Imagine McDonald's makes its own money, let's call them clown-bucks (opens in new tab)

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37 pointsCrazyontap3y ago12 comments

12 comments

That reminds me that McDonald's did print their own money! It was their version of a gift-certificate, before magnetic-strip gift cards were around. You'd get a bound booklet of 5 imitation dollar bills, which you could tear off and redeem for the equivalent dollar-value of food at McDonalds.

https://imgur.com/a/6U3o64p

superasn3y ago

Now imagine McDonald took a $10B+ loan and based on the collateral of the gift-certificates it has printed but hasn't given away. Because that is what is happening in crypto afaik.

I think this part probably didn't happen in real word before ...or did it? (hoping it didn't)

fineIllregister3y ago

This whole analogy is bad because McDonalds produces physical goods, which provide a basis for a valuation of clown bucks, gift certificates, or whatever. At the some point, the holder of clown bucks can turn them into burgers, a commodity in a competitive market, that McDonalds has demonstrated the ability to deliver consistently.

There is no incentive for McDonalds to stop producing these burgers, so no risk of rug pulling.

Collateralizing the loan with McDonald's gift certificates would just be a bet that McDonald's will sell 10b$ more food, minus some delta to incentivize people to use the lender's clown bucks instead of greenbacks.

bravetraveler3y ago

These were buried incredibly deep in my memory, thank you for the reminder

geenew3y ago

Canadian Tire Money:

https://en.wikipedia.org/wiki/Canadian_Tire_money

Used to be able to use that at the local video rental place.

ratg133y ago

Is this not how airline and hotel points work?

kelseyfrog3y ago

That's new. I didn't know I could buy points from those who make them and transact them between other accounts.

batiudrami3y ago

Funnily enough you actually can with airline points and there are websites dedicated to this economy of getting points then selling or transferring them to another airline where they are more valuable or useful (Singapore Airlines’ KrisFlyer program is very popular).

1 more reply

impulser_3y ago

What airlines or hotels are taking out loans backed by their points?

That's the problem.

ratg133y ago

All of the major US airlines did exactly this.

https://www.marketwatch.com/story/airlines-are-using-frequen...

Or am I misunderstanding your comment?

thenewwazoo3y ago

No, because loyalty points are unfunded liabilities on account sheets.

j / k navigate · click thread line to collapse

12 comments

favorited3y ago

https://imgur.com/a/6U3o64p

superasn3y ago

Now imagine McDonald took a $10B+ loan and based on the collateral of the gift-certificates it has printed but hasn't given away. Because that is what is happening in crypto afaik.

I think this part probably didn't happen in real word before ...or did it? (hoping it didn't)

fineIllregister3y ago

There is no incentive for McDonalds to stop producing these burgers, so no risk of rug pulling.

bravetraveler3y ago

These were buried incredibly deep in my memory, thank you for the reminder

geenew3y ago

Canadian Tire Money:

https://en.wikipedia.org/wiki/Canadian_Tire_money

Used to be able to use that at the local video rental place.

ratg133y ago

Is this not how airline and hotel points work?

kelseyfrog3y ago