Blockfi Announces Credit Card With Bitcoin Rewards

Dec 4, 2020

The resurgence of cryptocurrencies over the past year has been just as rapid as the deadly COVID -19 pandemic sweeping across nations worldwide. In a world where people don’t trust their politicians, avoid their banks, and fear inflation – cryptocurrencies have become a safe-haven asset.

The markets certainly seem to agree with that notion as Bitcoin, the world’s first and largest cryptocurrency, has been off the charts the past couple of months. In fact, it has recently surpassed its 2017 peak and was trading at almost $20,000.

This isn’t the first time that cryptocurrency is in the limelight, but this is the first time corporations are showing this much interest. Banks and financial services all across the globe have opened their previously-shut doors to cryptocurrencies.

Bitcoin is spearheading this momentum, with market analysts forecasting an astronomical value increase by next year. Considering Bitcoin’s recent leap, it’s becoming easier to believe the forecasts. In an interview with CNBC’s Fast Money, Julian Emanuel, Chief Equity and Derivatives Strategist at BTIG, said;

“In a diversified investment portfolio, we do think there is a place for crypto.”

Another Accomplishment for Bitcoin

And that’s only the beginning. This week, Blockfi introduced a project they’ve collaborated on with Visa, Evolve Bank, and Deserve. The project is a credit card that allows you to earn Bitcoin rewards with every purchase. The card is launching in the spring of next year, but customers can begin signing up for it already. Blockfi elaborated that;

“For every transaction that you make on the card, 1.5% cashback will accrue and then automatically be converted to Bitcoin and placed into your Blockfi account on a regular monthly cycle.”

Blockfi is also extending a sign-up bonus of $250 in Bitcoin upon spending at least $3,000 on the card within the first three months. Additionally, the company plans to charge the cardholders $200 on an annual basis. Although these cards will only be available in the US initially, Blockfi is encouraging everyone to join the waitlist. Perhaps they are willing to expand outside of the US if there’s enough demand for it.

Blockfi boasts that it is the first time the Bitcoin logo will be featured on a physical card and that it is the first product of this nature to enter the crypto ecosystem. The former may be accurate, but the latter certainly coincides with Fold Card’s slogan, which reads “The first Bitcoin reward card.”

What’s the difference?

The only noticeable difference between the two is that one Blockfi’s is a credit card while Fold is a debit card. But even these two aren’t the only ones in the game. There’s a line-up of financial institutions that are already, or about to begin, offering Bitcoin rewards. Included in the list are Coinbase Card, BlockCard, and MCO Visa Card.

Final Thoughts on Blockfi

The scheme will help legitimize cryptocurrencies, especially in the critic’s eyes. However, to become attractive to the population at large, it must be competitive. 1.5% is a standard reward rate, but

common cards don’t charge $200 annually. On the other hand, earning Bitcoin gives the cardholders the potential to profit from the price surges.

Traditionally, credit cards have offered rewards in the form of cashback, miles, or points. This is indeed the first time that crypto is entering the credit card sphere. However, Blockfi is most certainly not the first or only company to be launching this innovative scheme.