Bitcoin Owners Buying Over USD$650K in Linden Dollars Per Month on a Single Exchange!
Bitcoin may not be used by many people, but here's a very interesting thing: It's being used to buy a lot of Linden Dollars, the official currency of Second Life. Reader Danielle recently pointed us to this very interesting chart of Linden Dollar-Bitcoin transactions on the Virtual World Exchange. If I'm reading it right, 167,629,615 in Linden Dollars were recently exchanged for Bitcoin and vice versa in a single 30 day period -- that's over USD$650,000 at current market rates, per month. On just one third party exchange. (There are others where Bitoin is traded for Linden Dollars, I believe.)
Now, this isn't a massive amount of Linden Dollars in the wider scheme of things, since tens of millions worth of L$ changes hands on a monthly basis, but it is significant. Especially because Linden Dollars can and often are bought and sold for US dollars. The tantalizing question (which we'll likely never know) is this:
Where are most of those Bitcoins going -- into the Second Life economy, to buy virtual mansions and digital Ferraris? Or straight through the SL system and out as cold hard US$, where they're spent on real goods and services? A well-regarded academic told me recently that Bitcoin can't really be free from the powers that be, because it rides on rails that they control. I'm not an expert like him, but if Bitcoin goes through the Second Life economy before coming out as cash, isn't it at least a little bit freer from the powers that be?Tweet