What is BitShares? How does it relate to the rest of the world’s currencies? These are questions I’ve been asked a lot. Well, when I first heard about it I thought it was going to be like World of Warcraft (and soon, I know you thought the same thing). WoW allowed players to trade virtual gold for items from other players in the game and then sell these items for real money in the auction house. The concept was basically similar but it didn’t work well with a P2P model so it eventually died out.
In the meantime, a few people figured out how to use the popular cryptocurrency Bitcoin to actually create a decentralized e-currency where everyone gets to participate in it, not just a few individuals. It’s called BitShares and is also similar to WoW in that they have to do business through a centralized exchange like the ones used by many of the world’s major banks. But instead of banking executives, it’s the developers themselves who are centralizing the entire system. Many people have been skeptical of this because it seems to promote a new class of wealth owners, the people who are “distributed” meaning they have control over vast amounts of BitShares and can make millions on the market at any given time. This is what has drawn the attention of many from all over the world.
The main difference between BitShares and WoW is that in WoW each player can own a certain amount of virtual gold and trade it back and forth with each other. This is how gold has always been used in P2P games, but the concept is different in that each of the characters doesn’t have his or her own identity. If one dies the other character can come back from the dead. With BitShares though, it’s all about buying a share of the company, or the “democratization of wealth.” This is a concept that will eventually become very important to the modern day marketplace.