The first millionaire of virtual worlds, Anshe Chung, announced that she is about to make financial market which will connect three virtual worlds: Second Life, Entropia Universe and IMVU. According to press release
the new financial market will allow Second Life residents to invest their Linden DOLLARS (L$) directly in ventures such as banks, malls or biospheres in Entropia Universe while those who earned their fortunes in Entropia dollars will be able to easily diversify their investments into assets such as Second Life virtual land funds, virtual game development businesses or the IMVU fashion design industry.
Now, that is a brave move for sure. In a month or so, we'll have actual stock market of virtual worlds. Currency conversion will go not only between Linden$ and US$ but other micro-currencies will also be there.
Some questions arises: Are virtual currencies and economies of virtual worlds strong enough to support financial market between worlds? There is more than good intentions and capital that is needed for such institution. Is there enough interest for entrepreneurs to be active in more than one environment? Does all this makes any sense? Are our worlds capable of being connected in such a way?
At this moment we can say they are not. Once again need for open standards arise and this initiative is a step forward in that direction. And then, when it happen and when cross-world economy starts going for real, how will it change our worlds?
Once connected, different worlds will be influencing each other. Builders from one will change the shape and look of the other. Residents of different worlds may become tourists in all other. They may find some other world more interesting or more cozy, they can migrate. Yes, we were able to migrate before too but then we were leaving one system to start from the scratch in another. Now, we can pack our things and move with our possessions and our money in our pockets. That should make a huge impact on how both residents and developers deal with our virtual homelands.
This sounds like an amazing idea. Implementing such an economy will be difficult and hard-won. There are too many things for one person to think about in order to make such a virtual financial system come to life. A team of skilled economists, finance advisors, and select few members from each world would be a smart idea.
I am currently involved in the IMVU community. Heavily involved. I’m sorry to say that I do not believe they are stable enough in their virtual economy to take such a huge step forward. There are quite a few problems internally with both the business and the members.
In my opinion, creating an economy system where virtual currency can be traded from one world to another would be an incredible feat and one that would bring many virtual communities together.
There are many issues which arise… Hopefully, it has been addressed or at least brought out into light. Ones that strike me now are:
*What happens with users who are members of multiple worlds involved with this virtual currency?
*Will there be plans of being able to move currency with the users’ account?
*Will the formula for the stock market be based off the RL stock market?
*Will the various virtual communities be working together?
*Or will there be a registration to the stock market?
*Is the stock market seperate from the various virtual worlds?
*Or will it be based out of one or few of the worlds to provide some sort of stability?
Anyway, I wish you the best of luck. I really am rooting for you and only want to help. I’m not one to reprimand without cause, nor reward without the same. Be safe and well, but most of all happy ^.^
Jacobe, thanks for the set of great questions.
I simply don’t believe the level of my optimism back in May. Let’s say I was young. :)
Well, you pulled the string. I started replying but at this moment it sounds not like a new post but more like a series. Which is something I am really thankful. Stay tuned :)
[...] riflessioni sulla micro-moneta "virtuale"; [...]
Virtual worlds that exist today are mainly games. So as with any human activity it may be best to keep it simple and grow it as needed. As I see it right now, that means preserving private and intellectual property. For sl that means gamers Inventory and content manufacturers’ rights to their creations across platform Grids. So there may be a need to have a governing body responsible to authenticate these "Assets", having a policy mechanism that allows Sims to join, migrate, or be set as out side their domain for individual participants their to fend for themselves in their choice of location. Banks do not want to manage peoples assets, but their cash transactions some of which are investments. This maybe the sticky point of defining just whom exactly is in charge of that as Stock Exchanges operate at the highest level of publicly traded securities that are solvent enough to earn their place on trading floor which is a further abstraction of buyer and seller sentiment of economic value or collapse for those who Chart. I’m not sure we need to be talking about "Charting SL Virtual Money Trees" just yet.
It is never too early to think about making a good base for the future. "Governing body" or a non-profit foundation that will make things go smoothly is needed ASAP. We already have multiple grids and keeping those separated means losing a lot for all the sides involved.
Speaking of money, things will probably work as in the rest of the world. We’ll have institutions that will be (or not will be) trusted. Depending on that, those institutions will profit or fail. There is no guarantee that any money (US$, EUR…) will be worthy in the future, nor there is any guarantee that any institution (banks, PayPal) will handle our money as we want. Only thing that makes them do so is that if they don’t people will stop using them and go elsewhere.