Red Tuesday

If the market crash if 1987 was called Black Monday, the removal of virtual banking institutions in Second Life should be called Red Tuesday. Unlike Black Monday, Linden Lab’s recent decision to cut many banking operations that offer a return on an investment in Lindens (or any currency) is a very good thing. When Ginko first arrived in Second Life, something seemed a bit awry, but many people, much like myself, tried it out (I never put much, maybe 1k or so just to test out the service.) The novelty of banking in Second Life or rather, received a profit on the Linden without having to do much work, is a great novelty, even though Ginko crashed (and burned), there was hope that the stock exchanges would pick up the slack. There are two key problems in finance in Second Life that exist, and are its downfall. The first is there no guarantee from Linden Lab that any money you invest is safe (or any guarantee from anyone for that matter), and the second is that money is being handed to strangers for them to do whatever they wish with it. Continue reading