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Crypto startup BlockFi is partnering with the credit behemoth Visa, Inc to launch a Bitcoin Rewards credit card in the Spring of 2021.
This will be the first time the Bitcoin logo is physically printed on a credit card. BlockFi’s partnership with traditional finance is a huge step for the Bitcoin community, as the traditional industry continues to bet on crypto.
BlockFi is the latest in a series of cryptocurrency ventures Visa has recently launched. The traditional credit company has partnered with Coinbase and Fold earlier this year to tap into the growing crypto space.
Keep reading our BlockFi Bitcoin Rewards Credit Card Review to see what this card offers and how it benefits those garnering exposure to the broader crypto market.
BlockFi’s Bitcoin Rewards Credit Card: Quick Glance
Here is the fine print. From rewards to sign up bonuses and annual fees, we review it all below.
- Rewards Rate: 1.50% Cash Back APY
- Sign-Up Bonus: $250 in Bitcoin (must spend more than $3,000 in first three months)
- Annual Fee: $200
BlockFi’s credit card will offer 1.5% “cash back” in terms of Bitcoin that will be deposited into your BlockFi account. If a user spends more than $3,000 in the first three months, they will receive a $250 sign up bonus in Bitcoin. The card comes with an annual fee of $200.
As Zac Prince, the CEO and Founder of BlockFi stated in a recent interview, “It’s denominated in dollars, you’re spending dollars, you don’t pay anything if you’re not carrying a balance every month” (Cheddar Interview).
Learn More: BlockFi Review
Why Bitcoin Rewards and Not Cashback?
Unlike the US dollar, Bitcoin is a deflationary asset because it has a fixed supply. So instead of receiving rewards whose value decreases over time, BlockFi wants your rewards to appreciate in value.
Imagine using your credit card to buy milk and it turns into the best investment of your lifetime. As of this writing, Bitcoin is up 160% YTD.
From the CEO: “Instead of membership reward points or cash back, you received a Bitcoin cashback (reward) based on every purchase that you made on the card” (Cheddar Interview).
Credit Card Debt: Is BlockFi Different?
Carrying debt with BlockFi is just like any other credit system. Depending on your fiscal responsibility, your credit score will be impacted positively or negatively when using the BlockFi credit card.
Again, let’s hear what Zac Prince has to say about BlockFi and your credit score, “Credit cards are not a great mechanism to carry debt, it’s usually one of the higher cost forms of debt. Our card won’t be any different than those traditional credit card structures” (Cheddar Interview).
How to get BlockFi’s Credit Card
If you’re an existing BlockFi customer with a funded account, you can enter the waiting list today.
The list will be available to the public in January 2021, and the first round of cards will ship out in Spring 2021.
One week after launching their waiting list, BlockFi announced that 50,000 people signed up for the card. Each week, this number continues to grow.
Who is Issuing the Card?
Evolve Bank & Trust will assist BlockFi in issuing the Bitcoin credit card. They are a renowned brand and a global leader in the payment processing industry.
Evolve Bank & Trust is known for identifying disruptive shifts in the financial landscape and providing their clients with the resources to capitalize on these changes.
What Else Does BlockFi Do?
BlockFi offers a suite of financial products that allow clients to create and manage wealth through digital asset investments.
Zac Prince, BlockFi’s CEO, is bridging the gap between cryptocurrencies and the traditional tools of wealth management.
BlockFi currently offers its users three other services:
#1. Buy and Sell Crypto for Free
BlockFi’s easy to use mobile app makes it easy to buy and sell all kinds of crypto.
BlockFi lets you exchange pairs between cryptocurrencies including Bitcoin, Ethereum, Litecoin, USD Coin, Tether, Gemini Dollar, PAX, and PAXG.
Also, you won’t be paying fees on BlockFi’s platform. You only pay the price displayed for the trade and nothing more.
#2 Earn Interest in their BlockFi Interest Account (BIA)
It’s about time you can earn interest on your cryptocurrency! Not only does BlockFi let you earn interest in your choice of crypto, but they pay out some fantastic yields.
You can earn up to 8.6% APY on Bitcoin and other coins. Granted, BlockFi is aware of the volatility of cryptocurrencies and warns to not treat their BIA as a traditional savings account. Learn more about BlockFi’s Interest Account here.
#3 BlockFi Crypto-backed Loan
BlockFi’s crypto-backed loan allows you to post crypto as collateral and borrow US Dollars against it. This revolutionary feature will enable you to unlock capital without having to sell your assets and pay Uncle Sam.
Moreover, if you don’t want to sell your crypto because you think it has more room to run, you can still put your gains to work by taking out a loan with BlockFi.
The interest rate you pay depends on the amount of collateral you post, and which Loan to Value Ratio you choose.
Security on BlockFi
They are the only fintech brand in the crypto space that has attained institutional backing at their scale. BlockFi has partnered with the Winklevoss Twins’s company Gemini to serve as its custodian.
Security is Gemini’s main feature, as it’s a licensed custodian and regulated by the New York State Department of Financial Services.
Gemini is also the world’s first crypto custodian to pass the highest level of security and compliance testing — the SOC 2 administered by Deloitte.
Additionally, Gemini keeps 95% of its assets in cold storage and 5% in hot wallets that are insured by Aon.
Since FDIC insurance doesn’t apply to digital assets, your deposits are not directly insured on BlockFi. Fortunately, Gemini has its own insurance for its deposits, so your assets are covered.
Who Founded BlockFi?
Zac Prince is BlockFi’s CEO and Founder. He started his career in adtech and was a critical piece in two rewarding acquisitions, one by Google and the other by DunnHumby.
He transitioned into fintech after a short stint with Google and led business development teams at Orchard Platform and Zibby, which both specialize in online lending.
After years of investing in crypto, Zac started BlockFi to enable people to do more with their digital assets. He experienced friction when applying for loans because his crypto assets weren’t being considered as collateral. So, he built a product that fixed this problem.
Zac co-founded the company with another person looking to improve the traditional banking industry.
Flori Marquez grew up in Argentina, a country lacking the banking services found in the US, and realized that crypto payments had the potential to solve her country’s financial obstacles.
Zac and Flori decided to fix problems that affected them personally, leading to BlockFi’s creation. Fortunately, they decided to share their solutions with the world.
Who is Funding BlockFi?
BlockFi closed its Series A, B, and C funding all in a period of 12 months. They are backed by the biggest names in the crypto ecosystem, including Winklevoss Capital, Anthony Pompliano’s Morgan Creek Digital, Peter Thiel-backed Valar Ventures, and even NBA player Matthew Dellavedova.
BlockFi’s seen its revenue 10x over the past year and is projecting $100M in revenue over the next year.
What’s Next for BlockFi?
The Bitcoin Rewards card will send waves through the crypto and legacy finance industry. It will allow the bulls to double down on their confidence and enable newcomers to passively to start investing in Bitcoin.
Giving rewards in the form of Bitcoin offers an easy entry point for consumers on the fence about crypto.
But BlockFi’s innovation will not stop with a credit card. They are determined to bring digital assets to the mainstream by building products that are easy to use and understand.
BlockFi will continue to optimize its existing products and focus on making their mobile app the ultimate user experience.
Bottom Line: BlockFi Bitcoin Rewards Credit Card Review
BlockFi’s Bitcoin Rewards Credit Card is redefining the financial marketplace. They are capitalizing on the growth of Bitcoin and crypto and are enabling consumers to do more with their digital assets.
Now that you know what BlockFi is about, we encourage you to get started today. Open an account here to start using all the amazing products that BlockFi offers.
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