Should You Buy a New Visa Bitcoin Rewards Card?
Visa partnered with cryptocurrency startup BlockFi to offer the first bonus credit card that is paid out in bitcoin rather than cash, but is it worth applying for? If you’re not very optimistic about cryptocurrency and don’t mind being seriously downgraded for an annual fee, it might be more of a novelty card with limited benefits.
BlockFi map is not yet available – have a list of expectations for existing customers with funded accounts, and a waiting list will be available to the public in January. The cards will go on sale next spring.
Benefits of the card
Debit cards that allow customers to spend cryptocurrency already exist in the market, but this card is focused on savings. Cardholders earn 1.5% cashback on all purchases, which will be automatically converted to Bitcoin and deposited into their BlockFi account every month. Since you deposit into a BlockFi account, it is considered standard cryptocurrency funding and can be withdrawn, traded, earned interest (up to 8.6% per annum, according to the BlockFi website ), or used as collateral for cryptocurrency -backed loans.
In addition, the company offers $ 250 converted to bitcoin as a welcome bonus for the first year if you spend $ 3,000 or more on the card within the first three months.
Cons of the card
While there is a growing appetite for cryptocurrencies like Bitcoin among large US investors, it is extremely volatile and causes skepticism about the usefulness and feasibility of transferring the currency. Of course, the partnership with Visa is pushing cryptocurrency more widely, but you must truly believe in Bitcoin if this card will work for you.
The card is also clouded by a $ 200 annual fee, undermining the modest 1.5% cashback reward. There are better rewards of 1.5% cashback like Chase Freedom Unlimited or Capital One Quicksilver, which have a $ 200 welcome bonus that triggers after you spend $ 500 (versus $ 3,000 BlockFi) , and most importantly, no annual fee. You will only really get this card for Bitcoin features and not for any generous rewards.
There are also no details on the range of annual interest rates, so it remains to be seen how much monthly interest people will be charged on their balances.
Bottom line
If you are interested in investing in cryptocurrency, you might be better off using a regular credit card for easier cash back rewards and then using that money to buy bitcoins separately.