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Ffxi gil, as with any MMORPG currency, is integral to the game play. First I would like to point out that the word Gil is revealed in FFIV to be taken from the name of Gilbart, a common name of the members of the Royal Family of Damcyan, and was originally used as the currency of Damcyan. Noteworthy is the fact that used as a word, Hebrew is the only language that I could find a definition of Gil, which is in fact a common name for males or females, meaning Happiness. Oddly most if not all cultures have stories of how money cannot buy happiness, which I find rather ironic about the name of the currency in the FF series.
Anyhow, within the online game of FFXI, as previously stated, Gil is necessary to advancement within the game. A common way to earn Gil in the game is through random battles, and while it is a long grind, if you are patient and prude in spending, you will find that you can conserve your Gil and build it up for later and more important uses such as armor and weapons. This method is likely the most used by players online or offline. Players who are crafty, and conserve their Gil throughout the leveling process will find that they can take on professions and through careful perusal of items bought and sold in the auction house, may use this Gil to create and sell items for a profit much better than the cost of the materials.
