While at the Web 2.0 Expo in San Francisco, Max Levchin of Slide.com gave a keynote interview. In it he mentioned his excitement at the market potential for virtual goods. That is goods bought and used strictly online. For example, a virtual leather couch for your virtual room, so you can impress your online friends. To see an example, check out Cyworld or Second Life. Jeremy Liew of Lightspeed VP has expressed his interest in the market on many occasions.
However, there are many who are cynical of the frivolousness of the virtual goods market. Many are criticizing the act of turning real money into virtual goods and stating that it is counter-intuitive to society. I actually argue much the opposite. Frivolousness and discretionary spending is a part of human nature. The Internet has not changed that. People buy more than one pair of sunglasses, custom rims for their car, and fill their house with designer furniture. If you think about where all this stuff comes from and goes, you will realize the environmental and economical impact that all of this stuff has on our society. So, channeling even a percentage of that spending into goods that have virtually zero impact could actually reduce the frivolousness cost on our economy and environment. I think the U.S. is still early on the adoption curve, but I am hopeful for what this may mean for reducing waste in our country.
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