Diablo II is a MMORPG (massively multiplayer online role playing game) computer game that came out in 2001. It provides an interesting case study in virtual sporders because it beautifully demonstrates the emergence of money from the market and the impossibility of truly fiat money.

Carl Menger explained the origin of money as a market phenomenon, the unintended consequence of people pursuing their own ends in the market. Money is the result of human action, but not of human design. Here’s how it works: Continue reading →