Private Money in Virtual Worlds-how virtual world currency affects RL economics and politics

[Celestiall Nightfire]

Interesting piece that discusses virtual currencies, and mentions our own Linden dollars, and Second Life. 

(Among other virtual and online places)  

Good to see SL and the $L still in the public awareness.  (My younger son alerted me to this article : )

 

http://reason.com/archives/2015/02/19/private-money-in-virtual-world/

[Aislin Ceawlin]

Great article Celestiall, thanks for posting!

[LlazarusLlong]

Interesting, although he doesn't seem to get that virtual currencies are trivial microcosms, suffering disproportionately from the principal problem of even major state-guaranteed banking systems that there is a greater need for trust than is deserved.

In addition, Castronova's opinions would have a little more gravitas if made by a Professor of Economics rather than one whose field of expertise is Media . . .

[Aislin Ceawlin]

Llazarus, you're so right. Good points.

[DejaHo]

My field is the design, study, and implementation of (computer) operating systems. I try so hard to get my head around Economics, but I find that it is a really, really big subject. I understand some of it, I miss some of it, and the rest is Greek to me. (I so much want to learn the Greek language, but that's more to read, in their own language, the Giants of literature.)

I think the article is a good read; well written and informative, but I didn't get where he wanted to go with it. I'm more impressed with the valuation implied with Linden Lab; they have a ~billion dollar a year economy they manage. Not bad for a private company.

[DejaHo]

PS  Unlike Bitcoin, Linden Lab, I'm sure, pay their fair share of USDollar taxes on their 'fake' currency.  And this is a yay for the 'real' USD. 

PPS I love an American success story! 

 

[Celestiall Nightfire]

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DejaHo wrote:

My field is the design, study, and implementation of (computer) operating systems.

I try so hard to get my head around Economics, but I find that it is a really, really big subject. I understand some of it, I miss some of it, and the rest is Greek to me.

(I so much want to learn the Greek language, but that's more to read, in their own language, the Giants of literature.)

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I hope your reference to learning Greek to understand economics is a metaphor. 

Even if you learn Greek....you won't be learning economics that way.  Modern Greece has had 190 years of economic crises out of the last 200.  Ancient Greece gave us many socio-political ideas and philosophies...but, not an understanding of economics.

http://mises.org/library/economic-thought-ancient-greece

 

[LlazarusLlong]

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Celestiall Nightfire wrote:

  Ancient Greece gave us many socio-political ideas and philosophies...but, not an understanding of economics.

 

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Trust me - as someone who studied at the feet of the masters - NOBODY understands Economics.

Except perhaps Mervyn King, who dug the UK and USA out of the banking black hole.

(Did you know that Cambridge University never change their Economics degree exam questions; every year they just change the answers.)