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BlockFi Visa Card
BlockFi Visa Card Pros & Cons
This is a real credit card, not a crypto debit card
Earn 1.5% cashback bitcoin rewards whenever the card is used
New users are offered $250 in bitcoin once they have spent $3,000 via the BlockFi Visa card
Earn a yield on your bitcoin rewards
$200 annual fee
BlockFi is a completely custodial crypto bank
Bonuses associated with the card are less clear after the first year of use
BlockFi Visa Card at a Glance
What is the BlockFi Visa Card?
The BlockFi Visa card is a real credit card that provides its users with 1.5% cashback rewards on all purchases. For bitcoin users, the key selling point of the card is that those cashback rewards are denominated in bitcoin. Up to this point, nearly all Visa and Mastercard card offerings related to crypto have been of the debit variety, as the main point of these cards was to allow crypto asset holders to quickly spend the value associated with their holdings anywhere Visa or Mastercard is accepted.
With the BlockFi Visa card, the point is to act like a traditional credit card that is common in the traditional financial system, while also allowing users to accumulate bitcoin via cashback rewards. This card is closely tied into the overall BlockFi banking platform, as the rewards are automatically deposited into a user’s associated BlockFi interest account. It should be noted that many of the finer details around the BlockFi Visa card are still unknown at this time, as the card has yet to launch.
What Are the Benefits of the BlockFi Visa Card?
There are three key benefits of the BlockFi Visa card that are known at this time. First, the 1.5% cashback rewards that come with this credit card offering are denominated in bitcoin. This means that users of the card will effectively be able to stack bitcoin for free whenever they use the card for their day-to-day purchases.
Another key benefit of the BlockFi Visa card is the welcome bonus, which provides users with $250 in bitcoin as a reward for completing $3,000 worth of purchases with the card. This welcome bonus is $50 greater than the $200 annual fee, which means the card can basically be free for the first year rather easily. One last benefit of the BlockFi crypto credit card is that it is linked to BlockFi’s overall suite of crypto banking services. For example, cashback rewards are instantly deposited to BlockFi interest accounts, which means users can easily earn interest on their newly-acquired bitcoin.
Potential BlockFi Visa Card Dealbreakers
While the BlockFi bitcoin credit card is one of the most anticipated products for the overall cryptocurrency space in 2021, there are still some downsides of this offering that will turn off some potential users.
For one, this is a credit card and not the sort of crypto debit card that most people will be used to seeing in the crypto industry. This means that users of the card will need to pass a credit check before they are able to gain access to the card. Additionally, some crypto users may prefer the ability to convert crypto into spendable cash on a card rather than taking on debt to earn bitcoin rewards.
Another potential dealbreaker with the BlockFi bitcoin Visa card is that the card is still not available. Specifics on fees, availability, and more aspects of the card are also not yet available, and there are a number of other crypto cards already available on the market.
Finally, it should be remembered that BlockFi is essentially a bank, which may go against the philosophical beliefs of many traditional bitcoin users. Operating within the legacy financial system comes with endless regulations, which means cypherpunks will want to avoid this credit card.
Is the BlockFi Visa Card Right for Me?
The BlockFi Visa card is definitely an interesting option for accumulating more bitcoin. It does not operate like most other crypto Visa cards, as the point is more about helping users accumulate bitcoin rather than making their crypto holdings easier to spend in the real world.
Anyone who is looking for a passive way to increase their bitcoin holdings over the long term should definitely consider the possibility of making this credit card their go to option when they’re out on the town.
To get the welcome bonus associated with the BlockFi Visa card, you must spend at least $3,000 on the credit card within the first three months of when the card is originally received. The reward for spending this much with the card in the first three months is $250 worth of bitcoin.
There are many similarities between BlockFi and traditional banks. Many of the features of traditional banks, such as borrowing and lending, can also be found at BlockFi, and the crypto financial institution also takes custody over their customers’ crypto assets. Gemini, which is the cryptocurrency exchange that takes care of custody for BlockFi, is registered as a trust company in New York.
Yes, you can buy bitcoin and other crypto assets on BlockFi.
No, there are other credit cards and debit cards that offer cashback rewards denominated in bitcoin to their users. For example, Fold App is working on a credit card with bitcoin rewards and Uphold offers bitcoin rewards on their crypto-backed debit card.
No, the BlockFi Visa card is a credit card, so balances are paid back at the end of each month rather than deposited to enable spending. It is likely that BlockFi will make it easy to sell crypto holdings in order to pay off debt that is accumulated via the BlockFi credit card.
No, the BlockFi Visa card is a credit card, so users do not need to make a deposit to the card before they can use it.