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Linden dollars no intrinsic value as a form of currency, thus, waiving any responsibility or compensation in case of L$ from the database Linden Lab is not required to pay any compensation if L$ is lost from the database.


The ratio of USD to L$ rarely fluctuates as Residents set the buy and sell price of L$ offered on the exchange. Between February 2008 and February 2011, the rate remained stable with a high of L$270 and a low of L$240 per USD$. Interestingly, Linden Labs is reportedly maintaining a currency peg over the L$, which is perpetually at risk due to the hyperinflation caused by the studio continually generating L$ out of thin air.


quite radically since 2011.


The pose market has also changed. Even some of the better pose makers I shop at are selling poses for a fraction of what I paid in the past.”


Hard-earned money


At the moment, the only place where you can exchange dollars and Linden dollars is the studio’s currency brokerage, the LindeX Currency Exchange. In the past, users were able to use other third-party currency exchanges, but as of August 1, 2015, the Authorized L$ Reseller pilot program has been closed, and the LindeX is the only authorised place to purchase L$. It has also been reported that Linden dollars were once the only way to acquire Bitcoin. Residents bought L$ via PayPal, which would be later exchanged for the cryptocurrency in the digital world.


We have seen examples above of how many residents who have been able to leverage the market trends in Second Life and generate Linden revenue, which they exchange for real-world money. In spite of the fact that this is a marketing point promoted by linden Labs, the company includes at the same time provisions in the Terms of Service which give


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The most influential characters in this topic has been Anshe Chung, known by her avatar name. She began selling and creating custom animations and then used this money to buy and develop virtual land. By doing this, she kept reinvesting funds instead of giving them away. Chung currently owns thousands of servers’ worth of land, most of which are sold or rented to other users as a part of her highly regulated areas.


Philip Rosedale, the former CEO of Linden Lab, has referred to Anshe as “the government” when referring to the role she plays managing her regions. In November 2006 Chung announced that she had “become the first online personality to achieve a net worth exceeding one million US dollars from profits entirely earned inside a virtual world”.


Linden dollars proves one of the first fully-functional examples of digital currency. However, unlike current cryptocurrencies, the virtual currency Linden dollar was supported by a virtual world. The Linden dollar was the only way to interact with all the goods and services provided in the universe of Second Life, and could not be used as a currency in anything other than a very small subset of currencies, including Bitcoin, however temporarily.


Only when the LindeX Currency Exchange was centralised and managed through one regulatory organism, that being Linden Labs, the currency saw stability and security. It is likely that we will see the value of Linden dollars threatened by hyperinflation, which is perhaps partly why the popularity of Second Life businesses has decreased vastly in comparison to a decade ago.


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