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Why Get Debit/Credit Card Cashback Rewards in Fiat When You Can Receive Bitcoin?

Exclusive Research

  • There are numerous companies offering debit and credit cards that reward you in bitcoin, but which one provides the best bang for your buck?
  • With bitcoin adoption on the rise, it’s an ideal time to join the trend and acquire the asset that everyone is aggressively accumulating.
  • The most enticing option can differ based on your priorities, however, the Venmo credit card currently generates the most rewards.

Report

Yearly revenues for credit card companies are in the multiple billions, so companies that capitalise on the first-mover advantage, by providing cryptocurrency rewards, have potential to steal market share away from the well-known behemoths of Chase, Citibank, Bank of America, and Capital One among others.

Restrictions Imposed on Analysis

Unfortunately, there are a considerable amount of companies that either do not have global reach or are not allowed to conduct business in the target market of the United States, where the aggregation of debt is a common occurrence. Due to this, the following debit/credit cards will be excluded from analysis: NuRI, CryptoPay.Me, Binance, TenX, Monolith, WirEx, Tap.Global and Bitnovo. To further narrow down the search, the following debit/credit cards were also omitted due to not yet being released: Gemini, UpHold, Nexo.io and Coinbase.

While the aim is to seamlessly retrieve cryptocurrency for everyday purchases, we want to minimise risk of fluctuations in principal and this necessitates the ability to store funds as a stablecoin and/or a fiat currency. With that said, Paycent and UnBanked were also removed as contenders. Also, while CoinZoom and Cryptereum do offer functional products, the respective limits imposed for ATM withdrawals at $1,000/Day and $500/Day essentially make these unusable.

Main Contenders

With the majority of the competition eliminated, the remaining contestants include the BlockFi credit card and the Venmo credit card. At this stage, the specific selection will be highly influenced by one’s personal preferences including foreign transaction fees, availability and quality of customer service, KYC requirements, annual fees, cashback percentages, promotional bonuses, transaction and ATM withdrawal limits, bank transfer/conversion fees and cryptocurrencies used for storage of value and redemption of rewards.

BlockFi Credit Card Countries Offered Within: United States Foreign Transaction Fee: None Know Your Customer(KYC): Required, per compliance with global KYC/AML regulations. Annual Fee: None Cashback Percentages: 1.5% Promotions:

  • Intro bonus: The initial $5,000 spent within the first 90 days will earn 3.5% in rewards
  • Trading Bonus: 0.25% back in BTC on all eligible trades, up to a max of $500 in BTC/month
  • Spend Bonus: 2% back in BTC for every dollar above $50,000 of annual spend
  • Referrals: $30 in Bitcoin for every client referral, in addition to the base Refer-a-Friend programme

Cryptocurrencies Used for Storage of Value: N/A: Fiat

Cryptocurrencies Used for Redemption of Rewards: Bitcoin https://blockfi.com/credit-card/

Venmo Credit Card Countries Offered Within: United States Foreign Transaction Fee: None Know Your Customer(KYC): Required, per compliance with global KYC/AML regulations. Annual Fee: None Cashback Percentages:

  • Earn 3% on your Top Spend Category
  • Earn 2% on your Second Top Spend Category
  • Earn 1% on all other Eligible Purchases

Promotions: None Cryptocurrencies Used for Storage of Value: N/A: Fiat

Cryptocurrencies Used for Redemption of Rewards: Bitcoin https://venmo.com/about/creditcard/rewards/

Conclusion
Given that there are only two feasible credit card options currently available, the determination as to which credit card to pick is simple. However, the short-term future will deliver more options, and increased competition will make this decision more complex.

Nothing in this article constitutes professional and/or financial advice. The content is provided exclusively for informational and/or educational purposes. Nothing is to be construed as an offer or a recommendation to buy or sell any type of asset. Seek independent professional advice in regards to financial, tax, legal and other matters.

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