>A) Its controlling entity says it isn’t one
B) There *is* a controlling entity, who has unfettered access into the “wallets” of its users and retains the right to inflate/deflate/disseminate/reappropriate the “currency” at its whim.
C) By and large, people do not use it for anything outside of the game.

>The only way you could regard L$ as a currency is if you were so swept up in the roleplaying that you lost perspective on the situation as a whole. — Petey<

There’s quite a debate over this. I have never regarded L$ as “currency” in the legal sense; to me it was monopoly money. However, it IS a tradeable good, which means it has RL value. As such, while it might not be considered “currency” per se… but it is an asset with real value. So while it might not catch IRS scrutiny as money earned, it might very well catch their attention as a capital gain.

If that happens… they could consider such retroactively– upon which LL and associates will have major coronaries.

Which is the dot-com/dot-bomb sequence that will happen with Second Life if the status quo remains.

Prok is right, guys. Yeah, yeah, all currency is just what we agree to accord value to. If I want to pay you in Monopoly money and you agree to take it that’s fine, ok, thanks for getting the fifth grade revelation of subjective reality a little late.

The Linden Dollar isn’t a currency for a few reasons:

A) Its controlling entity says it isn’t one
B) There *is* a controlling entity, who has unfettered access into the “wallets” of its users and retains the right to inflate/deflate/disseminate/reappropriate the “currency” at its whim.
C) By and large, people do not use it for anything outside of the game.

The only way you could regard L$ as a currency is if you were so swept up in the roleplaying that you lost perspective on the situation as a whole.

No currency is accepted everywhere. The Zimbabwean dollar (if there is such a thing) may not be the most stable currency in the world, yet no economist would deny that it is still a currency. I don’t see why an economist would deny that the Linden dollar is a currency, even if the central bank is in effect Linden Lab rather than a third world government.

…Do I use Ginko? All the time. They’ve been great. Better customer service than LL, and I’ve made a lot on excellent interest rates.

Federal Reserve Notes are almost entirely backed by other debts: US T-Bills, i.e. US Govt debt. The Fed holds a small amount of gold certificates and gold boullion, which were turned over to it in 1933 by FDR when he declared a state of national emergency (i.e. national bankruptcy). While the gold bugs think that backing debt with debt is insane, it all depends on whose debt you are talking about, and whether those person have sufficient assets and cash flow to pay the debts. Currently 40% of the land in the US is government owned (local, state, and federal), and is valued somewhere between $22-30 trillion US. This is obviously sufficient to collateralize current US debts, and much of its future liabilities (when those liabilities come due, that land will likely be worth much more, so its no big deal).

So you can say that, at least indirectly, the Federal Reserve Note is backed by the national parks, military bases, and other federal facilities, just as your mortgage on your house is backed by the value of your home.

So, if Phillip thinks that zero loans is quantitatively equal to “microloans”, he’s spinning Ginko like a White House press secretary.

For the other consumers in SL interested in the issue, I can share my own experiences with different SL banks:

My Second Bank (formerly Meta Bank): financed my first land purchase of a half sim, pretty transparent about who the owners are, actually enjoy talking to you IRL so the can ensure the people they lend to are legit. Later financed part of my estate expansion (for disclosures sake), and are always lending money to people for land purchases.

Ginko: as stated previously, not interested in investing in SL people or ventures, suspect they use their depositors money for their own real estate development. If so, and depositors are happy, then so be it, but they shouldn’t call themselves a bank, they are a Real Estate Investment Trust.

NN Bank: Nonnux White’s REIT. I was the first non-Nonnux White person they considered for a loan, but they kinda flaked on me, and fortunately I wound up not needing the loan. You might see her about a loan yourself.

Midas Bank: Midas Commons has his bank and his gaming empire, and has expressed interest in lending or investing with us, but have not pursued it. You might try them.

OurBank: Owned by LukeConnell Vandeverre’s Hope Capital/World Stock Exchange, offers “real world” depositing and lending interest rates. I tend to not agree with their rationale for this, given the world of SL has an economic growth rate in the hundreds of percents, most interest rates I’ve seen from other banks, which may seem high by RL standards, are actually cheap money relative to SL growth. On the plus side, Luke is dedicated to transparency and reports his ventures numbers to stockholders like a responsible corporate leader should. This gets big ethical points with me. DISCLOSURE NOTE: I am on the board of directors of Hope Capital.

There are a number of other banks popping up all the time, which I’ve not checked out. Perhaps an SL Herald reporter will make the rounds and report on them all in the interest of consumer awareness.

“The Journal of the Business Law Society at the University of Illinois College of Law is running a well documented article on Second Life’s Ginko corporation, which claims to have the equivalent of $475,000 US invested in it but which some have called …

I only make money… not pay money for more linden money or “loan” crap.

Go get some skills or lose some doughs, that’s the way of money life.

(pfft.. loan beggers)

The difference between actual, recorded history and the rantings of David Icke is that Icke is right. He says so himself! What more do you need?