Interesting article on the High Fidelity economy


#1

Hypergrid Business | How High Fidelity will make money while giving away software

[Philip] went into a bit more detail with the currency, however, explaining that it will be a cryptocurrency, like Bitcoin, except without the volatility. The supply of the currency will increase at the same rate that usage grows, so that it maintains a constant value. "We’re going to shoot for something that’s more like a transactional currency, something nice and stable against real world currency like the Linden Dollar is,” he said.

That sounds very intriguing, can you guys say more?


#2

I have a question?

Are we allowed to blog this ? I know we’re not allowed to blog anything that hapens inside Alpha.

But is public domain information still off limits to blog and report about for us Alphas?


#3

Phillip went into a bit more detail at the MOSES discussion. He specifically called out BITCOIN as problematic, since the supply is limited by design, to prevent inflation. Instead, he pointed at the value of an inflationary model, which results in a more stable Virtual/Dollar ratio like the Linden has enjoyed.

By allowing the assignment clients to generate currency for supporting the domain operations, the rate of currency growth should be close to the rate of demand growth. By adding Currency “sinks” ( like a per/voxel creation charge), we should be able to manage the rate of growth more closely, and maintain the kind of stability he is discussing.

(Reading between the lines…) I’m sure there are a myriad of other design decision factors, like the Feds recent moves into the useful virtual currency markets. It sure seems like those moves make the concept of a centralized currency “transfer” service more likely as a additional revenue stream. High Fidelity handles all the reporting requirements and takes a “transaction fee” for converting the Crypto to “real” currencies and back.


#4

Hi Debs-

You are free to write about anything that has already been published.