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An article relating to this blog post on Finextra:

Dibspace founder vows to spend a year living on virtual currency

The founder of an online marketplace where people trade using virtual currency has pledged to ditch dollars and spend a year living on the 'dibit'.


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Who says virtual currencies aren't real?

I just read the related article on Dibspace. I thought this is the perfect incentive to start a post on virtual currencies.

With the start of online gaming there was a boom of virtual currencies in the virtual market. I have experienced the one of World of Warcraft in the beginning for example. But of course there are many other examples as well. The basic here is: you make virtual money and pay for virtual things, but you could optionally just buy money as well with real money.

You could play the game to make more money, or you could look for a website selling these virtual currencies (even on Ebay f.e.). To me, that sounds the same as a rather undevelopped currency market place.

Then there are websites like facebook, where you can't play for the virtual currencies but you always have to buy a first package, at least the first time you play with it. What you do with the virtual currencies is still virtual as well. The basic here is: you buy virtual money and you use it for virtual services and objects.

And then the next step is Dibspace, where you get virtual currencies if you open an account and where you can gain more money during 'the game' of referring people and offering REAL services etc. That means we are at that stage already of using virtual currencies to pay for real services...

I wond how long it will take before we have a real virtual currency (no cash available) on Wall Street...

 

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Comments: (1)

A Finextra member
A Finextra member 20 April, 2010, 10:17Be the first to give this comment the thumbs up 0 likes

This is not a new idea (dibspace) just a new name.  It's being called "virtual" currency but there have been "local currency" and "alternative currency" and tracked barter schemes around since the 1970s, and on computers since the 1990s.

http://www.transaction.net/money/lets/

http://www.letslinkuk.net/practice/theory.htm

http://www.ithacahours.com/

http://www.doitgreen.org/article/goods/barter

Also see Paul Krugman's recent book about the global financial crisis, where he uses the case study of a Washington DC babysitting co-op to illustrate principles such as quantitative easing!

 

Rik Coeckelbergs

Rik Coeckelbergs

Independent Advisor, Opinion Maker and Consultant

The Banking Scene

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This post is from a series of posts in the group:

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.


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