You ever have an idea hit you in the head like a shovel in the shower? Well I did this morning. I am sure this thought has been had by many before me so I doubt I am breaking new ground with my random shower epiphany. So my thought was as follows. What if a company like say, Amazon, Google and maybe Walmart, created and controlled their own cryptocurrency? They ran an exchange and set and maintained exchange rates for this currency to be used on their products and services. Running it in full compliance with all governmental laws, tax codes and statutes. What would the effects on the other decentralized currencies? These currencies would have some sense of a backup value, like a fiat, but still like in the crypto space. Not just any company could do this, it would have to be companies like the ones that I listed, that have revenues that are equivalent to GDP's of small countries. This would give them the ability to exert massive influence and control over exchange rates and market supply of their currency.
If Amazon told us that their Kindle Fire tablet was $89 or 50 "Cryptozonians" (that is my name of the Amazon currency), and no matter what they held exchange rate between the two currencies through market supply, interest rates (staking), and other forms of market control, would that have a stabilizing influence over the market? If a company(ies) like that did something like this, offering us multiple routes of easy exchange for tangible assets and goods, would that provide the market with a means to regulate itself?
I know there are a mountain of ethical issues that would have to be overcome as well as issues with these companies acting as almost independent reserve banks, but it was just a shower thought.
Your thought is already implemented. Amazon has a coin but it can not be traded. Users earn and spend only.
The thought of using cryptocurrency to supplient fiat is also being applied. Venezuela created a crypto that is peg to the countries oil production.
A lot of new cryptos will spur up but the reality is most do not solve real problems therefore will become obsolete. I wouldn't want a coin that only works with Amazon or Facebook if I had bitcoin and litecoin that is accepted by a lot of different vendors.
Well I know they have a their Prime coins or what ever they might be called. I forget. But I was thinking of something that was really functioned like a currency. I guess me thought process surrounded the idea of someone with that massive amount of clout creating and controlling a currency that is tradeable and easily convertible into and out of Fiat.
Valenzuela is interesting but not perfect fit for my shower idea. So in my shower thought, Amazon or who ever would act as bank, exchange and governing body over its currency and exchange. A person could purchase their currency via their Amazon account and move it into the crypto markets or exchange other cryptos back into their currency and either purchase their products or simply sell them back to Amazon and take a payment back onto their credit card. Amazon's overall dominance and inventory control would allow them some artificial control over the market on their coin.
The key to a coin like this would be convertibility and fees. It would have to be able to be converted into and out of all currencies quickly and efficiently. It don't know, it was just a shower thought. I could see this as a way for a company to be able to corner the market on cryptos as they would be able to acquire large amounts and control supply.
So if each company does their own crypto where convertibility and fees are a none issue would that not defeat the propose of a decentralized system. One coin that can be used among all companies would be better. This is somewhat in place with bitcoin.
I a coin has value when it can solve problems and has a platform that can integrate end users to preform tasks. Steemit is a perfect example. We all blog here and hope to earn. In the future if Amazon, Facebook, and Google accept steem for purchases would that not be the best. Thanks.