Capitalism 2.0

The Linden dollar Game

On Schemes Resembling Objects of Intersecting Trilateral Sides upon a Polygonal Base

In a previous article I asked some very tough questions about the Second Life virtual economy.  That article provocatively proposed a case as to why I believe Second Life's much hyped economy resembles a pyramid Ponzi, or more accurately a type of high yield investment program (HYIP) scheme.  After posting that article I was partially convinced by many respondents that Second Life probably is not a Ponzi scheme as a precise legal definition -- at least probably not in most jurisdictions.  Indeed, after learning more about HYIPs, and in particular HYIP Games, Second Life and the game's system of "virtual currency" satisfy many of the attributes of such schemes.  More about HYIPs later.  First, some background:

One Bubble of a Ride

[Randolph Harrison]

A typical house, in typical suburban San Francisco neighborhood. You could call it "upper middle class". A good grade school, a not so good high school, friendly neighbors, beautiful parks, and everyone seems to forever labor to keep their picket fences white and flowerbeds planted.

This is the tale of a home, purchased in 1996, sold in 2002, and now for sale again in 2007. This is a true story of the real estate bubble, with a real house, real data, real people, and real fortunes to be won and lost.