Is the Linden Dollar a Ticking Time Bomb?

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Pixels and Policy reader and virtual world enthusiast Doubledown Tandino left a thought-provoking comment on our article about the lack of competition in the virtual world. Tandino made the argument that attaching a dollar value to Linden Dollars is really a work of fiction:

Linden Lab…says [the exchange rate] is $260L to
$1 USD every day…so it is. and the world believes it. It is fortunate
that the bubble hasn't burst on the fictitious economy.


It's an intriguing argument, so Pixels and Policy decided to take a look at the confidence behind the currency. Is Second Life's economy just irrational exuberance?

Continue reading Is the Linden Dollar a Ticking Time Bomb?

Misguided Headline of the Week: Second Life Economy “Too Big to Fail?”

Gink4_wideweb__470x341,0 Miranda Marquit of the science and tech website PhysOrg asks us whether virtual world economies like Second Life are "too big to fail." Pixels and Policy wonders if the patchwork economy of Second Life might be too ethereal to expand.

Enthralled by Ms. Marquit's seeming comparison of Second Life to the major banks and lenders bailed out by the United States last year, we did a bit of investigative work on just how solid the economy of second life truly is.

Turns out the virtual grass isn't as green as imagined.

Continue reading Misguided Headline of the Week: Second Life Economy “Too Big to Fail?”