The Addiction of Virtual Currency

Virtual currency (never exist)


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A recent release by the European Central Bank will serve as a basis for properly defining the phrase "virtual currencies." In order to define the term and the scope of virtual currency in the e-economy as well as the real world, this study compiles the most recent research on the subject. Virtual currency is categorised as a form of exchange that has been formed within a virtual community by the European Central Bank. All participants in the virtual community are willing to accept this form of payment, which is managed by the community's creators.

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Two methods of obtaining the virtual currency can be distinguished, one of which is by exchanging conventional currency into the specific virtual currency at a predetermined exchange rate, to further categorise the features of virtual currency. The alternative method is to earn virtual currency in a lighthearted manner by performing chores like completing surveys, providing game reviews, or agreeing to additional in-game advertisements in exchange for virtual currency. These two superior classes are essential to comprehending the case studies that will be examined in the next main chapter's revenue models. to better comprehend what the European Central Bank refers to as virtual currency schemes.

There are three main differences:

(1) Discontinued virtual currency programme

(2) Virtual money schemes that only flow in one direction

(3) Bidirectional virtual currency schemes

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These definitions need to serve as a firm foundation for comprehending the types of virtual money and conducting research on the case studies related to the thesis's subject. If these plans are adequate to take hold of the virtual money in online gaming, it will be of particular interest to further the efforts previously done on the subject.


Role in online Gaming

As was said in the chapter's introduction, the online gaming industry is a quickly expanding field with constantly evolving trends. As a result, all that can be provided is a reflection of the current online gaming categories. The connection to the internet that must be created whenever playing the game is a requirement that the word "online" brings to our attention. Through this link, the user can engage in the real-time interaction that distinguishes the games and contributes to their special value for the player. The online connection is essential when virtual currency is involved.Online games can be divided into four categories:
Online games for one player and multiple players are listed first.
Social network games massively multiplayer online games
The first three definitions describe the number of players who participate in the game and the potential for the game state to evolve—from one player in single-player online games to millions in massively multiplayer online games , from website access to the potential for the creation of entire worlds within the games. The fourth category of social networks, such as Facebook, describes games that are integrated into the overall social network experience. Naturally, this classification of online gaming is only able to scratch the surface of a description.An investigation must be conducted from case to case in order to fully understand the characteristics. In the course of this thesis, for instance, we'll observe mixed forms that arise both as mobile phone applications and in the milieu of social networks. These programmes, like the ones used on a PC, laptop, or netbook, also need an internet connection and may have the same, less, or more functions. Since the categories above initially only included the latter, I would like to expand the definition to include any (mobile) device that supports playing online games and provides access to the internet.When you take the rate at which game applications are downloaded, the number of mobile games played daily is rising. The varieties of online games must therefore be expanded to include the whole range of (mobile) online devices. Every game runs on a distinct platform. As a result, each unique technical feature must be described in detail.

Logic Behind this All

When examining virtual currencies in online games from an economic perspective, it's critical to choose approaches that serve to expose the topic's economic underpinnings and provide straightforward access to it and its workings. My focus is on the platform types and business models that create the various virtual currencies used in online games in order to determine their potentials, chances, and risks for the partners involved in the online gaming ecosystem. This has previously been covered in the previous chapters.
There will be two steps in the study. I'll start by taking into consideration four case studies, which I'll look at from various angles. An summary of each case will be provided, together with an explanation of the platform type, to provide a strong foundation for this research. In a subsequent phase, I will use the support of the chosen literature to draw conclusions from these findings and interpret them in light of my research topic.
Case studies are the best approach to take since they provide a thorough insight of organisational processes "due to the comprehensive data gathering in context". This approach is excellent for gaining the necessary context and understanding of the subject. Following discussions with this master thesis's supervisors, the case studies were ultimately selected.

Virtual currencies, such as Bitcoin and Ethereum, have become increasingly popular in recent years. However, with the rise of virtual currency usage, there has also been a growing concern about the potential for addiction.

Virtual currency addiction can be defined as an excessive use of virtual currencies that results in negative consequences, such as financial loss, job loss, and strained relationships. The addiction can be triggered by the thrill of the potential for high returns on investments, as well as the anonymity and decentralization that virtual currencies offer.

One of the major concerns with virtual currency addiction is the lack of regulation and oversight. Unlike traditional forms of investment, virtual currencies are not backed by any government or central authority. This makes them highly volatile and unpredictable, leading to the potential for large financial losses. Additionally, virtual currencies can be easily bought and sold on decentralized exchanges, making it easy for individuals to access and invest in them.

Another concern is that virtual currency addiction can lead to compulsive behavior and impulsive decision-making. Some individuals may feel compelled to constantly check the value of their virtual currency investments and make impulsive trades based on short-term market fluctuations. This can lead to financial losses and an inability to make rational decisions.

To avoid virtual currency addiction, it's important to set clear boundaries and invest only what you can afford to lose. It's also important to educate yourself about the risks associated with virtual currency and to seek help if you feel that your virtual currency use is becoming problematic.

In conclusion, virtual currency addiction is a growing concern that can result in negative consequences such as financial loss, job loss, and strained relationships. It's important to set clear boundaries, invest only what you can afford to lose, educate yourself about the risks associated with virtual currency, and seek help if you feel that your virtual currency use is becoming problematic.



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