(Virtually)Printing Money

The following are articles that discuss the explosive growth of Facebook Credits virtual currency.

Inside Social Games has an excellent article about Facebook making a serious push to get social game players to purchase Facebook Credits virtual currency in 2011. From the article:

” Facebook, then, seems to have prioritized moving all direct payments over to Credits before messing with the variety of alternative payment options. That progression allows it to get Credits in front of the bulk of paying users while giving developers more flexibility around the switch. “

The Independent offers additional perspective on Facebook Credits.

” But some analysts believe the growth of this could become far wider if Facebook created more of its own games. Some predict that eventually Facebook credits could become currency to buy actual real-world products via the Facebook network. ”

SFGate discusses Facebook’s recent 50 Billion valuation within the context of Facebook Credits “tax”.

” Unlike Google or Microsoft, Facebook won’t have to figure out how to diversify its revenue. It just has to sit back and wait for the next Zynga or Groupon, design a way to tax that business (the way it suddenly sprouted Facebook Credits when Zynga got huge), and profit from the tax. ”

AllFacebook discusses forecast that project Facebook Credits eventually(potentially) generating $8 Billion a year.

” That’s exactly what Albert Babayev over at Seeking Alpha has concluded, after developing a model based on the future projections of Facebook revenue, with him expecting Facebook Credits to eventually become an $8 billion a year business. :

Reuters discusses TapJoy’s alternative ads for virtual currency model and the potential impact of Facebook Credits.

” Facebook plans to migrate its entire system over to Facebook Credits, an official virtual currency for all the applications running on the social network. But that hasn’t happened just yet, leading Tapjoy to bring in its best month of virtual currency transactions yet in December, Jessup said. Tapjoy is already prepared for the upcoming switch over to Facebook Credits, and is used on a number of other social networking sites like MySpace and Yahoo. “

 Learn more about the virtual currency industry at VirtualCurrencyNews.com

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Filed under Facebook, Facebook Credits, FarmVille, gaming, social games, Virtual Currency, virtual goods, Zynga

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