Despite their ups and downs, cryptocurrencies are becoming more and more popular, so the fact that they are now entering the credit card space doesn’t come as a surprise.
Specifically, on December 2, crypto-based lender BlockFi announced it will launch its first Bitcoin rewards credit card, somewhere in the first quarter of next year. Still, it’s worth mentioning that this isn’t the first time when cryptocurrencies are used in a rewards program, as there are a few Bitcoin debit cards out there already. On the other hand, what BlockFi is planning to launch is the first Bitcoin rewards credit card, trying to ‘conquer’ an industry dominated by rewards like cash back, points, or miles.
How does a Bitcoin rewards credit card work?
Traditional rewards credit cards are offering cash back, points, or miles. However, BlockFi’s Bitcoin rewards credit card works a bit different, offering owners rewards in nontraditional currencies or digital assets. Also, what’s very interesting is that this card is the first to offer investable assets that aren’t cash, considering that Bitcoin isn’t considered a security.
In terms of numbers, cardholders will receive $250 if they manage to spend $3,000 in the first three months, but also 1.5% back for each purchase. Everything in Bitcoin!
Card limits should be within the $5,000 – $25,000 range, while the annual fee will set you back $20. Sounds like a pretty fair deal or not?
Is such rewards credit card worth it?
Ok, no we know the whole idea behind it, which means that the only aspect that needs to be clarified is if BlockFi’s card is worth giving a shot.
Sure, introducing cryptocurrency-based rewards to the credit card industry should give a huge boost to the visibility and legitimacy of cryptocurrencies. On the other hand, an annual fee of $200 is something which a lot of people will stay away from.
At a first look, the fee and earning 1.5% back in cryptocurrency isn’t something that appealing, especially among those who aren’t familiar with digital assets. Still, with a 170% year-to-date return on Bitcoin, at the time of the writing, it can become very tempting, as long as you ignore the fees and, of course, the volatility of cryptocurrencies!