Virtual money: first across the divide

Kant once wrote that “A hundred real thalers do not contain the least coin more than a hundred possible thalers.” (Critique of Pure Reason, A599)

These words might have been true in 1781, but at the time I’m writing this, a US dollar is worth 264 Linden dollars. Something unprecedented is going on with virtual currencies.

Kant’s point was to claim that, given a concept, to claim that the object posited by the concept exists is to add nothing to the concept itself. It just describes a particular relationship between the concept and the real world. This seems like a rather academic argument—and it is—but it points out the futility of trying to prove that something exists by armchair reasoning. Kant was specifically targeting Anselm’s ontological argument for the existence of God.

If we were to set about looking for 100 thalers, we wouldn’t have to specify that we’re looking for 100 thalers that exist. The last bit would be taken for granted. So trying to add existence as an additional predicate to the concept of our 100 thalers is pointless, according to Kant.

That would indisputably be the case, if we only ever approached concepts as necessarily referring to objects in the real world. But that’s not true; make-believe is another way that we engage with concepts. A child at play could indeed be searching for 100 thalers that do not exist. I’ve spent a lot of time lately trying to rustle up Gil while playing Final Fantasy XII.

In Kant’s time, the distinction between fiction and non-fiction was clear. But during the twentieth century, mass media allowed fiction to become the jumping-off point for new social realities. Fan communities made the production of entire fictional universes profitable. People began speaking Klingon and invested themselves in social role-playing games.

The social element is key to explaining how virtual currency has broken through to the real world. If I like something, it has value to me, whether it’s real or fictional. If the pool of people who value something is large enough, and trade can occur, than economic forces will come into play. Online role-playing games has allowed the creation of fictional goods that can be traded among massive numbers of people.

It cannot go unremarked that while fictional money has become real, our real money long ago became fictional. With the abolishment of the gold standard and the adoption of fiat currency, our money became nothing but a function of intersubjective perception of value—a move that prepared us to accept the possibility of virtual currencies.

New feature

Instead of link roundup posts, I’ve decided to stream my most recent tech-related links on the sidebar to the right.

This should see quite a bit more activity than the mainbar. Given the subject matter and my actual posting frequency, I’m beginning to think that my initial goal of three posts a week was too optimistic. I can see to it that the links list is updated more or less every workday, and I will continue with my roughly once-per-week posting frequency.