Tuesday, February 23, 2010

Should I Hedge in Linden Dollars?

A couple friends and I thought of hedging with Linden dollars at lunch the other day. The Second Life currency may be too thinly traded, but it represents a blend of several economies since its users are from all over the world.

Exchange rates for Linden dollars look like they have low volatility. On the other hand, one blogger claims that L$ look like either a Ponzi scheme, where early players are rewarded by economic inputs from later players, or like a High-Yield Investment Scheme, rather than a virtual economy.
More on this as I research it.

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