You can still pay using bitcoin, but they no longer give the discounts.
I hope my test order through Purse works well, so that I can switch all my Amazon shopping from Gyft to Purse.
https://www.gyft.com/points/
Emphasis is mine.NOTICE: At 11:00am PST on 2/18/2016, the Gyft Points Program will be changing. Gyft users will not be able to earn Points on gift card purchases but will be able to earn Points for other actions on Gyft. Users will still be able to use their Points they've already earned and those Points will not expire until the end of the calendar year following the year in which such Points were earned or rewarded. Stay tuned for announcements on new ways to earn Points!
Screenshot of the update:

Just to double check, I added an Amazon gift card in Gyft, and although the payment page still still shows bitcoin as payment option, it no longer shows the number of points you would earn. This is a change, but unfortunately I do not have a screenshot of how this page used to be.

Great opportunity for Purse. I hope my test orders will work out well!