In the past few weeks, I am sure you have heard lots of news about Bitcoin, Amazon Coins and the like. It appears that in the future we may not need tangible dollars and cents to buy our clothing!
I was on the phone the other day with a girlfriend talking about virtual currency and value exchange. As I have discussed in the past, I am a big believer in value exchange in terms of digital marketing and getting your message in front of your consumers and I really see the value in virtual currency.
That said, what many people don’t seem to know is that virtual currency actually has real world value.
Think about it.
When buying Kindle Fire game apps or making in-app purchases on Amazon, you can now use Amazon Coins instead of your credit card to finalize that purchase.
And while at first Amazon is giving some of that away, in the long run, consumers are going to have to purchase or earn that currency like any other virtual currency including air miles, credit card points or Farm Cash.
At one point, Facebook even launched their own currency called Facebook Credits.
So, what is the point of all of this digital currency?
First, it allows the creditor a direct connection with the consumer as the consumer racks up credits or points. It also makes consumers more loyal to that particular brand as they are now invested in earning more of their favorite brand’s virtual currency.
If you play FarmVille, aren’t you going to keep playing in the hopes of earning more Farm Cash? Do you have a favorite airline or credit card that you use in order to rack up miles or points? I know I do.
Virtual currency also has no borders. Amazon Coins will likely be accepted globally over time (though it is currently only available in the US).
It also makes the purchase process simple and seamless. No worrying about entering credit card information or concerning yourself with your credit limit. If you have enough Amazon Coins, you are all set to make a purchase.
And over time, it is speculated that virtual currency like Amazon Coins and Facebook Credits will be redeemable for tangible items just like you airline miles currently are.
Do you have any thoughts regarding digital currency? Like it? Hate it? Tell us your opinion in the Comments.