MUDflation, Legal Action To Hinder MMO Trading?

Thanks to Wired News for its article discussing the pitfalls which may face virtual item and currency trading in MMORPGs. The piece discusses previously covered sites such as the Gaming Open Market, whose founder ruminates on possible issues with TOS violations: "We're getting to the point where we're getting a reasonable amount of attention. I'm sort of afraid that the game companies are going to step in and terminate my accounts because we're violating the terms of service." Another commentator also worries about long-term dangers of virtual item/currency trading, "...because games like Ultima Online and EverQuest have flaws that allow cheaters to duplicate currency, and that ultimately leads to what Hunter calls 'MUDflation,' short for inflation in a multiple-user dimension."

Comments

GOM is a great idea

[jafuser]

So far, Second Life seems to be their most popular market. I've played with it a little bit; it's kind of fun, and taught me a little about how the bigger commodities markets work.

I think Second Life is doing especially well on OGM because the company that runs the game (Linden Labs) has not only allowed it to be used, but has encouraged SL residents to use it.

One of the things that really turned me on to SL was how open-minded the company is that runs it. It's too bad the other bigger MMO companies are afraid to let their users own the fruits of their "labors", including their currency.

Re:Not like the real world

[Carnildo]

The real world has a fixed amount of money (reserve banking not withstanding).

Dead wrong.

The real world has a fixed number of dollar bills and equivalents. The amount of money fluctuates rapidly.

Take a stock certificate. If one share of the stock sells for $25 right now, you would probably accept one share of that stock in payment for something that costs $20. The gap between the worth of the share and the price of the item will cover any broker's fees for selling, and the risk that the stock will go down before you can sell.

How about loans? If I loan you $100,000, with the agreement that, over the life of the loan, the total you'll pay back is $200,000, I could sell that loan to someone else for $200,000. After all, that loan is a promise they'll be paid $200,000 eventually, but until the loan is paid off, that's additional money in circulation that the government didn't print. A credit card is just a variation on a loan, but it also increases the effective amount of money in circulation.

How about playing with time delays in the banking system? Say I write you a check for $100, but I don't have the money in my account to cover it. If, by the time you get around to cashing it, I've been paid, nothing will go wrong, but until then, that's an additional $100 in circulation!