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Barely a month ago, Randolph Harrison at the Capitalism 2.0 blog sent in an extensive analysis of Second Life's economy that likened it to a pyramid scheme. Second Lifers reacted with dramatic venom, such that Harrison was apparently forced to abandon his research:

Things took a hard turn when I was forced to cancel that project along with most of my Second Life public discussions and debates. Perhaps I can discuss the particulars later, but suffices for now to say that many in the Second Life community have zero tolerance for critics and criticism.

However, that quote serves as background for an even more in-depth analysis, this time focusing quite technically on how the Linden dollar seems headed for inevitable devaluation — unless Linden Lab "buys back" their L$ as its value deflates. Regardless, it appears Linden will have to engage elaborate currency controls to prop up the Second Life "economy" if these trends continue.