 Hi, this is Gerhard Leonhard, Media Futurist in Basel, Switzerland, with another edition of Gertube Today about the future of money What's happening with money clearly is that because of the internet all of a sudden we're looking at many more options of How we can pay for stuff in the future? This is crucial because money actually isn't a good instrument for lots of people to pay for virtual goods And what they do on the web. Of course, we have PayPal, we have credit cards and so on But now we're looking at a slew of new kind of alternative Currencies including as you can see on this slide Facebook money and why does Facebook money make a difference? Well, the difference is first I can earn Facebook money on Facebook by getting Presence from others. I can earn money. This is just now being started by Facebook For example, if I like a brand they could actually send me Facebook credits if I upload lots of movies that are mine I can earn credits if I'm really active on Facebook I can earn credits and I can turn those credits around to buy real-life stuff including movie tickets airline tickets Downloads and so on so the Facebook currency essentially becomes like a virtual country I mean if you're looking in general, of course Facebook is the third largest country in the world China and India are the first two largest countries in the world and then Facebook is the third largest country So if Facebook has a currency called Facebook credits and you can expect that to be an extremely powerful tool For people to exchange services for example, you can imagine we used to joke about this as musicians You know five years ago or three years ago Can you pay your landlord, you know for for the rental with Facebook money? Well in two years you can and you can pay real-life people you can pay gas for your car with Facebook credits You can convert them you can earn them you can buy them you can exchange them So this kind of currency system really creates a big difference because also it's international It doesn't have the same sort of fee structure at PayPal. It's becoming sort of the A Compliant structure that we have all agreed on. Here's another page that shows you basically what's happening in terms of paying with the tension People are getting paid to treat for example as a bar in Cologne, Germany But if you tweet about them they give you a free beer All right, so there is a currency there that's in development, which is a tension right the more I pay attention I can get paid to do this there are currencies like a jingle and flatter that if I push a button Then the blogger gets a piece of my money and these are our business models We're going to see for producers for musicians for writers and so on to put a button a simple button on your web page Or your mobile page and if I like what you do then a piece of my money goes towards you The same goes for farm really I hope you don't know a farm Well because very addictive Facebook game made 350 million dollars last year people buying virtual tractors to essentially do to plow the virtual field on Farmville, right? so Network mobile social currencies are with us in last year already six billion dollars was was purchased as For virtual bullets like virtual flowers and gift cards and so on this page shows you the what's happening in mobile money Nokia is of course very big and more mobile money in Asia and the combination of all these things So we're going to see new kinds of monies Coming up both on social networks probably every single social network will have their own currency To be paid and to pay people and this will be very important because I think in many ways Real-life money and banks have had the heyday and are beyond their their peak So these kind of ideas are very very powerful. You should investigate it if you're into retail How people can pay you and how you can get paid and how you can generate value? I think it's very important the last slide shows you an example of Facebook credits Which is an easy way to buy stuff on Facebook Translates of course into dollars the same goes for Cyworld to have their own money There's a slide here talking about the average number of virtual transactions, which will be very interesting to see How people this is from 2009 from Kleiner Perkins and from Mary Meeker showing how people buy stuff in game currency Like you can buy stuff to play a game. You can subscribe to codes. You can buy weapons for virtual games You know, this is a huge business that's just now unfolding, especially on things like the iPad So imagine you're sitting down to play a game on the iPad and it's a really cool game You bought it or you downloaded for free But at a certain point it says you know what if you spend five of your Facebook credits You can buy a faster car or you can compete with somebody in Australia who's built their own car You can buy it for him for five dollars, right? These kind of things are all going to happen That's a huge amount of virtual transactions and currencies coming away great business models for the future And finally, I think this is also how Twitter will be paid for there's a hundred sixty million people now Twittering Using Twitter. I think there's a great commercial mechanism for micro currencies and payments and also of course for appetite So the future of money will be fragmented in many different ways will not just be paid through credit cards and cash and PayPal and so But in many different ways The future of money is right with us. Thanks very much for listening and come to mediafuturist.com for more videos