How does linden labs make money

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My account is on hold and I don't know why. How do I remove someone from my group? VAT laws apply regardless of transaction size; the issue here is that Linden Labs have chosen to legally define the Linden dollar as a digital service rather than a digital currency.

Second Life offers no mechanism for a business holder to establish if a customer is European or not, making it impossible for the business to collect VAT from Europeans, however it is unclear whether the law requires them to do so - since Linden dollars are not legally classified as a currency, it may be the case that capital gains tax would be more appropriate.

If Linden dollars were a recognised currency, then normal money exchanger laws would apply to Linden Lab, and VAT would only be chargeable on the money exchangers conversion fees and not the entire amount of the transaction. Economic Bias Based on economic statistics released by Linden Lab, the economy of Second Life is extremely unbalanced.

Users on the Second Life forums have calculated the Gini coefficient of Second Life to regularly exceed 0. Although economic inequality is not a dangerous social problem in Second Life, since there is no need to buy food or earn anything in order to survive, it does make the world unappealing to more competitive users. Threats to the Linden economy A greater concern is that the Linden economy may itself be endangered by external forces that can satisfy the bulk of demand within Second Life while bypassing the in-world economy.

The most common of these is the intrusion of companies that can supply content within Second Life for free because their revenue model exists outside Second Life. A similar threat has come from the use of cheap labour, the wide scope of some Second Life businesses. Selling such items was viable for Anshe because the majority of her income came from the sale and maintenance of land, used to host houses within which the furniture was placed; but posed a threat to furniture makers as such low prices would make it impossible for stores not supported by an auxiliary business to compete.

Because of the lower costs in Second Life, it suffers from a greater level of irrational economic behaviour than real economies. A business using a model which has proven economically unviable may be kept open for months or even years using the owner's real money, because the cost of doing so is so low and some business owners are more motivated by a sense of "winning" than monetary profit.

For example, some businesses spend more on marketing than they earn. These businesses compete with, and potentially damage the market for, other businesses that are striving for economic viability. Culture of Second Life — Contents 1 Activities of residents 1.

Criticism of Second Life — Due to constant development, and as an open environment accessible by almost anyone with access to the Internet,[1] a number of difficult issues have arisen around Second Life. Its economy is unlikely to plummet, just as it refuses to grow at nuclear rates. It was summertime. It was possible to have a normal life.

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From our Obsession. Capitalism is just a collection of human decisions. Not only has Linden Lab tried to reduce their own corporate liability, but they have also sought to limit the exposure of their customers to fraud. For all the company's good intentions, residents still have found ways to scam others within the Second Life platform.

No fiat currency will even make such demands of those who transact with that currency, because it would represent an undue risk of holding that currency. Virtual currency is not viewed as real money, but as property for tax purposes. Property tax laws, therefore, apply to Linden dollar transactions. A taxpayer is required to include the fair market value of any Linden money obtained when calculating his gross income.

If the taxpayer used the virtual currency strictly for investment gains, any capital gains or losses from the investments made are taxed appropriately. Hypergrid Business. Your Privacy Rights.

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