Key Takeaways

In this insightful podcast episode, Natalie Brunell sits down with Ian Major, co-founder of Joltz, a company innovating in the bitcoin rewards space. Their conversation delves into the problematic nature of traditional fiat-based loyalty programs, such as airline miles and hotel points, which Ian's research has shown to be subject to considerable inflation, much like fiat currency itself.

Ian's expertise in loyalty program analytics has revealed a stark reality: many loyalty programs are not just failing to break even for businesses but are also losing value for consumers due to depreciation. This depreciation is the result of companies having the ability to print rewards points at will, effectively debasing the value of these points, which often go unrecognized by consumers until they attempt to redeem them for goods and services.

Joltz was founded as a response to this flawed system, offering an alternative where companies can reward customers with satoshis, the smallest unit of bitcoin. The idea is that, unlike traditional points that depreciate over time, bitcoin's potential to appreciate in value could create a win-win situation for both businesses and consumers. Ian also touches on how loyalty programs using bitcoin can encourage a circular economy and bring more people into the bitcoin ecosystem.

Best Quotes

1. "Points are kind of a bit of a scam, right? Like points being this derivative of fiat, which in turn is a scam. It would logically follow that points are a scam." - Ian Major, highlighting the flawed nature of traditional rewards points based on fiat currency.
2. "Bitcoin fixes this." - Ian Major, suggesting that bitcoin and its underlying network can address the issues of value depreciation and lack of flexibility in existing loyalty programs.
3. "We're in the early, early innings for how rewards are going to be integrated in all sorts of different business environments and systems." - Ian Major, expressing optimism about the future integration of bitcoin-based rewards in various industries.
4. "It's like actually you have sats underneath that." - Ian Major, describing the potential for loyalty points to be backed by bitcoin, offering stability and value preservation.

Conclusion

This podcast episode with Ian Major sheds light on the inefficiencies and inherent devaluation present in traditional loyalty programs. Ian's research and the establishment of Joltz underscore the untapped potential of bitcoin as a robust and appreciating rewards system. While some companies may be hesitant to adopt a bitcoin standard for their loyalty programs, the conversation suggests a future where consumer preferences might force a shift towards more value-preserving reward systems like those offered by Joltz. As the conversation concludes, it becomes clear that bitcoin and satoshis could play a pivotal role in fostering circular economies and driving the adoption of bitcoin as more than just a store of value, but also as a medium of exchange. Ian's vision for the future of rewards programs using bitcoin is not only innovative but reflective of a broader trend towards integrating Bitcoin into everyday business and consumer practices.