Amazon coin / Bitcoin parody

[Adrian-x]

Bitcoin's corporate competitor Amazon Coin (AZC- for want of a better name) has launched @ $1US = 100AZC
http://techcrunch.com/2013/05/13/amazon-launches-amazon-coins-virtual-currency-on-kindle-fire-gives-5-in-free-coins-to-all-users/

So here is the speculation, how long will AZC be pegged to Fiat?
Will Amazon inflate the supply faster than the US Fed?
How much AZC will $1 USD buy a year (and 5 years) from now?

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[Mike Christ]

I'm fairly certain it's going to be forever pegged to fiat; it might get cheaper or more expensive if it catches on, but, I doubt they'll ever stop selling it if they can help it.  You're essentially buying store credit; as Amazon coin can only be used to purchase Amazon products (And I believe this is limited to apps and kindle books and digital goods of that sort), it works the same as a gift card.  I don't consider them a money on their own, personally, just fiat in another form.  If they knew what they were doing, they'd keep it on a 1 AZC = 1 Cent ratio, as nobody really wants their gift card to be worth less later on.

[Odalv]

If AZC will grow then we will have next Linden dollar.

EDIT: new way, how to convert fiat into BTC

[mgio]

Amazon is just trying to capitalize on the recent popularity in the news of virtual currencies like Bitcoin.

"Amazon coin" couldn't be more different than Bitcoin. It is really just like a gift card. It is not a currency at all.

Here is what is bad about it:

- You can only use them to buy apps for your Kindle. You can't use them to download music or movies, buy books, or anything physical at amazon.com. They are basically the same as the credits you buy on your Wii or Xbox when you want to purchase games. Or Foodler credits you can use for meals.
- You can't transfer them to other people.
- You can't trade them back for dollars or any other real currency.
- They are completely, 100% controlled by Amazon and probably will always be pegged to the dollar.

The only uniquie thing about them is they are using the word "coin" instead of "credits" or "points" which are more commonly used by merchants who want to trap consumers into buying only their own items and servinces with their money. They are as big a scam as gift cards.

[mgio]

I'm fairly certain it's going to be forever pegged to fiat; it might get cheaper or more expensive if it catches on, but, I doubt they'll ever stop selling it if they can help it.  You're essentially buying store credit; as Amazon coin can only be used to purchase Amazon products (And I believe this is limited to apps and kindle books and digital goods of that sort), it works the same as a gift card.  I don't consider them a money on their own, personally, just fiat in another form.  If they knew what they were doing, they'd keep it on a 1 AZC = 1 Cent ratio, as nobody really wants their gift card to be worth less later on.

You can't even use them to buy books on the kindle! Only apps and in-app purchases!

Oh, and since you can't trade or give them to another person, their price will never change since there can be no market.

[Mike Christ]

You can't even use them to buy books on the kindle! Only apps and in-app purchases!

Oh, and since you can't trade or give them to another person, their price will never change since there can be no market.

Man.  That's it?  Amazon is lame.  This really is an imitation of Microsoft points.

[DeathAndTaxes]

If AZC will grow then we will have next Linden dollar.

EDIT: new way, how to convert fiat into BTC

Nope.  At least Linden dollars is a true virtual currency.  A centrally controlled and issued one but a true currency.

1) AMZ Coins are simply another way of saying $0.01 worth of not tradeable, non-convertable, non-cancellable gift card money.
Nothing more.

2) No form of trading is possible.  No converting back to USD, no trading between user accounts.  Nothing.

[Adrian-x]

- They are completely, 100% controlled by Amazon and probably will always be pegged to the dollar.

So I also thought when I firs collected credit card reward points I could exchange 10000 points for the equivalent of $100 in gift cards, then a few years later, gift cards cost 1200 points and on my latest exchange a few years later its is 1350 points for the same gift card.  (What started out as 1% back is now less?)
It is so tempting for corporations to increase the quantity, as soon as everyone thinks it is pegged, the dollar is about the time when it will change, you would never see it if you exchanged for products, but when you exchange for cash equivalent it is obvious. 

[naypalm]

Wow, a restricted gift card for Apps. Mind Blown.

[ondratra]

Amazon coin is only sort of dividable gift card

There is no real connection to the Bitcoin

[alkuluku]

Wow, a restricted gift card for Apps. Mind Blown.

I guess they count on people buying them thinking they can use the "coins" for any Amazon purchase. Reminds me of the Simpsons episode where they go to Itchy&Scratchy land and Homer buys I&S money at the gate and inside sees "We don't accept I&S money" signs at every booth.

[ElDido]

Do we have one example of a company doing it's own currency and using it for several years ? Could Microsoft point be considered successfull in that regard ?

[Lethn]

Microsoft points are fucking awful because from last I looked ( but this was quite awhile ago ) you had absolutely no choice but to buy these points in order to purchase games and so on, at least with Amazon coins for now they're only an option, these schemes by themselves aren't that big of a deal but when they're limited like crazy the only use they'll have is for what they've been specifically designed for. Take what are essentially game launchers for example steam, they're great ideas by themselves, they organise your game and update things for you automatically but when you put a shit ton of restrictions on them like DRM and force people to log on with an internet connection if you are to have a chance of using it then it becomes too restrictive and pointless to use.

There's nothing I hate more than being told what I can and can't do with my money and with my computer because some programmer is being a cock with their releases, the only way they could make these coins or points legitimate is if you could trade them back for your cash and re-use it but they're just using it to steal your money really.