They say money makes the world turn, and it’s also true for the virtual world.
Without it, you cannot buy any of the multitudes of items that are available.
No one thought of virtual currency thirty years ago and here we are today, with dozens of representations and websites beckoning to us.
When the trend started, we understood virtual currency had to do with cash back sites.
These allowed you to shop and gain various benefits or points, from merchants.
Virtual Currency Websites
The virtual currency sites progressed and became different from cashback websites.
On these websites, you received points rather than cash. And then, they allowed you to trade those points for prizes, tickets, gift cards and a myriad of other rewards.
Now websites like Swagbucks and MyPoints are true representatives of this practice.
They allow you to earn points in a variety of ways, not just after you shopped with a merchant.
When you invite friends and they sign up with the website, you earn free points. You can also earn more points by clicking on ads in email advertisements and visit the websites of their sponsors.
You can also earn more free points by watching videos, completing surveys, finding hidden codes and completing various profile questions.
Facebook has a similar makeup.
What are Facebook Credits?
The social networking giant has reversed the method of virtual currency.
Instead, online consumers buy Facebook Credits with real cash and this allows you to complete or engage with different applications on their portals.
Around 2009 to 2010, Facebook tested the Credit system. Soon after they made game builders retrofit their games to accept Facebook Credit payments rather than other currency.
This was in effect by July 1, 2011.
With one US dollar, you can buy 10 Facebook Credits.
But the Credits became available in not only US dollars, but 15 other currencies.
Once purchased, users could make Facebook payments.
They retrieved items associated with non-gaming, gaming and other applications exclusive to Facebook. Many believed Facebook would then merge this into a micro-payment system, which would govern transactions on all their applications.
But this was not the case.
Instead, people will conduct Facebook payments with their local currency.
How Did Facebook Make Their Money from This System?
30% of the revenue generated by Facebook Credits went to the social network giant.
Application developers kept the remaining 70%.
This system was so popular PayPal became anxious about its popularity.
Being the top agent for virtual payments, PayPal discussed the possibilities of losing their status to Facebook. With over one billion users, this was a real and threatening possibility.
For over five years the system was in effect.
Users purchased Facebook Credits for virtual goods, available on the network. However, even though a Facebook Payments Inc. subsidiary came on stream. in March 2011, by June 2012. the Credits system was no more.
An announcement came and users got back their currency equivalent.
By September 2013, every trace of Facebook Credits disappeared.
The Popularity of Facebook Credits
Over 650 Facebook games required that users purchase through the Credit system. All the top games, such as Bejeweled Blitz, CrowdStar, Farmville and FrontierVille required Credits.
This represented more than 705 of virtual currency transactions occurring on the site.
Facebook game cards were even available in brick and mortar stores. If you shopped at Safeway, GameStop, Radio Shack, Best Buy, Wal-Mart and Target you could purchase a Facebook Credits gift card.
Tesco, in the UK, sold Facebook cards as well.
When combined New Zealand, Australia, India, and other Southeast Asian countries had over 500,000 separate locations that sold Facebook game cards
The Future of Virtual Currency
Virtual currency has exploded since the inception of old virtual currency model on cashback sites.
Facebook pay is no longer the hot topic.
Now we have numerous cryptocurrencies. There are over 25 top virtual currencies that are in circulation.
They include Bitcoin, Bitcoin Gold, Bitcoin Cash, Binance Coin, Ethereum, Ripple, Litecoin, EOS, Cardano, Stellar, IOTA, NEO, Monero, NEM, Dash, TRON, Tether, VeChain, Ethereum Classic, Qtum, OmiseGo, ICON, Lisk, Ontology and Verge.
These digital assets caused quite a stir in the financial world as policymakers scurry to try and regulate them.
Cryptocurrencies are a natural progression and lend itself to the hidden agenda of world powers, which is ultimately a single world currency.
Soon we will no longer be using paper money to conduct majority of our transactions but online payments. At this moment, in the US, stores accept virtual payments via Smartphones, for example, PayPal and Wal-Mart Pay.
In China, entire communities and business sectors only accept virtual methods of payment.
What was once a far-fetched idea, virtual currency, is now an ever-prevalent reality.
Governments and finance sectors have little time to gear themselves up and retrofit the old institutions to compete on a more futuristic playground.