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> if Nike stops making cool stuff my $25K is stuck in their rewards program. > > However, with a Nikecoin if you knew multiple 3rd parties (i.e. Citibank, Coinb

> if Nike stops making cool stuff my $25K is stuck in their rewards program. > > However, with a Nikecoin if you knew multiple 3rd parties (i.e. Citibank, Coinbase, etc.) were validating the Nikecoin ledger and could convert from Nikecoin back to USD there's more trust that could be developed. I don't follow your logic here. Why would Nikecoin have any value of Nike went out of business? > Just spitballing but yes I'm picturing it the same way BTC/Dogecoin/Shibacoins are tied to the USD in that you as Nikecoin holder you could freely convert back and forth at the going exchange rate and the number of Nikecoins is run with a predefined supply algorithm. My bad. I should have specified I meant a fixed exchange rate but you're saying it's a floating exchange rate. This means what I said before is true. Nike will have to price their items in terms of both dollars and Nikecoin which means they could use that to manipulate the value of Nikecoin. > I could also picture a standard set of Nikes always tied to a set Nikecoin price so Nike can provide some stablecoin like price stability. Yeah, but now you're back to trusting Nike.

somethoughts 5y ago
Why would Nikecoin have any value of Nike went out of business? - Because it's its own coin. Just like Dogecoin/Shibacoin will still have some value even if the original developers move on, Nikecoin could potentially have some similar value to Dogecoin if some other maintainers pop up to pick up where Nike left off. Nike reward points on the other hand will go to zero if Nike ever shuts down its servers. Generally cryptocoins presumably are designed from the ground up to be maintained by multiple weakly trusted parties where as internal reward point CRUD systems are typically designed to require full trust by all maintainers at all times. Nike will have to price their items in terms of both dollars and Nikecoin which means they could use that to manipulate the value of Nikecoin. - Because there's less lock in with the exchange rate publicly available and you can convert to USD at any time, Nike would be motivated to maintain a healthy ecosystem. And perhaps I come from a Charlie Munger type place where I don't see as much value in crytocoins in general and this is the only potential use case I can come up with :).

somethoughts 5y ago

Why would Nikecoin have any value of Nike went out of business? - Because it's its own coin. Just like Dogecoin/Shibacoin will still have some value even if the original developers move on, Nikecoin could potentially have some similar value to Dogecoin if some other maintainers pop up to pick up where Nike left off. Nike reward points on the other hand will go to zero if Nike ever shuts down its servers. Generally cryptocoins presumably are designed from the ground up to be maintained by multiple weakly trusted parties where as internal reward point CRUD systems are typically designed to require full trust by all maintainers at all times. Nike will have to price their items in terms of both dollars and Nikecoin which means they could use that to manipulate the value of Nikecoin. - Because there's less lock in with the exchange rate publicly available and you can convert to USD at any time, Nike would be motivated to maintain a healthy ecosystem. And perhaps I come from a Charlie Munger type place where I don't see as much value in crytocoins in general and this is the only potential use case I can come up with :).