Virtual Economies

Virtual economies are a very controversial topic in today’s society. Virtual worlds are starting to take form of a real life economy, with one-on-one social interaction and the following of some of the unwritten rules in society today (Giles, 2007). These virtual economies even share many of the same features that our society has in the modern world. Wikipedia describes Virtual economies as “an emergent economy existing in a virtual persistent world, usually in the context of an Internet game. People enter these virtual economies recreationally rather than by necessity; however, some people do interact with them for "real" economic benefit.”

In virtual economies today, there are two different types of virtual economies called “open” virtual economies and “closed” virtual economies. “Open” virtual economies are online worlds were people are able to buy and trade tools and virtual property for real money. The most popular “open” virtual economy is known as Second Life. More then 10, 000 people visit this virtual economy every day. Second Life users are allowed to buy, sell, or even trade there commodities for real money. One person even reported on becoming a millionaire in “real life” through her Second Life property business (Giles, 2007). The problem with Second Life that people see coming up is that, this virtual community is like gambling and people will start losing money with it. People may come so addicted to this game, like so many other games and end up losing money in the end. Another view on this subject though, sees Second Life helping people who are unable to find jobs in “real life” being able to invest in this game and make money that is necessary to survive. Second Life’s are a great way to make money, if done right. Another virtual economy that is ever present in today’s society is called a “closed” virtual economy. “Closed” virtual economies are those that do not buy, sell or trade items for “real” money, though they do buy, sell, and trade items with virtual money of some form, but there is no “real” money backing them up. An example of an “closed” virtual economy is the very popular World of Warcraft. More then 7.5 million people have a subscription to this magical world known as Azeroth. World of Warcraft is the most popular game in the internet not only for its graphics and its make believe characters but also for the way the game can simulate a “real life” community. This online virtual economy also allows for its users to feel part of a online community where each player can be part of a guild which goes and fights the big bosses. World of Warcraft allows its players some sense of belonging (Levy, 2006).

Virtual economies are very big in today’s society. They allow the users to participate in economies where there are made up characters and made up items such as tools, property and, commodities. In the future these online virtual economies not matter if there “open” or “closed” are going to be a part of our “real life” economies. They have become too popular for them not to become an everyday ritual for many people.

References:

Giles, Jim (2007). Life's a game. Nature, 445, Retrieved April 6, 2007, from https://ublearns.buffalo.edu/courses/1/200701_256304/content/_687574_1/giles_2007_lifes_a_game.pdf?bsession=20715099&bsession_str=session_id=20715099,user_id_pk1=180750,user_id_sos_id_pk2=1,one_time_token=

Levy, Steven (2006, Sept. 18). World of warcraft: is it a game?. Newsweek, Retrieved April 6, 2007, from http://www.msnbc.msn.com/id/14757769/site/newsweek/page/3/

Virtual economy. (2007, March 29). In Wikipedia, The Free Encyclopedia. Retrieved 16:04, April 6, 2007, from http://en.wikipedia.org/w/index.php?title=Virtual_economy&oldid=118822136