Comments on: So you are pondering a career as a Linden currency speculator? http://alphavilleherald.com/2006/10/so_you_are_pond.html Always Fairly Unbalanced Tue, 04 Oct 2016 13:18:56 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Dow Jonas http://alphavilleherald.com/2006/10/so_you_are_pond.html/comment-page-1#comment-41669 Dow Jonas Wed, 25 Oct 2006 16:03:10 +0000 http://localhost/wp_2/?p=1853#comment-41669 *Lindens run out of hardware and simply can't keep creating the land to meet the demand. *Lindens run out of hardware and simply can’t keep creating the land to meet the demand.

]]> By: Dow Jonas http://alphavilleherald.com/2006/10/so_you_are_pond.html/comment-page-1#comment-41668 Dow Jonas Wed, 25 Oct 2006 16:02:21 +0000 http://localhost/wp_2/?p=1853#comment-41668 If you read my piece below, "The Dog That Didn't Bark" you'd see that the worst event in SL history -- the 9/06/06 hack reported 9/09/06 -- barely shook the LinDeX and didn't at all cause it to fall, contrary to RL experience. It dipped but didn't suffer because even more people had to log on with new alts and then rush to buy them outfits and homes because they couldn't log on to their old accounts with the huge queue to the telephone lines. That evidently kept it steady -- a synthetic event in a synthetic world. Other events that affect the LindEx: 1) closures of the Land Store or slacking of the auctions -- sometimes the Lindens simply run out of 2) bluffing with big packages of sells numbering in the milions that scare people into reducing their sell orders which are then 3) Anshe Chung's tier due dates (ouch) 4) Yes, abrupt spike in population or abrupt decline due to poor service 5) Holidays -- some work to sink the LindEx because people go outdoors 6) It's not really boom or bust, but more like controlled situations: "the Lindens decide to finish off the east coast and throw out lots of sims and glut the market" or "Anshe decides to corner the prime waterfront market in order to drive up prices so high people will move to her new batch of islands". You may recall that notorious boom and bust on snow that caused a panic and drove prices up so high that the anti-land-baron lobby caused the Lindens to push out bunches more of sims to compensate. The Lindens artificially keep land at $4-5/meter, and it's hard to conceive of an authentic land market under these circumstances. That means the Linden value is also artificially controlled. People played the LindEx quite handily in recent months and fortunes were made, but then the Lindens intervened by putting in something they call "circuit breakers" to slow overheated sales. And of course they sell money now they themselve print now, something they said they'd never do. That means they can keep it at any rate they like. If you read my piece below, “The Dog That Didn’t Bark” you’d see that the worst event in SL history — the 9/06/06 hack reported 9/09/06 — barely shook the LinDeX and didn’t at all cause it to fall, contrary to RL experience. It dipped but didn’t suffer because even more people had to log on with new alts and then rush to buy them outfits and homes because they couldn’t log on to their old accounts with the huge queue to the telephone lines. That evidently kept it steady — a synthetic event in a synthetic world.

Other events that affect the LindEx:

1) closures of the Land Store or slacking of the auctions — sometimes the Lindens simply run out of

2) bluffing with big packages of sells numbering in the milions that scare people into reducing their sell orders which are then

3) Anshe Chung’s tier due dates (ouch)

4) Yes, abrupt spike in population or abrupt decline due to poor service

5) Holidays — some work to sink the LindEx because people go outdoors

6) It’s not really boom or bust, but more like controlled situations: “the Lindens decide to finish off the east coast and throw out lots of sims and glut the market” or “Anshe decides to corner the prime waterfront market in order to drive up prices so high people will move to her new batch of islands”.

You may recall that notorious boom and bust on snow that caused a panic and drove prices up so high that the anti-land-baron lobby caused the Lindens to push out bunches more of sims to compensate.

The Lindens artificially keep land at $4-5/meter, and it’s hard to conceive of an authentic land market under these circumstances. That means the Linden value is also artificially controlled.

People played the LindEx quite handily in recent months and fortunes were made, but then the Lindens intervened by putting in something they call “circuit breakers” to slow overheated sales.

And of course they sell money now they themselve print now, something they said they’d never do. That means they can keep it at any rate they like.

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