Chapter 5 was a little bit difficult to understand. The title of the chapter is an oxymoron: "real virtuality." The author uses QQ coins as an example which are like bitcoins, which are an online virtual currency. If you have played computer games or video games, they will give you options to purchase merchandise in order to help you beat the game. This goes hand in hand with mercantilism but unlike in real life, the author describes it as "free market mercantilism at its best." But if you think about the QQ situation is a bit complicated. Essentially you are trading real money for fake online currency. The value of currency in real life comes from the government setting a value for the currency and its trade value. But with QQ coins, the user is essentially free from government control. I thought it was a pretty interesting read because it reminded of bitcoins.
John Bloom starts the chapter off by explaining to the reader that we normally associate things with what we are already familiar with. For example, in normal language we substitute the use of credit cards by saying we are using money which isn't true. The world doesn't really revolve the way we think it to revolve. Bloom then goes on to explain what QQ coins are, virtual coins for users in their messaging system. The QQ coin became relevant once other game sites began to accept the coins as well. The problem with the virtual currency was that it was difficult to regulate and people began to use it as regular money that couldn't be traced and could avoid being taxed. QQ coins served as a bridge between what is real and what is not. People used the coins in order to gain real money, but at the same time the coins were merely an "afterimage" of what real money is. Regardless of the fact that it is just a virtual currency, the coins needed to be taken care of by the Chinese government in order to protect their real currency. It is important to note that if virtual currencies are left unchecked it could lead to chaos and devaluation of real currencies.
The concept of virtual currency is so interesting to me. My brother and sister have spent so much actual money on virtual money for video games like "League of Legends" and I always told them that they were throwing their money away for nothing. But I guess it actually does gain real value in some circumstances.
ReplyDeleteI think it is not worth to put real currency into virtual currency to play a game because I think game is only a thing can make us relax but we should not be addicted to it. I would like to spend that money on eating or traveling.
ReplyDeleteI am not a gamer but games like that make a fortune. There are so many people spending a lot on games, making game industry very promising. I still can't believe Angry Birds is going to be a movie.
ReplyDeleteIt is interesting how virtual currency can be more valuable more than money at one particular time. For example, Bitcoin soared to a peak $900 in 2013.
ReplyDeleteI agree with your view that virtual money should also be taken care of by the government. Ultimately, there is a merging point between the world of reality and the world of virtuality. The government is the essential force to ensure that the merging is smooth rather than chaotic where they try to swallowing the other one up.
ReplyDeleteVirtual reality nice contrast! It would be nice as title also to explain how the majority of people are inside the virtual world even while they are in the middle of the real one
ReplyDeleteThis chapter is interesting. When I was a child, I like to use real money to exchange to more virtual money. In the virtual world, I can buy many virtual things such as pretty clothes, houses, and etc by using the virtual coin. It gave me happiness so I guess that's also a way using money to buy happiness.
ReplyDeleteI love the idea of virtual currency, however it does confuse me a bit. What is so special about having virtual currency over regular currency
ReplyDeleteVirtual currency is a pretty cool concept. I suppose it's supposed to somehow be more secure than normal money? And the supply of it isn't regulated and controlled by a government, so then it can't be manipulated by fiscal policies, so that's pretty cool. Not entirely sure if it will ever fully take off though.
ReplyDeleteI think virtual currency can be a type of "gambling" game or "investment" where it's more of like casino.
ReplyDeleteI think virtual currency is product of the information age, it is the trend for future. however, the security of this type of currency is not good, which i believe it will be improved in the future.
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