Wildcat Currency: How the Virtual Money Revolution Is Transforming the Economy

by Edward Castronova

An intriguing look at the exploding phenomenon of unregulated private currencies and how they will change our economy forever

Private currencies have always existed, from notes printed by individual banks to the S&H Green Stamps to Bitcoin. Today’s economy has seen an explosion of new forms of monetary exchange not created by the federal government. Credit card companies offer points that can be traded in for a variety of goods and services, from airline miles to online store credit. Online game creators have devised new mediums of electronic exchange that turn virtual money into real money. Meanwhile, real money is increasingly going digital, where it competes with  private currencies like Bitcoin. The virtual and the real economic worlds are intermingling more than ever before, raising the possibility that this new money might eventually replace the government-run system of dollars, euros, and yen.

Edward Castronova is the leading researcher in this field, a founder of scholarly online game studies and an expert on the economies of virtual worlds. In this dynamic and essential work, he explores the current phenomenon of virtual currencies and what it will mean legally, politically, and economically in the future. In doing so, he provides a fascinating, often surprising discourse on the meaning of money itself—what it is, what we think it is, and how we relate to it on an emotional level.

Genres: Economics, Business, Nonfiction

265 pages, Hardcover

First published January 1, 2014

About the author

Edward Castronova is Professor of Communications and Professor of Cognitive Science at Indiana University. He is the author of Synthetic Worlds: The Business and Culture of Online Games and Exodus to the Virtual World: How Online Fun Is Changing Reality.

Reviews

[Kate · Rating 5 out of 5]

Wildcat Currency is an outstanding read! I have been very interested in learning more about cryptocurrency, and Wildcat Currency provides a very through overview of the history of money in the United States. Alternate forms of currency have been around for a longtime such as frequent flyer miles, online store credit, and green stamps. Castronova explores important considerations that may arise out of creation of numerous private curriences. These considerations involve the difficulty of auditing, taxing, and valuing companies that have their own private currency and switch currencies frequently.

[J Brown · Rating 4 out of 5]

This was an interesting read. The book began about bitcoin and other virtual currencies. Then it became more about the online gaming communities. It has some good descriptions about the evolution of virtual communities. It also a programmers perspective about what the actual lines are concerning reality and the virtual "circle of magic".

[Joe Nickence · Rating 5 out of 5]

Spot On.

Mr. Caatronova once again hits the nail on the head with this current economic dilemma. It's easy to disseminate the pratfalls that have developed in the last decades. The question is, can there be a solution all can agree on?

[David Stancel · Rating 4 out of 5]

The first half of the book is especially interesting as it deals with various virtual currencies in different games and apps. Though the book does not elaborate on cryptocurrencies, and when it does it is usually with factual incorrectness and misunderstanding. The last chapter brings up interesting issues of regulation of not only these currencies but also economies as well. Overall a nice intro into gaming worlds and their ecosystem and economics.

[David Barrie · Rating 1 out of 5]

Virtual currencies offer a tantalizing New World Order of peer-to-peer payment and have profound political and cultural implications, such as an end to single currencies and trade blocs as drivers, or stabilizers, of political union. Also, there's the small, brilliant, paradigm-shifting matter of the possibility of transmitting wealth between individuals and organizations away from Government. Castronova's book would be so much more interesting if he addressed these things in a concerted way, but he doesn't. I guess it awaits either a breakthrough corporate success story, or an all-mighty scandal involving a bad actor.

[Katrina Knittle · Rating 4 out of 5]

Goodreads. Will read and review once received.

This was a great read. I loved how this book showed a great overview of the history of money in the US. This was a very thought provoking book. The author explored the some very good points that could come up out of the making of many different private curriences. A good read, especially if you don't know much about this subject.

[James · Rating 5 out of 5]

Fantastic read to better understand our current currency system. A must read for anyone who wants to have a better understanding of how to make money. Won via Goodreads Giveaway.