The Wall Street Journal has a great article about the shutdown of the Second Life banks. For those unaware of what Second Life is, it is a virtual world in which users can create their own custom avatars and participate in all the same activities that they do in real life. It is currently the most active virtual world on the web with over 187,000 active users in the U.S. alone and tens of thousands of active users in countries across Europe, Asia and South America.
In the whole scheme of things, Second Life is still extremely small in comparison to the massive social network behemoths MySpace and Facebook but there are some extremely dedicated users on the site. One of the key components of Second Life is the virtual currency that can be used to purchase products and services throughout the virtual world. A few groups took it upon themselves to open up banks within the virtual world and promised extremely high interest rates, one of which offered a 200 percent yearly interest rate.
That bank currently owes depositors $20,000 and claims that they will be repaying depositors the remaining amount. While $20,000 is absolutely nothing for a real-world bank, $20,000 is substantial for a bank owned by one individual. Linden Labs, the creators of SecondLife, announced two weeks ago that they would be shutting down the privately run banks and as a result there was a run on the banks. It appears that rather than the same thing that happened prior to the great depression, these virtual banks are actually capable of honoring all depositors requests.
The Wall Street Journal describes one of the individual bank owners, Joshua Zarwel, who is a 29-year-old graduate student in New York:
Mr. Zarwel’s avatar, named Teufel Hauptmann, used the deposits — averaging $25 per user — to buy and sell Linden dollars on the Second Life currency exchange, known as the LindeX. He says he parlayed his currency arbitrage into about $15,000 in actual profit. “It started as a hobby and grew into something more,” he says.
Joshua was able to pay depositors a significant 24 to 30 percent per year, far beyond the interest rate provided by any real-world bank. It appears as though the Second Life banks have become more of an educational experiment for financial buffs rather than significant institutions. For the time being, Second Life will be able to avoid a great depression while in the real world we try to stave of a significant recession.
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First of all, I have been there, have done that. Had clubs, owned land, made friends, money, and fell in love. Second life on the surface, especially for the newbie and Entrepreneur/artist is a fun and cool place to make some friends, and make some money. It is looked at as a supercharged chat room, a video game. But the nature of its name is where the insidiousness is. As much of a second life (SL) as it might be, in order to operate you still have to use your Real Life (RL) abilities. You do not follow a different thought and emotional pattern when in SL. You can only use what you know in RL. But kidding yourself is one of the appeals of SL. You eventually get lost in it.
At first it is new and exciting. Like a new video game. Learning the functions that move your avatar around, visiting places and socializing with the natives. You are perfect, and you can fly. No sickness, no need for money (well not as much) and people don’t have bad breath and, as a “normal”, “intelligent” person, it is an interesting place to explore and learn. But it eventually becomes one of three things. 1. Boring, like a video game you have played over and over. 2. An environment to explore your creative ability to design and sell things. Or, 3 it consumes your psyche.
The first two are what they are; the third is the meat and potatoes of SL. This is the one that is more consistent. Do you really think the folks at Linden Labs are spending their free time on SL.? No, they are spending the money they are making in RL (SL is a business so it is RL for them) on RL things.
There comes a saturation point where you walk away or get sucked in. I will say this for the last time and it does not apply to you newbie’s, or the smart ones that are making money off the lonely. It is a place to hide from reality. It is a place where weak, lost souls go to escape from the depth and breadth of life. I will allow some latitude for you shut-ins. Some people have nothing else but the four walls of the room they are in. SL can provide a form of “human” entertainment that they otherwise would not be able to get. But, that just causes the shut-in to let go of their emotional self being even more. This is a hard pill to swallow, no one wants to take a good look at them selves and most do not. But the covert nature of SL allows you to cut loose. Sort of the absolute power corrupts absolutely theory. People that stay too long get lost in it. And yes, justifying all the way, that it is just a game. For the predator, and a predator is weak by nature, it is a place to be free of thought and persecution. To dominate the weak that makes SL their home. And, it is a place for the weak to not be judged, a place that they can feel and accept that who they are is ok, even if it is with the few. Some people can handle the trials and tribulations of life, some can’t and they end up in SL. You start to see a symbiotic circle of relationships in SL. For the people designing objects to sell, they may not interact totally and directly with the person/s and, their sales may come from across the board. The newbie that is playing the “game” to the obsessed, but, the obsessed is a long term customer. Theses business individuals usually get in, add new product, convert their lindens to dollars or pounds and get out.
The tragedy is the weak and broken. Don’t roll your eyes, In the Real World we are always conned with flashy marketing to get us to buy something or believe something in order to be more acceptable. Magic creams or potions. Don’t kid yourself; Second Life is about making money. Making money off of what? Our loneliness and our lack of self worth in the real world. HELLO, McFly!! It is called Second Life.
It might be simple, you build a club, people come and visit or create a group, and you solicit for members. People get together and boom, you feel wanted and needed. Building your dream home in the clouds and littering your lawn with cool things like jets and swimming pools. That can make you popular. Walking in a park with your perfect Avatar girlfriend/boyfriend, no RL issues so it is a perfect relationship. That leads to good puppet sex. Mmmm nice. All this is accomplished by tugging on your weakness, your emotional frailty. Either you are not getting it in RL or are too afraid to face the truth of how to exist in RL. You can’t handle the truth and if you are a long term SL puppet, you just can’t handle life, Real Life. Don’t get me wrong, we all like to escape from time to time.
In some places it is much darker, like I said before, predators hunting the weak. The Gorean Master and the slaves that he takes control of. This one is unusual, in that the Master has total control over the slave. The “slave” giving not only total control of their Avatar, and who can communicate to them, but also, control as to when they will or will not talk to what they can wear. Believe me this does carry over to real life. Imagine the fun of kneeling next to your Avatar Master and saying nothing. Second life being nothing more then a place to be told what to do, serving fake food and ale. You want to call it guided, or taught? Hey, what ever floats your boat? I know just a video game, right? This setup just allows the predator to get in that persons head and develop a false sense of security. Tell that to your husband, wife, girlfriend, or boyfriend. Why you are glued to the PC instead of enjoying life, REAL LIFE. And, couples also get on there too, as couples, this is a nutty one. Worked hard all week, beautiful weekend, and, you both are on a computer, every free moment, building and designing that special home, having that child you never could have. (Yes, people do play the part of the child.) I find it unhealthy when instead of developing a better real life and real relationship in RL. You take that precious time and waste it. Yes, ok… You are free to do what you want. But there are plenty of damaged people on SL. And your fantasy could be causing them to loose sense of reality, along with your lost sense of reality. Their marriages, get funky, destroyed, their children get neglected. And you get a ridiculous God complex that makes you anti social in the Real World, which just plummets yourself deeper in to SL. Cha Ching! Sweet business you got Linden People.
You have the 50+ couple that spends every “free” moment in SL being the King and Queen. Oh, and so good to their obedient subjects. At their beckons call, at their total command. Or, the sexual perverts. Ok, my opinion….. That can now live out the fantasy of doing it with a farm animal. Or, kneeling down and being the public toilet. Sex is rampant in SL. The anonymous nature of your avatar is something too. You really do not know if the man is a woman or the woman is a man, plenty of men that are living out their desire to be a Transsexual, or a woman. Plenty of women that want to love another woman, so she hides in the body of a man. I guess what you don’t know won’t hurt you. Hey, no one is getting hurt, no aids. Nicey nice. The soul is willing but the flesh is weak. So, the wall that SL provides, allows for an easier transition to experiment. Sad part is as your getting deeper and deeper; you are getting more lost in fantasy then reality and they start to blend. Actually, you probably were lost between the two to begin with. Now you go out into the real world. Take a break; meet one of your SL friends. Break the rule, cross that line; remember SL and RL are supposed to be two different places. People meet up, some get married, the rare few. But mostly it is a letdown, disappointment, and harm to others. It is a dirty little secret. Who wants to tell people that you got into that trouble because you decided to meet your “make believe” friend?
Lips stay sealed, people get hurt. And in the end, the only place they feel right, the only place that people understand is right back on Second Life. CHA CHING!
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