I often think of virtual worlds such as Second Life as a form of escapism from the real world and all of the stresses that come with “reality.” However, Second Life is beginning to mimic real life, and a little too much so for my liking. Somehow that fine line of virtual life and real life is slowly erasing itself and the two worlds are beginning to mesh.
In Second Life, you can convert your real money into the Linden and purchase things for your Second Life persona. I’ve never actually really understood why anyone would want to use real money to purchase something that is not tangible. However, I realize I am in the minority as Second Life is booming with virtual businesses converting that Linden into real dollars. Such is the case for Anshe Chung, Second Life’s largest real estate developer. Your Second Life persona can pay Anshe Chung Studios in Linden for your web based land and home, but in the end it is Chung with the tangible product: money in her non-virtual bank account, $1.6 million to be exact.
Because of businesses like Chung’s, the IRS has now stepped in claiming that any money made in Second Life is taxable. CNNMoney.com claims it to be similar as when selling on ebay. However, I’m not sure I can see a connection. On ebay you exchange real money for a real physical product. In Second Life, it’s virtual money for a virtual product. Is there an accountant out there that understands Linden? Is there a place on your tax form where you can report how many Linden dollars you made and if you are owed a return, is it given to you in Linden? I’m sure it can all get confusing.
Besides real businesses entering the virtual world, politicians have also set up camp on Second Life as well. John Edwards has his virtual campaign headquarters on Second Life. Media Post just reported that those headquarters were recently vandalized by a group that calls themselves, “Patriotic Nigras,” who claim to be Democrats just having a little fun with their liberal Presidential candidate. Just as in the real world, Edwards has to fill out a grievance regarding the vandalism and go through a formal process with Second Life. I have to wonder if it’s worth it. If his HQ’s were vandalized in real life, there would be serious legal repercussions for the parties responsible for the act, but a computer generated HQ (paid for with real money)? Can he really do anything about it?
It’s interesting to hear how much real life is meshing in the virtual world and watching it all play out. As digital media becomes a way of life for us all, I wonder when the time will come when that “virtual” line is erased.
What do you think?
Posted by 
