Three reasons why Amazon coins set off my alarm bells: company stores, frequent-flier miles, and Zynga zCoins. There could be benefits to this virtual currency due to ship in May, but so far I'd rather use real money.
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- I still have some Linden Dollars in Second Life. These days the only virtual currency I trust is World of Warcraft Gold which I only earn in-game.Feb 7, 2013
- If you keep writing articles about the obvious uselessness of amazon credits you won't be getting Christmas cards from Jeff anymore. Why can't you be like the nice people over at Forbes and just write puff pieces extolling the synergistic benefits to the consumer that almost money you can spend with only one company will bring.Feb 7, 2013
- Feb 7, 2013
- If you lose your wallet, you lose your money. For Bitcoin you need private keys that are stored in what they call "a wallet". If someone gets access to the wallet, they can do with it what you can do.
There are a number of easy solutions. Like not putting your keys on your computer, but on a device which isn't connected to the internet. And only keep one key (with minimum cash on it) to do daily transactions.
In short, security isn't a problem. If you watch out, it can be far more secure than real money. You also don't walk on the street with €500 notes coming out of your pockets.
For the other things, you are right. That's why I don't use it yet. The relevance and faith both influence the value of a bitcoin. It could be said about normal currency too, but the userbase of bitcoin is still smaller.
And the liquidity, indeed, I don't use it as not a lot of people accept it yet.Feb 7, 2013
- Money is whatever people will always take in trade.Feb 7, 2013
- I think "always" is too restrictive. Plenty of monetary instruments are only accepted by some people. Back in the old days of the US, when different banks printed their own dollars, the value of each diminished as you got farther away from the bank because people were less likely to accept it. Today people might not take a personal check (they can't die off soon enough in my opinion, except that the banks seem to be interested in adding transaction fees to routine electronic transfers). When I was in Russia in 1995 and the ruble was in the dumps, you could use US dollars but only in some places. But your point is well taken -- defining what is money is like defining what is English. It's what people do that defines it, not what some legislation or definition says.Feb 8, 2013