Registered User
Join date: 24 Dec 2005
Posts: 67
01-08-2006 21:33
i am sorry i am familier with the words, just not when they are strung together, could you dumb it down for me?
Adam Zaius
Deus
Join date: 9 Jan 2004
Posts: 1,483
01-08-2006 21:37
Around ~$6.00 per L$1000 is the answer to your previous question.

The reasons were supply and demand in the land industry; Supply was very limited, so price gouging occured on what was availible; making the average L$ per sqm greater than L$20.00/sqm; this caused lots of people to buy Lindens to purchase land which caused the price to rise with demand to that value.

Now land is cheap, content is the biggest reason people buy L$, but you dont need to buy as much and supply is plentiful so it's unlikely we will see prices like those again.
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Rax Jessop
Registered User
Join date: 24 Dec 2005
Posts: 67
01-08-2006 21:40
but it is all virtual what could cause a land shortage?
Adam Zaius
Deus
Join date: 9 Jan 2004
Posts: 1,483
01-08-2006 22:28
Land is the one part of SL which isnt virtual - it's basically server time. Every sqm gives you rights to 0.00152587890625% of the servers processor usage.

Servers cost realworld money for:
- Electricity and Cooling
- Storage
- Bandwidth
- Hardware
- Maintainence
etc.
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Eggy Lippmann
Wiktator
Join date: 1 May 2003
Posts: 7,939
01-08-2006 22:29
From: Rax Jessop
but it is all virtual what could cause a land shortage?

Each sim is a computer. For LL to add land they can't just magically press a button or two to create it. SL currently runs on 1000+ computers. Land tier is what pays for those computers and their maintenance.