Comments on: L$ Exchange Rate Data 2004, 2005, and 2006 http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/ By Linden Lab Tue, 02 Dec 2008 08:28:23 +0000 http://wordpress.org/?v=MU hourly 1 By: Virtual Worlds, Social Networking, Web 2.0: The Jealous Mistress Is Online | MorePartnerIncome.com http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-591179 Virtual Worlds, Social Networking, Web 2.0: The Jealous Mistress Is Online | MorePartnerIncome.com Fri, 21 Mar 2008 05:01:02 +0000 http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-591179 [...] story, the IRS wants to tax profits made while inside Second Life.  The currency , the Linden, has an exchange rate and can be converted to US Dollars.  Where there is money, there is potential for [...] [...] story, the IRS wants to tax profits made while inside Second Life.  The currency , the Linden, has an exchange rate and can be converted to US Dollars.  Where there is money, there is potential for [...]

]]> By: 'Umar http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-211993 'Umar Wed, 11 Apr 2007 09:32:01 +0000 http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-211993 <strong>'Umar</strong> I realy enjoyed reading this site, i needed some info on this subject for my new study and your post helped me out a lot thank you for that ‘Umar

I realy enjoyed reading this site, i needed some info on this subject for my new study and your post helped me out a lot thank you for that

]]> By: MMODump.com » Exporting your Linden wealth http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-151962 MMODump.com » Exporting your Linden wealth Fri, 09 Feb 2007 18:51:52 +0000 http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-151962 [...] you can exchange Linden dollars for US currency — even outside the official Second Life exchange — one assumes Doctorow [...] [...] you can exchange Linden dollars for US currency — even outside the official Second Life exchange — one assumes Doctorow [...]

]]> By: Gil Druart http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-121857 Gil Druart Thu, 04 Jan 2007 14:48:03 +0000 http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-121857 *Inflamatory posting follows - please do not read with your sense of humour disengaged* Amusingly US-centric angst over whether to call the currency 'Lindens' or 'Linden Dollars'. In the nord-European groups where I hang most people call them just 'dollars'. It's never caused any confusion that I'm aware of (besides - both are 'funny money' as far as we are concerned and more-or-less in free fall woohoo!). Do US-Americans have a word for Schadenfreude? ;-) As for all this bitching about how the graph is presented - they've given you the data people! Draw your own graph if you don't like theirs. If you can't you wouldn't be capable of interpreting it correctly anyway, so go post on a topic that's non-numerate friendly. For anyone that's put up with my opinions to get this far - my serious comment is that exchange rate data is fairly meaningless in isolation - in this case without price and/or rate of inflation data for SL. Ultimately I - as a dedicated consumer ;-) - couldn't care less about the exchange rate - what I care about is how much that yummy dress is actually going to cost me in real terms - everything else is just book-keeping. Hugs, kisses and a Happy New Year to all at Linden Labs *Inflamatory posting follows - please do not read with your sense of humour disengaged*

Amusingly US-centric angst over whether to call the currency ‘Lindens’ or ‘Linden Dollars’. In the nord-European groups where I hang most people call them just ‘dollars’. It’s never caused any confusion that I’m aware of (besides - both are ‘funny money’ as far as we are concerned and more-or-less in free fall woohoo!). Do US-Americans have a word for Schadenfreude? ;-)

As for all this bitching about how the graph is presented - they’ve given you the data people! Draw your own graph if you don’t like theirs. If you can’t you wouldn’t be capable of interpreting it correctly anyway, so go post on a topic that’s non-numerate friendly.

For anyone that’s put up with my opinions to get this far - my serious comment is that exchange rate data is fairly meaningless in isolation - in this case without price and/or rate of inflation data for SL. Ultimately I - as a dedicated consumer ;-) - couldn’t care less about the exchange rate - what I care about is how much that yummy dress is actually going to cost me in real terms - everything else is just book-keeping.

Hugs, kisses and a Happy New Year to all at Linden Labs

]]> By: John Horner http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-121795 John Horner Thu, 04 Jan 2007 10:35:01 +0000 http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-121795 I tend to agree with Aodhan. With FOREX trading graphs do show a clear picture and it seems to me we have an improving Linden vis-a-vis the US dollar together with an increase in volume. I think that is good for the virtual economy as most content creators should value a strong currency, and of course if the Linden continues to improve we could see price reductions for content and land, although of course the US dollar costs would remain more or less constant Just a personal view I tend to agree with Aodhan.

With FOREX trading graphs do show a clear picture and it seems to me we have an improving Linden vis-a-vis the US dollar together with an increase in volume.

I think that is good for the virtual economy as most content creators should value a strong currency, and of course if the Linden continues to improve we could see price reductions for content and land, although of course the US dollar costs would remain more or less constant

Just a personal view

]]> By: Aodhan McDunnough http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-121478 Aodhan McDunnough Thu, 04 Jan 2007 03:42:10 +0000 http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-121478 @irolan You can read it off the chart as presented. The scale already reflects the number of L$ you get per US$. The L$ has gradually been getting stronger as of late which means, yes, less L$ per US$ if you're buying. It's been a seller's market lately on the Lindex. The L$ buying force has been pretty strong the past few weeks and this will cause the Linden value to rise, just like it would have any currency or commercial product. The fact that it has been steadily rising means the L$ has not yet found its equilibrium level. @irolan

You can read it off the chart as presented. The scale already reflects the number of L$ you get per US$. The L$ has gradually been getting stronger as of late which means, yes, less L$ per US$ if you’re buying. It’s been a seller’s market lately on the Lindex. The L$ buying force has been pretty strong the past few weeks and this will cause the Linden value to rise, just like it would have any currency or commercial product.

The fact that it has been steadily rising means the L$ has not yet found its equilibrium level.

]]> By: Har Fairweather http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-121323 Har Fairweather Thu, 04 Jan 2007 01:17:23 +0000 http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-121323 This is a slight but related digression, and a pet peeve of mine. The bid and ask offers SLExchange lists in its order "book" have been listed backwards to the universal usage in financial markets everywhere (else). So you have the odd situation of what it calls "bids" being uniformly higher than its "ask" prices. What a wonderful opportunity for arbitrage if that were true! in fact, what it calls "bids" are actually the asking prices of people trying to sell L$, and what it calls the "ask" column is actually the prices people are offering to buy them. It would be helpful to people to label the entries correctly. I know everyone can figure out what they really mean, but why should everyone have to? They should please label their market book correctly because what they do now is confusing and annoying. This is a slight but related digression, and a pet peeve of mine. The bid and ask offers SLExchange lists in its order “book” have been listed backwards to the universal usage in financial markets everywhere (else). So you have the odd situation of what it calls “bids” being uniformly higher than its “ask” prices. What a wonderful opportunity for arbitrage if that were true!

in fact, what it calls “bids” are actually the asking prices of people trying to sell L$, and what it calls the “ask” column is actually the prices people are offering to buy them. It would be helpful to people to label the entries correctly. I know everyone can figure out what they really mean, but why should everyone have to? They should please label their market book correctly because what they do now is confusing and annoying.

]]> By: irolan http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-121149 irolan Wed, 03 Jan 2007 23:17:44 +0000 http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-121149 What about a chart how the other way round developed? How many L$ I can GET for one USD? That seems to get lower and lower continuously, I'd like to see a chart of that. What about a chart how the other way round developed? How many L$ I can GET for one USD? That seems to get lower and lower continuously, I’d like to see a chart of that.

]]> By: Qwerty Burns http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-121138 Qwerty Burns Wed, 03 Jan 2007 22:49:14 +0000 http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-121138 Just to comment on income taxes and as a warning to most people who are on the big money make; the real problem will be when L$ is converted back to cash and the transfer of this cash. I'm sure the US has similiar regulations to other countries where finiancial institutions and solicitors (Lawyers) have to report the transfer of large sums of money to the goverment organisation responsible for income tax (I believe the threshold in the US is $10,000?). In fact I think its worse in the US, any trading company has to report large sums of money received from a customer under your recent Anti-terrorism Patriot Act. These reports may not be copied to you and usually are automatic as far as banks are concerned which must surely include Lindenlab? If the reports are ongoing I'm sure you might find yourself investigated and will have to suffer an audit. Note that you can download from Lindenlab a history of your offworld and inworld transactions. Lindenlab are therefore doing you a favour against potential overzealous audits and over the top tax estimates, not to mentioned possible allegations of money laundering. When you sell objects, script etc you are being paid for a service, however unreal it seems and hence the income could be viewed as taxable. Back home my income from SL will be viewed as world income subject to tax how ever it was made. It would be recommended that you be totally familiar with the tax laws of your country. The fact that tax inspectors are not presently jumping on you now is a matter of policy rather than a need to change the law. It a pity we can't be real citizens of SL with a proper passport and so on. Especially the fact we already pay a tax on our L$ when we own virtual land. Or better still why can't Lindenlab base it self in a tax free haven, preferably hot & sunny and we could all has some real fun with our respective inland revenue services. Just to comment on income taxes and as a warning to most people who are on the big money make; the real problem will be when L$ is converted back to cash and the transfer of this cash. I’m sure the US has similiar regulations to other countries where finiancial institutions and solicitors (Lawyers) have to report the transfer of large sums of money to the goverment organisation responsible for income tax (I believe the threshold in the US is $10,000?). In fact I think its worse in the US, any trading company has to report large sums of money received from a customer under your recent Anti-terrorism Patriot Act. These reports may not be copied to you and usually are automatic as far as banks are concerned which must surely include Lindenlab? If the reports are ongoing I’m sure you might find yourself investigated and will have to suffer an audit. Note that you can download from Lindenlab a history of your offworld and inworld transactions. Lindenlab are therefore doing you a favour against potential overzealous audits and over the top tax estimates, not to mentioned possible allegations of money laundering. When you sell objects, script etc you are being paid for a service, however unreal it seems and hence the income could be viewed as taxable. Back home my income from SL will be viewed as world income subject to tax how ever it was made. It would be recommended that you be totally familiar with the tax laws of your country. The fact that tax inspectors are not presently jumping on you now is a matter of policy rather than a need to change the law.

It a pity we can’t be real citizens of SL with a proper passport and so on. Especially the fact we already pay a tax on our L$ when we own virtual land. Or better still why can’t Lindenlab base it self in a tax free haven, preferably hot & sunny and we could all has some real fun with our respective inland revenue services.

]]> By: Tommy http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-120927 Tommy Wed, 03 Jan 2007 20:27:39 +0000 http://blog.secondlife.com/2007/01/02/l-exchange-rate-data-2004-2005-and-2006/#comment-120927 Geesh. The chart is not perfect, but it is understandable. The exchange rate is nearly constant, which is generally a good thing. The one important thing is the *amount of money* changing hands. Sure, it is smaller than food and clothing and software which have obvious tangible value in the real world, but for an exercise in fun in an alternative existence and a new mode of using the internet, it is staggering. Yea SL. And I hate the fact that the language is changing as much as the next guy, but it is. I just found out yesterday that the word Orange used to be Norange, and people contracted "a norange" to "an orange". Same with napple. I have heard plenty of idiots saying " a whole nuther" and no doubt some day "nuther" will be an actual word. I have decided to give up the fight and join these guys who put their food in the microwave, and spend Lindens. Geesh.

The chart is not perfect, but it is understandable.
The exchange rate is nearly constant, which is generally a good thing.

The one important thing is the *amount of money* changing hands. Sure, it is smaller than food and clothing and software which have obvious tangible value in the real world, but for an exercise in fun in an alternative existence and a new mode of using the internet, it is staggering. Yea SL.

And I hate the fact that the language is changing as much as the next guy, but it is. I just found out yesterday that the word Orange used to be Norange, and people contracted “a norange” to “an orange”. Same with napple. I have heard plenty of idiots saying ” a whole nuther” and no doubt some day “nuther” will be an actual word. I have decided to give up the fight and join these guys who put their food in the microwave, and spend Lindens.

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