Airline Loyalty Programs & Credit Card Companies are like Central Banks & #web3 can disrupt them!

For instance, did you know that the market cap of United Airlines, this is probably a little bit dated, but at the time it was 10 billion and its loyalty program was worth 21 billion. Wow, Same for Delta.

Same for American. And so when you actually study the loyalty program business, you realize, oh my God, this is basically a central bank.

They print their own currency, they find secondary buyers for it. For instance, Hertz will contract with whatever American Airlines and reward the Hertz customers with American Airlines points. Where do they get their points from? They're buying it from American Airlines on a secondary market through a private contract. And so all of these credit card companies, that allow you to spend your, American Airlines points or United Points, or with any retailer in the credit cards network. Those retailers are accepting points, but those points are useless. Because without the credit card company buying them back for a price, which essentially means that the credit card company is bankrolling those coins. And so you're like, oh, wow, they're a central bank, essentially.

They're not taxed!

#shorts

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