[davidrangel]

Thanks. You make a good point about the rewards. I thought 1% could be a decent estimate given that not everyone pays attention, some points are never redeemed and rewards over 1% are usually only for specific purchase types (e.g., gas). But I may very well have underestimated this. And if people do redeem at a 90%+ rate, then they will definitely notice if there are no rewards on the Bitcoin side.

Very interesting.

[philrapo]

Here's a source for that stat from a Q3'12 AMEX earnings call transcript:

"As you know, our current ultimate redemption rate is 93%, a very high assumption for any consumer loyalty program."

[1] http://seekingalpha.com/article/931161-american-express-mana...