Abstract: From the background of the dramatically developed network economy, the increased circulation of virtual money arouses the attention of scholars and netizen, especially its influences on the real world. First, this article analyzes the definition of virtual money and the real effect of virtual money on the process of trade. Following that, the characteristics of the virtual money, especially its special equilibrium price curve are obtained. Then the business model of virtual money is investigated using the game theory. The article analyzes the availability of its exchange. Finally, it is concluded that virtual money causes the development of network industry as a successful business mode. Though it has not formed a mature currency system, the market has the powerful motivation to break the high barrier between bidirectional exchanges in different kinds of virtual money.

Key words: virtualcurrency, exchange, transaction, networkeconomy, gametheory