I am standing on a tropical island with palm trees and a beautiful ocean view. There is a real estate sign next to me offering a plot of land by the beach for only $50 down and $10 a month. It seems to be a bargain, but is it an illusion?

In one sense, yes. I am exploring Second Life, the online virtual world that is rapidly becoming a commercial phenomenon. In another, no. If I buy the estate, I will hold rights to it. My avatar will be able to live here, or I can sell it to someone else. If I sell again, perhaps after building a virtual villa, I can take my profit in real dollars or exchange Second Life’s synthetic currency for them.