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Forget miles, this card pays you back in Bitcoin — Is it worth it?

Dec. 07, 2020
4 min read
Bitcoin
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From travel rewards, to cashback to free Starbucks coffee, there are lots of different types of credit card rewards out there. Soon, you'll even be able to earn Bitcoin rewards.

Crypto exchange platform BlockFi recently announced that it's partnering with Visa to launch a credit card that rewards purchases with Bitcoin, rather than points, miles or cash back. This will be the world's first credit card that pays out in Bitcoin, but whether it will actually be worth applying for is another question. The BlockFi Rewards Visa® Signature Credit Card carries no annual fee and earns rewards at a flat rate.

The information for the BlockFi Bitcoin card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

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BlockFi Rewards Visa® Signature Credit Card

The BlockFi Bitcoin Rewards credit card will offer cardholders a flat 1.5% cash back that is automatically converted to Bitcoin across all spending. This means you won't have to juggle specific bonus categories, but could limit your earning potential in popular categories such as dining.

At the time of the launch, new cardholders will be given an intro offer of earning 3.5% back in Bitcoin during the first 90 days of card ownership, up to $100 in bitcoin and 2% back in Bitcoin on every purchase over $50,000 in annual spend

(Photo courtesy of BlockFi)

While BlockFi hasn't released details about benefits yet, it did hint at purchase protections. If this ends up being a Visa Signature card, benefits may include extended warranty protection and various travel protections. What we know for sure is that the card will feature a sleek metal design.

Related: Everything you need to know about Visa Signature card benefits

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The card, which will be issued by Evolve Bank & Trust, is set to start shipping in spring 2021. Waitlist registration has already opened for existing and new BlockFi users with funded accounts and will become available to the public in January. It will only be available to U.S. residents in qualified states.

Related: The prettiest credit cards, ranked

Is it worth it?

Bitcoin is the fastest-growing currency and is showing no sign of slowing down. Still, that doesn't necessarily mean that you should jump on this card. Putting aside the risks associated with investing in such a volatile currency, this card doesn't provide much that a standard cash-back card wouldn't.

For instance, the Citi® Double Cash Card earns 2% (1% when you make purchases, 1% when as you pay your bill) while the Chase Freedom Unlimited earns 1.5% back on general everyday purchases. The Freedom Unlimited kicks things up a notch by also offering 5% back on travel booked through Chase Ultimate Rewards, 5% back on Lyft rides through March 2021 and 3% cash back on dining and drugstores. And you don't have to keep track about Bitcoin's fluctuating values.

As such, if you want to begin earning Bitcoin rewards, it could be wiser to continue using a regular, more rewarding cash-back card and then using a commission-free crypto trading platform — such as BlockFi or Robinhood — to invest in Bitcoin using the money you earned. Sure, it won't be an automatic process, but you could potentially earn a better return on your spending.

Related: Should you buy Bitcoin with your credit card?

Bottom line

There's a new credit card hitting the market that will earn rewards in the form of Bitcoin. However, if you're interested in investing in Bitcoin, you could be better off with a regular credit card and using your cash back to buy the digital asset separately and on your own terms.

Featured image by Getty Images
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.