Below is Part 2 of my series on Virtual Currencies and Bitcoin. You can find Part 1 here.
Brief History of Virtual Currencies Before Bitcoin
Virtual currencies have not only existed for quite some time before Bitcoin, but have been large commercial ventures for over a decade. An in-depth report from Eurogamer traces in-game currency trading back to one of the first multiplayer online games, Ultima Online, first launched in 1997. Although Ultima waned, other MMOs grew over the course of the last decade. With larger player bases and more complicated games, more complex economies naturally arose. Players spending dozens if not hundreds of hours in these games meant that in-game currency could be priced to many hours of labor, in essence creating a huge market where in-game currency had real-world value. Continue reading