MAJR Newsletter 090

Get bitcoin when you spend? Yes please.

Jun 04, 2021

- tverd

MAJR NEWS BRIEF

The popularity of Bitcoin and digital assets is undeniable. Bitcoin is continuing to go mainstream transforming the landscape of finance.

As if there was not enough reason already to jump aboard the lifeboat and escape the broken financial system, here is another one. The introduction of bitcoin rewards cards is the newest way to incentivize people to adopt Bitcoin offering users the chance to earn valuable bonuses through cryptocurrency. This is brilliant. Here’s why.

We live in a consumerist society that encourages constant spending. The most common payment method is via a debit and credit card. Both make up over half of the preferred methods for payment. People use these cards for various reasons. They are easy to use, you do not have to carry cash, it is secure, but also, these payment options allow consumers to obtain certain benefits like cash back. Could you imagine a credit or debit card that offered receiving cash back rewards but in money that increases in value instead? Well…wake up because it is happening right before our eyes. This is exactly the opportunity these new bitcoin rewards cards give to the people, especially as the value continues to climb. The benefits make it almost like you never spent at all.

How do they work?

First, there are two main categories when deciding between which crypto card to get or sign up for: a debit and/or credit card.

On the surface, bitcoin credit cards resemble no significant differences compared to traditional credit cards. Very similarly, the transactions will be aided by some of the largest payment processing networks like Visa and Mastercard. Therefore, payments can occur wherever the services of these networks are accepted. Logistically, the credit cards will operate the exact same. The crypto card holders are issued a predetermined line of credit in USD, they go and swipe their card buying their vanilla latte from Starbucks every morning, and are responsible for paying back the amount borrowed to make any given purchases. They will be charged interest if they do not pay back this amount. However, every time a customer spends they will be eligible for specific rewards much better than before. Instead of airline miles, hotel points, or cash back, these credit cards provide bitcoin and other cryptocurrencies as the substitute.

Debit cards are being created within this space as another alternative payment method. A crypto debit card is a simple, efficient way for holders of cryptocurrency to access their personal funds for spending. The more established and valuable these assets have gotten, the more demand for a quick way to utilize them. This type of card solves this huge problem for cryptocurrency holders. They function much to how a prepaid debit card does. A holder’s cryptocurrency is converted to the preferred currency for payment, such as USD. It is then loaded onto the card and ready to be used to make any purchases in that given currency. Instead of being funded by credit, the debit card is funded by the user’s personal portfolio. Don’t worry, you can still go to Starbucks and get your vanilla latte. Withdrawals from ATMs into USD will be another option for users of this card. Like the credit cards, there are numerous, lucrative incentives in the form of crypto rewards for using the debit cards on everyday transactions.

Here are some of the top cards on the market or coming soon along with their benefits.

The BlockFi Credit Card

Clink. Clink. For starters, this card is metal and downright sexy. BlockFi, a cryptocurrency exchange and bank-like platform, is preeminent being the first to company introduce a payment option like this with their BlockFi Bitcoin Rewards Visa Signature Credit Card. It is probably the best true “rewards” credit card out there right now being designated for individuals and offering cash back in the best asset we have, bitcoin. The way it works is very simple. Every time you swipe, you get 1.5% back on your purchase. The amount will accrue, automatically be converted to bitcoin, and then placed into your BlockFi account on a regular monthly cycle. Important to note, the 1.5% is the highest rate for bitcoin rewards on any card. Also, there is a $250 bonus when you sign up and spend $3,000 in the first three months. When first announced, the credit card had an annual fee of $200 that they recently dropped. It is only available in the US and looks to expand internationally in the future. BlockFi’s card is actually being rolled out as we speak, and it looks pretty enticing.

Join the waitlist to reserve and get your BlockFi Bitcoin Rewards Credit Card.

The Gemini Credit Card

The Winklevoss twins are always up to something. At the end of April, regulated cryptocurrency exchange, Gemini, announced they are getting in on the fun of the new crypto credit cards and the benefits are bold. With an exclusive partnership, Mastercard will be the main network to facilitate and process transactions. The Gemini Credit Card offers customers to earn up to 3% back in bitcoin or other cryptocurrencies on the dollars spent. Wow. This is how it is broken down. Users can earn up to 3% back on dining, 2% back on groceries, and 1% back on other purchases. Like BlockFi, the rewards will automatically be deposited in the cardholder’s Gemini account. There is no annual fee to use it as well. The card will be available in the US this summer with intentions of spreading globally and accepted wherever Mastercard is a valid payment option.

Join the waitlist to get your Gemini Credit Card.

The Coinbase Debit Card

Coinbase has a Visa debit card that lets you spend any asset within your portfolio on the platform and receive rewards for each purchase. Most debit cards do not have a cash back program in general, so Coinbase can separate themselves very quickly off the bat. These rewards amount up to 4% back on purchases that includes 4% back in stellar (XLM) and 1% back in bitcoin (BTC). Coinbase had rather big news earlier this week as they announced that their card will be compatible with Apple Pay and Google Pay. This proves that this technology is going to increasingly become more a part of our everyday life. There is no annual fee to use this card like the others.

Wrap Up.

This is a very exciting time for Bitcoin and cryptocurrency as a whole. Let’s remind ourselves what the pillars of money are: 1. storage of value 2. medium of exchange 3. unit of account. The creation of cryptocurrency rewards cards are helping push adoption of digital assets and the use cases of the assets to where they could serve as a medium of exchange. There are a number of benefits these new payment options give to the consumer outside of receiving crypto. It offers access to various currencies on a single card, there are low to no fees, and the cards allow you to customize preferred methods of payments and rewards. It opens the door to a brighter future with Bitcoin deeply embedded in it.

These are the main crypto rewards cards on the market, but there are many more than the ones listed above. Check them out and find the best one for you. Cash back is the past, bitcoin back is the future.

Get bitcoin when you spend.

Brevin White

IN OTHER NEWS:

Elon continues with his trolling ways after tweeting a broken heart emoji hinting at a potential breakup with Bitcoin. Musk's broken heart sent BTC down nearly 7%.
Bitcoin 2021 is live from Miami! The conference kicked off today with libertarian and ex-presidential candidate Ron Paul slamming the Federal Reserve and saying that Bitcoin needs be “considered seriously,” given the current state of the economy and the Fed’s monetary policy.
U.S. employers added 559,000 jobs last month, the Labor Department reported Friday, up from a revised 278,000 jobs in April. The unemployment rate fell to 5.8% in May from 6.1% the prior month.
Solana, who we wrote about in Wednesday’s newsletter, plans to close $450 million round in March but expanded it in response to strong interest. The upstart blockchain has a focus on dapps and is a potential rival to Ethereum.
U.S. equities fell Thursday as investors digested a raft of economic data and President Joe Biden’s indication that he may be open to a lower corporate tax rate than 28%.

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STATS

Cash vs. Credit Card Spending Statistics (as of January 2021)

Debit cards remain the preferred method of payment, followed by credit cards then cash.
More than half of purchases made with cash are under $10.
Most people carry less than $40 cash.
The average cash purchase is $22 while the average credit / debit card purchase is $112.
Consumers will spend up to 83% more when using a card vs cash.
The average American credit card debt is $6,028.

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