Virtual Trade: Governments need to get real about virtual

By: |
February 20, 2021 6:15 AM

A $1.5-mn virtual ‘property’ deal should offer a cue to govts on the real potential of regulating the virtual world

A classic example of the ‘move to online’ is Fortnite’s Travis Scott concert last year, which saw 12.3 million views for the first show.A classic example of the ‘move to online’ is Fortnite’s Travis Scott concert last year, which saw 12.3 million views for the first show.

Close on the heels of a person buying land on the Moon, someone else has bought virtual ‘property’ for $1.5 million in the crypto-currency, Ether. Last week, a blockchain gaming platform called Axie Infinity recorded this largest-ever sale of virtual property (nine ‘plots’).

This, as per Coin Desk, is also the largest non-fungible token transaction, exceeding the $800,000 spent by Polyient Games for purchase of “the Citadel of the Sun” from Gala Games. To be sure, such purchases are not the norm—at least not yet.

But, as more players, including those that bring a fat purse to back virtual world acquisitions, take to such gaming involving building houses, communities, purchasing artwork and whatnot, expect virtual world valuations of ‘property’ to soar.

With the industry still in its infancy, a lot many gaming platforms and services are also emerging, giving more options to players. A classic example of the ‘move to online’ is Fortnite’s Travis Scott concert last year, which saw 12.3 million views for the first show.

Governments, wary of such rise, are instead looking at ways to ban crypto-currencies that are often used in such trades. With more games coming up and people expected to spend on digital assets, a better idea would be to devise ways to secure people’s money online and also find ways to earn revenue off this. Governments need to get real about virtual.

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