When the internet first started to develop, some entrepreneurs decided that there should be a currency just for online transactions. It made sense. People didn’t trust conducting transactions on the web and, of course, cash wouldn’t work.
Internet currencies, like Flooz and Beenz, were introduced. And dot-bombed.
Despite good intention and good ideas, online currencies never were adopted.
So that’s the end of the story, right? Not according to an article from Wired.
New currencies are starting to bubble up again. One currency is based on wireless phone minutes. Technology is literally becoming a currency. With less faith in paper currencies and a lack of malleability and portability of other forms of currency (gold and precious metals), a new currency–or new currencies–are more possible. In tightly controlled economies (China), new currencies will find a ready market, too.
And, if technology can create a currency, it can create technology to trade this currency.
Could we start trading markets for phone minutes? How about computer processing time? How about using currencies from virtual games for the real world?
The ability to create and trade markets is endless.
That brings up more questions!
If the Forex market is a $3 trillion a day market, what would be the size of these new currencies?
Automated Trading is market agnostic. If there is something that can be traded and it develops a pattern, there’s no reason why a trading strategy can’t be developed to trade a new currency.
Does that mean Online Investing AI will create trading strategies for Chinese internet gaming currencies?
I’m not sure we’re ready to delve into trading strategies for online game currencies, or mobile phone minute markets, but, in the future, financial service companies must be ready to recognize just how expansive and elastic new markets will be.