{"id":11676,"date":"2022-06-18T18:44:12","date_gmt":"2022-06-18T18:44:12","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/metaverse\/understanding-what-makes-virtual-items-valuable\/"},"modified":"2022-06-18T18:44:13","modified_gmt":"2022-06-18T18:44:13","slug":"understanding-what-makes-virtual-items-valuable","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/metaverse\/understanding-what-makes-virtual-items-valuable\/","title":{"rendered":"Understanding What Makes Virtual Items Valuable"},"content":{"rendered":"
Why do virtual items have value? This is a question that I\u2019ve heard asked countless times by people who can\u2019t seem to grasp why somebody would spend $20,000 on a plot of <\/span>virtual land<\/span> or $2,000 on a set of virtual armor. For these people, the concept of spending real money on intangible things sounds ludicrous, but to somebody who grew up playing video games with algorithmic scarcity it kind of makes sense. Let me explain\u2026<\/span><\/p>\n Scarcity is undoubtedly an important factor in assigning value to virtual items. For example, when Diamonds were some of the least common raw materials in the video game Minecraft, they were also some of the most valuable.<\/span><\/p>\n Diamonds were often used as a store of value by players in online multiplayer Minecraft servers<\/strong> who would treat them like treasure and hoard them in hidden chests. Occasionally, diamonds were used as a medium of exchange when players traded them for other scarce in-game items. I refer to this period in Minecraft\u2019s history as the \u201cage of the diamond standard.\u201d<\/p>\nScarcity<\/b><\/h4>\n