The proprietors of Gaia Online, a teen virtual world portal,looked down from their digital perch and noticed that supply-"S" was shifting to S'or S-prime. Time to take action, so they just named economist Michael Boskin of the Hoover Institution to their advisory board, according to news.com. He will chair the board of economic advisors. Google also recently added a UC-Berkeley transaction-cost economics professor, who specializes in the dynamics of virtual markets, as Chief Economist. We talked to him a few times in our first start-up,which had bid/ask auction components for the supply chain.
Why is this happening? Because the share of purely digital transactions is growing -imaginary or conceptual goods that are acquired with digital currency that is pegged, however, to real currencies like the dollar and euro in a determined exchange rate. Will the traditional currencies go the way of the gold standard? Instead of 'free silver' will it be free digital tokens, or unlimited scrip?
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