Bitcoin Forum

http://www.marketwatch.com/story/could-amazon-run-central-banks-out-of-business-2013-02-13

These articles are more and more ridicolous

Next on the news:

Could Carrots replace the Dollar?

If you can buy Tide and Tulips on Amazon, does that make it a multi-currency exchange?

Only if you can then sell the Tide and Tulips back for Ama-coins  ;D

No.

Next question please.

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PS.
I think that this situation is quite useful for Bitcoin for 2 reasons.

1. It disperses attention of governments & banks so that they now could go after two targets (even if amazon coin is not really a threat, they may spend some time getting to it).
2. It may pave the way for all alternative currencies into the current system

I wonder if Amazon will take this "coin thing" further, making it a real currency, not just a gift card system.

Even though the article has a lot of fail to it, it's great to have more publicity on alternative currencies. First, no one even wanted to talk about it, then the publicity was all negative or condescending, and now even mainstream economists are talking about them somewhat nuetrality. This is a good thing.

For the sake of argument, Amazon could be quite effective in displacing fiat if they desired. Let's say that they acted as a central bank and operated an exchange. They let the currency float, but guarantee a minimum value in USD that they will exchange their coins for. They set up ridiculously easy ways to transfer quickly between individuals and businesses through mobile apps, credit cards, etc. Convince people to buy Amazon bucks before making a purchase by giving some sort of discount in terms of USD, but only from bank accounts, not credit cards. Also price everything sold by Amazon with a slightly lower price in terms of AmazonCoins. The savings for Amazon comes from not having to deal with credit card fees, chargebacks, reduced fraud, etc. They also become even more competitive by cutting out the middleman. Then with the minimum exchange rate, their suppliers don't mind taking coins, and perhaps will even pay their employees with those coins. Circulation could potentially happen.

Of course, Amazon has to manage everything perfectly, and somehow get away with pissing off first the credit card companies and then the Federal Reserve. And somehow avoid state and federal taxes from this scheme. And convince people that they can centrally manage a currency better than central banks. (The truth is that they could, but sadly, the average person has more faith in the Fed when it comes to money)

Although the guy didn't really look into the differences between the various virtual currencies, I liked his conclusion a lot, especially on a site like MarketWatch:

Lol, investing in amazon points surely will be profitable :facepalm:

This is so stupid. When will the media stop jerking off about amazon coins, IT'S NOT A CURRENCY.

piper, could you please post a little less news?
the whole article isnt about bitcoin at all and amazoncoins arent even a currency. it gets very hard to distinguish noise from signal in this forum lately.

Bitcoin is mentioned on MarketWatch with the advice to invest in it. I think that is relevant. I agree with the articles based on blog posts though.

Actually that would make more sense.  This is more like "Could US dollar denominated gift cards bought only with US dollars replace the US central bank (which prints US dollars*)?".  



* well technically Federal Reserve Notes.

But Amazon says it's a currency!  ::)

It really is baffling where all this hype is coming from.

Q. A. No.

Q. Could a president of USA or a leader of another nation run central banks out of business?
A. Maybe, but unlikely.

History tells us that at least on two occasions presidents of USA were able to temporarily "run central banks out of business" and that only in USA. However, those presidents were quickly pushed out of the game via assassinations or otherwise. Some of those who have tried "to run central banks out of business" were assassinated for this. JFK, Hussein, Nicholas II, Faddafi would be some examples of that. No, Amazon stands no chance here. It would be up to the People.

With Bitcoin it is more complicated. Who would the bankers assassinate to keep their usurious ways? Streisand perhaps?

My understanding was that the test was a mention of Bitcoin, not that the article itself should BE about Bitcoin.

Also, as mentioned before, these posts emanate from Zite, which gathers articles from a number of sources, including blog posts, and presents them as news. In today's environment, I'm not sure one would qualify as news more than any other.

But sure, I'll post less, no skin off my nose. I thought more was better, but perhaps not.

Cheers

you guys are all really missing the big picture here. could amazon rise up and overtake the dollar in its current hegemonic state, no. But the us is killing its own dollar and something will need to fill that void. In reality many different systems will probably be utelized, local currencies will probably be used to an extent as well as silver gold and systems like bitcoin and yes large corporations would likely monetize their own credit. (we already see this to a small extent with sky miles) Surely its reasonably likely that under such conditions walmart points could at-least be a serious contender for predominate currency in large portions of the world.

These articles are great, and also getting more ridiculous. It is great to see people waking up and thinking about what a hegemonic monetary system we have lived with all these years (and the damages it has wrought). They are ridiculous because it sounds like the gibberish people say when they first wake up also.

Just waiting for the inevitable

"Amazon Coins are a Ponzi Scheme"

article. I mean if bitcoins are a Ponzi, Amazon is ponzi^2 ... virtual ponzi credits based on gov. ponzi credits. :)

Naw, ponzi detection works like this:

Does it have to do with money?

If no: END
If yes:

Have I heard of it a few times?

If yes: END
If no: PONZI

Isn't stuff like Amazon Coins serving to effectively increase monetary inflation?  I mean, if I have $1000 of Amazon coins, and I give $1000 to Amazon for those coins, then suddenly, there's $2000 of purchasing power.  I can purchase things from Amazon, and they can purchase things from whoever.

It's a strange form of debt I guess.  I let Amazon take out an interest-free loan from me with the promise to repay me in goods of equivalent value whenever I like.

Yep and it is quite a bit like how a bank works, sans 'interest' paid on deposits.

I'm waiting for the fireworks when the banksters start defending their turf from likes of Amazon, Google, Apple and Facebook for when they try to become banks, issuing their own monies, holding deposits and etc... it's gonna be great showdown! and the polictico whores will be prostrating themselves this way and that, changing the rules, switching sides, should be a good sh1t fight ... hopefully they'll all be distracted enough with their monetary power struggles that bitcoin will stay in the "Too Hard" basket ... and we can get on with gobbling up market share.

Bitcoin has opened up pandora's box and there is no closing it now, a period of massive monetary confusion is now upon us, opportunity and danger abounds.  :D

Monetary Freedom (http://www.monetaryfreedom.org/) is a most basic of human rights.

yep thats why im calling it for what it is. Self issued credit.

Maybe amazon is a full reserve bank for the purpose of amazon coins.

sure they are. its easy when you are backing your coins with non-scarce, non-rivalrous goods i.e. intellectual "property"