Second Life Real Estate Bubble – Just Like the Real Thing!
As part of a project for my library I am reading Taran Rampersad’s Making Your Mark in Second Life: Business, Land, and Money and found this observation on virtual real estate, well, darkly comic in light of the last 18 months:
Mainland real estate is a very interesting thing. Because the land is purchased through auction, land prices are supposed to be as low as the price won by auction bidders. But this is not always the case. Bidding higher than present market value is risky, but at the time of this writing has been quite popular. The practice has mostly been profitable so far, because in recent months the media hype and the growing popularity of Second Life has caused prices to increase. Like any rising price in real life, of course, the risk is that the prices will create a bubble that bursts later—and at the time of this writing, evidence is accumulating that such a bubble may be bursting.
It’s like the late 90’s internet bubble and the 00’s real estate bubble all mashed up.