7 Benefits of a Virtual Currency

by Ivan on August 1, 2009

Virtual currency offer many benefits, especially on websites where the users may not have access to credit cards or other types of payments. The role of a virtual currency is to act as a substitute currency allowing customers to buy, sell, and trade items without having to use a real world currency.

1. Acts as a substitute currency allowing customers to buy, sell, and trade items without having to use real world money.

2. Lets children and teenagers buy goods online without the need of using a credit card or disclosing private information

3. Teaches children, tweens, and teenagers the basics of using money, especially in transaction-based scenarios

4. Let’s people who don’t have a credit card engage in online gaming and other websites that use some form of currency, for example, trading virtual goods

5. Allows users to generate ‘revenues’ and create profits online, which can then be exchanged for other goods (real and virtual)

6. Virtual currencies are not taxable, at least not yet. Profits you make online can be converted into real monies without tax deductions. A tax loop hole that is bound to be investigated over the coming years

7. Allows you to make virtual money that can then be converted into real money. An attractive business model for students and others who want to make a living working online

Next week, I’ll look different types of virtual currencies in the US and Asia and see what types of trends are emerging.

Drop me a line if you have any thoughts.

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Ivan Walsh, Internet Business ExpertAbout Ivan Walsh Got a question about running an online business? Contact me on Google Plus, @IvanWalsh, and Facebook

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Kevin August 4, 2009 at 3:05 pm

Thanks for sharing this article. Let me also share an article regarding this.


A short story about how a starving student survived by selling wow gold in spite of negative stigma attached to gold selling.

dangrossman August 11, 2009 at 10:59 am

How is this a tax loophole? However it is you get paid real currency for the profits you made in virtual currency, that payment is income and you have to pay taxes on it.

Patricia September 3, 2009 at 12:49 am

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.



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