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Virtual Economies
The way that we comprehend money, in terms of its value to us, is mainly based on trust and shared belief in common value. This isn’t really news to anyone, and it does not stop being true if you stop thinking of currency and start thinking of precious metals such as gold instead; while a handful of hard commodities retain value as material used in manufacturing, much of the reason we value gold so highly is because we perceive it as valuable. With that out of the way we can really start to think of why we value money and how we go about doing it, and with that in mind let’s analyze the complex phenomenon of the digital age: the virtual economy.

The 1st place to look for an example of a virtual economy is the world of online gaming. Massively Multiplayer Online Roleplaying Games (MMORPGs or MMOs for short) feature in-game economies of varying robustness as part of the structure of the game. Depending on the game, this may range from common trading of goods between players to auction houses using in-game currency to manipulation of in-game investments, commonly including unaffiliated however inextricably linked side economies involving exchanges of real currency for in-game items through eBay or other sites specifically created for this purpose.

One game in particular, EVE Online, focuses heavily on economics and trade in its gameplay, with players often taking on the roles of outer-space traders and merchants. What makes EVE particularly interesting is its approach to the interaction of real money to in-game commodities: because of rampant abuse by unscrupulous individuals, the game’s 30-day subscriptions have been commoditized as in-game PLEX items which can be actual items that can be picked up and carried around. CCP, the game’s publisher, doesn’t place any additional restrictions or penalties on player behavior, so it is not only possible for someone to steal these kinds of PLEXes and resell them, it is a definite concern given the community of in-game pirates and raiders.

Between the open market economy and the sideline economy of selling PLEXes and in-game currency for real money, it is entirely possible to trade and raid in-game with the end result of turning a real world profit. Recently, one player manipulated other players in an investment scheme that allowed him to gain majority control of an in-game corporation and liquidate its assets. “Negative Bobby” walked away from his months-long scheme with some 850 billion worth of the game’s currency, that can then be used to buy over 2500 PLEX. Given that each PLEX is worth $ 14.95, “Harmful Bobby” was able to turn his months of gameplay and fictional currency into around $ 45,000 worth of cold hard cash. “Bobby” is just one example, indicative of the thousands of players who keep this virtual economy running.

Virtual economies don’t just appear online, though. In 1992, the Brazilian government launched a plan to save the country’s economy, which was in a terrible state since the Brazilian people didn’t trust the government to control inflation because of decades of failed attempts. This plan, at its core, involved using a new currency called the “real” (which means both royal and exact in Portuguese) which remained stable, while the old cruzeiro’s value fluctuated. Before the real, if you went to the store to buy an apple, the nation’s 80% inflation rate meant that you might see an apple for 1 cruizeiro one day and eight cruzeiros the next month. After the real was implemented, that same apple would cost 1 real every single day, but the number of cruzeiros that made up a real would be different from day to day.

Basically, the Brazilian government tried to trick its people into choosing to use a currency that was not tied to any other currency and did not have any physical representation as a way to convince the people that inflation was not an issue. And it worked. As of August 2010, the Brazilian inflation rate is 4.44%, and though a sizable number of people live below the poverty line there, the fact that Brazil still exists as a country and that an orange does not cost eight million reais shows that the plan was a success.

Let’s stop and consider that for a minute, because the comparison is extremely interesting. What this says, deep down, is that for a time the Brazilian economy was even less real than the economic system of a video game is nowadays. What’s more, each of them are entirely viable in their own way: the Brazilian government really succeeded in its goal, and the EVE economy acts like a real one in every way, with currency and commodities and relationships with other currencies. This means, at its core, that it’s entirely possible to create an economy wholesale online which can theoretically be linked to national economies in a way that actually affects the national economies in a meaningful fashion. The trick to it, as with any economy, is convincing people that it works.

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If you have any administrative skills that you feel you could be putting to better use, why not find some work via your home computer?

The beauty of the internet is that you can actually work for people in lots of different countries without leaving your own home. Work is sent via email and so long as you are quick and efficient you will have a deluge of clients who are desperate to find someone who can do the job they need doing.

Why work in a stuffy office when you can work from home doing exactly the same kind of thing for a wide range of people, choosing when you want to work and taking control of your own life?

Virtual assistants are everywhere nowadays. The combination of email, online messaging systems and telephones has made it easy to keep in touch with people from all over the world. You don’t need to be able to hand someone a solid document anymore – you simply attach it to an email and off it goes, arriving in the inbox of your recipient in just a few seconds.

Virtual assistants have a wide range of skills so it doesn’t matter if you don’t have all of them; in fact it can often work in your favor if you can demonstrate that you have extensive experience in one area. For example it may be that you are an exceedingly fast typist, or a good researcher, or you have passed all your bookkeeping exams and you are qualified to help people with keeping their own records.

But how do you find the work in the first place?

The best thing to do is to visit one of the many online job sites that invite freelancers to sign up and look for work. Employers (often self employed freelancers themselves) post the work they have available and if you like the look of the job and you want to bid on it you do so, making sure you post a realistic bid and you are happy to do the work for that amount should you win the job.

Be persistent to begin with, since it may take a short while to get that first contract, but once you are off and running you will soon start winning other assignments. Most sites offer a feedback rating tool and once your feedback starts going up more people will give you the chance to work for them.

It is a good idea to join more than one site since there are a number of them around and you may find you like one more than another, or you get more work from one as compared to another. Make sure you keep accurate records of everything you do and take the time to develop a good personal profile, listing your talents, achievements and skills so that other people can read them and make a decision on whether or not to hire you.

You will often find that once you get a few paying clients they will come back to you for more work in the future. While these websites take a small commission for essentially matching clients with freelancers, in the future you will be able to work for them directly, which will make a difference to your profits.

So think about all the skills you could offer to people from home. No matter what they are, you are certain to find someone somewhere who is in dire need of them.

Before you rush off in search of those freelance sites, leave a comment below to tell us what you think of this idea. It could change your life!