Virtual Real Estate

An interesting article on the online game Second Life details the growth of the market for virtual real estate.

Large swathes of undeveloped online property, some bearing an uncanny resemblance to a palm-studded West Coast beachfront idyll, are selling for up to $550 an acre.

That amount is but a song compared with real world real estate, but these are computerized representations of property -- pretty pictures, if you will -- in an online graphic role-playing game known as "Second Life." [...]

Marker owns an ocean-front spread on which he heads Awakening Avatars, the fourth-most-popular social group in the game.

His two-thirds of an acre property could fetch as much as 10 Linden dollars a square meter, or $106 at today's exchange rate, a bit higher than the average price of about $100 for an acre.

All goods and services in the game can be transacted in either Linden or U.S. dollars.

When people criticize online economies for having no significance to the realspace economy, they are entirely wrong. There will always be overlap of the virtual with the real as long true scarcity exists online.

[cross-posted at The Agitator]

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this game is awesome. Just

this game is awesome. Just got it. Very cool.