A virtual asset is a digital representation of value that can be digitally traded, or transferred, and can be used for payment or investment purposes.
A virtual asset is a representation of currency in some environment or situation. In this context, currency can be defined as either a medium of exchange or a property that has value in a specific environment, such as a video game or a financial trading simulation exercise.
One of the most prominent technological developments in the last decade has been the launching of Virtual Assets (VAs) which are in a form of decentralized digital currency or virtual currency. Examples of Virtual Assets are cryptocurrencies such as bitcoins.
Virtual currency is a type of unregulated digital currency that is only available in electronic form. It is stored and transacted only through designated software, mobile or computer applications, or through dedicated digital wallets, and the transactions occur over the internet through secure, dedicated networks.
A virtual asset is a representation of currency in some environment or situation. In this context, currency can be defined as either a medium of exchange or a property that has value in a specific environment, such as a video game or a financial trading simulation exercise. Monetary virtual assets are often called virtual currency.
Virtual assets may have an equivalent value in real world money. In Second Life, the popular 3-D virtual world, the currency is the Linden dollar (SLD), which characters use in all the familiar ways we use money in the real world. As of late March 2007, the Linden dollar was trading at an exchange rate of 267.97 against the United States dollar (USD). The company behind Second Life, Linden Labs, maintains an exchange called the "LindeX" which is reported to process approximately $230,000 (USD) in currency exchanges on a daily basis.
Virtual asset trading can lead to real-world fortunes. A Wired News article ('Virtual Cash Breeds Real Greed') quotes trader Kenneth Michael Merrill: "What I love the most -- and the idea that gives me chills -- is that I am buying nothing, and then selling nothing, for a profit." In 2006, Ailin Graef became the first real-world millionaire from dealing in virtual assets. Through her atavar, Anshe Chung, Graef grew an initial $9.95 investment into an equivalent $1 million (USD) in Linden dollars and other virtual assets, including shopping malls, chain stores and business investments.