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?