Is the New Visa Bitcoin Rewards Card Worth It?
It may be a lot easier for you to earn Bitcoin after Visa announced that they will be partnering up with startup company Bitcoin to bring you the Visa Bitcoin Rewards Credit Card.
They will be launching the first-ever credit card that will reward users in Bitcoin by the Spring of 2021.
Visa’s approach to crypto has been evolving as Bitcoin is becoming more mainstream.
While there is a strong appeal about making bitcoin among bigger U.S. investors, there is still skepticism surround how this card can be worth it for their users.
Zac Prince, chief executive officer and found at BlockFi, stated, “We’re excited to add credit cards to our suite of products and expand Bitcoin’s accessibility to a broader set of consumers.”
Cardholders will earn 1.5% cashback on all purchases that will convert to bitcoin and automatically transferred into a BlockFi account every month.
The focus of this card is for investors to save as there are already debit cards that allow investors to spend the cryptocurrency.
This is also not the first time Visa has dipped into Crypto as Visa first partnered with digital startup Fold to create a debit card that offers cryptocurrency-based rewards at the beginning of this year.
BlockFi is even offering cardholders with the Bitcoin Rewards Visa Credit Card with $250 in the first three months if they use the card to spend $3,000 with of course the 1.5% cashback with every purchase.
According to their website, the bitcoin that is earned from each purchase is “regarded as standard crypto funding, and it can be withdrawn, earn interest, be traded, or used as collateral toward a crypto-backed loan.”
The card is not available yet but BlockFi customers can join a watchlist through their accounts.
While usually rewards cards offer cash back, points, or miles, this will be one of the first to offer non-traditional currency but is the card really worth it?
The Bitcoin Rewards Visa Credit Card has an annual fee of $200 which is pretty unusual for only $1.5% cash back. The fee will be issued by Evolve Bank and Trust.
Most rewards cards offer more than 1.5% cash back but not with an annual fee, however earning crypto instead does have an advantage if the price increases.
The annual fee may ward off investors who are using the currency for the first time and unless you’re invested in Bitcoin, it may not appeal to first-time buyers.
While it’s the first of its kind, the potential downside of this credit card is that other cash-back credit cards may be more beneficial to use to purchase Bitcoin instead.
As of now it also the information about the range of APR also hasn’t been released yet so it remains unclear “how much monthly interest people will be charged for their balances.”
A well, Bitcoin has high volatility so it can be subject to both gains and losses and it faces skepticism about the currency’s ability and transferability. As bitcoin isn’t classified as security it’s seen that way by people.
Investopedia also stated, “A host of debit cards already, or will soon, offer rewards in the form of crypto, including the Coinbase Card, MCO Visa Card, Fold Card, and BlockCard.”
This new Visa card may introduce other competitors who offer more rewards with a less annual fee in the near future as well.
Visa is creating a positive outlined adoption and is also helping to shape regulations toward digital assets around the world.
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