Will people ditch the US dollar for the lawful tender of the United States of Amazon? No; the roll out of Amazon Coins is so for “thousands of Kindle Fire apps, video games and in-app items at Amazon.com or on your Kindle Fire” – not books or movies. And also while bought coins never ever run out, promotional coins received free of charge or as part of another deal only last for a year. On the other hand, the average life-span of an electronic gadget these days is much shorter than Napoleon ducking under a pygmy goat. For now anyway, if you ditch the Fire for an iPad, Amazon gets to keep your coins in its jar.
Unlike Bitcoin, the preferred technique of confidential deals for medicine bargains and also unusual earth magnets discredited by the Consumer Product Safety Commission, there’s no open exchange market for Amazon Coins. As a matter of fact, Amazon states, “Coins can not be marketed, moved for worth, retrieved for cash or related to any other account, other than to the degree called for by regulation”. Even Second Life Linden Dollars can be exchanged for Bitcoins and Earn free Bitcoin, and then traded back into money on one of a number of Bitcoin exchanges.
Amazon.com is marketing their coins at a discount rate – 500 coins for $4.80 up to 10,000 coins for $90.00 – and that seems like a bargain. At approximately a 10% discount rate, it’s like avoiding the Internet sales tax that may be applied in the future if Congress obtains its way. Contrast this with Microsoft that also utilizes a point system on the Xbox Marketplace, yet gives only 80 points per buck. If you’re Microsoft, you give or offer points to buy applications and video games, plus increase customer wallet-share of various other items such as Skype contacting which the factors can be invested.