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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