Buzz
Visa has teamed up with the cryptocurrency startup BlockFi to introduce the first-ever rewards credit card that gives Bitcoin as rewards instead of cash. But is it really worth applying for? If you're not particularly optimistic about cryptocurrency and are concerned about the high annual fee, this card may just serve as a novelty with minimal advantages.
The BlockFi card isn't available yet. There's currently a waitlist for existing clients with funded accounts, and the public waitlist will open in January. The cards are anticipated to be shipped next spring.
Advantages of the card
Debit cards that let customers use cryptocurrency are already available, but this card prioritizes saving. Cardholders earn 1.5% cash back on all purchases, which is automatically converted into Bitcoin and deposited into a BlockFi account each month. Since the funds are deposited into a BlockFi account, it functions like regular crypto funding, allowing withdrawals, trades, interest earning (up to 8.6% APY, according to BlockFi’s website), or use as collateral for crypto-backed loans.
For a welcome offer in the first year, the company is offering $250 worth of Bitcoin if you spend $3,000 or more within the first three months.
Drawbacks of the Card
Despite growing interest in cryptocurrencies like Bitcoin among large U.S. investors, it remains highly volatile and faces skepticism regarding its practicality and transferability. While a partnership with Visa brings crypto closer to mainstream acceptance, this card is best suited for those who truly believe in Bitcoin.
The card comes with a $200 annual fee, which reduces the value of the 1.5% cash back reward. There are better options for 1.5% cash back, such as the Chase Freedom Unlimited or Capital One Quicksilver, both offering a $200 welcome bonus with a mere $500 spend (compared to BlockFi’s $3,000) and, importantly, no annual fee. This card is primarily for the Bitcoin benefits, not for generous rewards.
The specifics of the APR rate range are not provided, so it's uncertain how much interest individuals will be charged each month on their balances.
Conclusion
If you're thinking about investing in cryptocurrency, it might be more advantageous to use a traditional credit card that offers more accessible cash back rewards, then use those rewards to purchase Bitcoin separately.
