A virtual economy refers to the system of buying, selling, and trading goods and services that exist in digital environments, such as video games or online platforms. In these economies, players or users can earn virtual currencies, like in-game coins or cryptocurrencies, which they can use to purchase items, upgrades, or even real-world products. These economies often mimic real-world economic principles, such as supply and demand, but operate within a closed system. For example, in games like Fortnite or World of Warcraft, players can trade rare items, creating a marketplace that can influence the value of virtual goods based on their popularity and scarcity.