The Rise of Virtual Currencies

An article posted a few hours ago on the CNN.com Tech site discusses the rise of virtual currency in the real-world economy. Although hardly the focus of the piece, the article mentions WoW. The author refers to gold selling as an example of virtual currencies and their impact on real world economies. The main focus of the article is to reveal the rise of virtual currencies in the real-world, which we feel is a very valid point. In fact, the mere existence of the WoWenomics blog is but one example of the rise in interest in the economies of virtual worlds and this sort of virtual currency trading.

The CNN article also refers to the virtual gold trade as a black market although we at WoWenomics, while still certainly not fans of the gold for cash industry, view it more as a gray market. This is exemplified simply by virtue of the fact that, while it is a violation of Blizzard’s ToS, the purchase of gold (and other virtual currencies) for cash is still technically legal.

Regardless, it is always interesting to see WoW, and specifically the world of WoWenomics, mentioned in the news. We would have to agree that there is certainly a growing interest in virtual economies from the general populace. We are hearing more and more from readers that are economists first and WoW players second (or sometimes, not players at all!). And we’ve even had a few peers that are in the finance business ask us about “this WoW stuff” from time to time. We even recently added a team member to the WoWenomics group that has never even played the game (or any video game for that matter). He is an economics professor and corporate bond trader by profession and has volunteered to help us out by commenting during our meetings on correlations between the economy of WoW and those of the real world. On his side of the trade, the benefit to joining our team is that he gains first-hand insight into the world of virtual currencies and how they are valued. Most interestingly, his comparisons are most often to the economies of developing nations which, of course, only further speaks to the fact that virtual world economics are on the rise.

Wouldn’t it be funny if all that time we’ve spent in the AH only helped us get better jobs in the future?

Advertisements

3 Comments

Filed under WoW Community News, WoW Economy News, WoW Market Commentary

3 responses to “The Rise of Virtual Currencies

  1. Frankly, I’m surprised more Econ professionals aren’t interested in virtual economies, specifically WoW. The opportunity to study a market that is devoid of variables such as branding and product differentiation (unless, of course, your saronite is better than mine) seems like it would be extremely beneficial because it would isolate variables like supply and demand and give real insight into the behavior of consumers and suppliers in a relatively “pure” economic setting.

    Real-world pandemic specialists were interested in the Corrupted Blood incident, after all. We care about our “virtual” selves, and we care about our “virtual” money, so we behave accordingly.

  2. Wow, I would be interested to see on your site a breakdown on the profiles of the people writing on wowenomics!

    I’m pretty sure it will be an intriguing read

    • jederus

      Bah, they’d never let me reveal their names but perhaps I can do a profile of their WoW and real life backgrounds at some point using aliases?

      You may note, I recently enabled a new author from our team on the site who will (hopefully) cover for me when I am away on business trips or vacation (I’ve got a few coming up soon).

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s