`currently handle Institutional Development at OKCoin - the largest Chinese Bitcoin exchange. Thanks for
`following.
`ask me anything
`submit a 0st
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`The OKCoin Story http://t.co/9us6UglGUo on @bloglovin@liu'ackc
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`Tip
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`Bitcoin backed comorate currencies are coming
`Quora credits, American Airline miles, Esso points, reddit Gold.
`What are these things backed by? The companies that issue them.
`What will they be backed by? bitcoins.
`Private banks issued Gold backed currency a hundred years ago for ease of use in everyday transactions.
`Corporates will be issuing Bitcoin backed rewards/loyalty/gamification tokens in the near future.
`Many argue that Bitcoin will have gone mainstream when people don’t even know they are using it. Next
`time you are collecting those Starwood SPG points, what you will actually be doing is receiving Bitcoin.
`Any reward program not backed by Bitcoin will be less credible in comparison.
`Bitcoin fundamentally is dynamic in a way Fiat and Gold cannot be. This is why corporate points have
`never been redeemable for Gold or Fiat because it has been too difficult to link with digital reward units.
`For exclusivity and loyalty reasons, I don’t suspect companies will let you buy your way into Starwoods
`Platinum with bitcoins. Similarly, if you redeemed your points for bitcoins, you will lose your status.
`However, the reserves in bitcoins will be there should you choose to leave the company’s system.
`Private organizations move much faster than governments so I would expect corporates to be the first to
`ack their currencies with Bitcoin. At that point, the argument that Bitcoin isn’t backed by anything
`ecomes a whole lot more blurry.
`Today’s loyalty programs like One Alliance and Starwood’s SPG are extremely large and concentrated
`ecause people want more and more ways to collect and redeem. If you compare Bitcoin to fiat currencies,
`then sure, it looks like Bitcoin isn’t quite there in terms of proliferation. However, if you compare to loyalty
`oints, it looks a whole lot better. Bitcoin backing will allow many smaller companies to issue trusted
`loyalty points as they will be leveraging off the credibility of Bitcoin as value.
`
`ovember 9, 2014 (12:22 am1
`3 notes
`I bryanb229 likes this
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`'0'Or0 likes this
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`"
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`'0'0rO said: Very nice. If implemented with side chains, it would also enable clean conversion between
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`"
`rewards systems.
`l
`'ackcliu posted this
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`1/23/2015
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`Jack C. Liu — Bitcoin backed corporate currencies are coming
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