New BlockFi data shows that Bitcoin (BTC) is a much more attractive premium than airlines or other cashback rewards.
It’s been three months since the New York-based cryptocurrency lending company launched its Visa-supported Bitcoin credit cards and BlockFi Rewards Visa Signature credit cards to customers. The card provides bitcoin rewards instead of using the more traditional points system.
According to the company, if the average Bitcoin Rewards Card holder continues to stick with this habit for the first three months, they will spend more than $ 30,000 a year on average. This is nearly six times the US average of $ 5,111 per cardholder.
“The fact that the cardholder generates over $ 2 billion in annual spending reinforces BlockFi’s mission to provide customers with greater access to financial products and services that make it easier for them to invest in cryptocurrencies,” BlockFi founder and CEO Zach Prince told Cointelegraph. …
BlockFi reported that Bitcoin’s reward card has grown to over 50,000 holders in all 49 states with the exception of New York, where the card is not available. California accounts for more than 20% of total spending, followed by Washington, DC, California, Texas and Florida.
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Cardholders raised over 124 BTC in rewards collected during the first three months of the program, with Costco, Amazon and Home Depot making the top three. Consumer behavior ranges from everyday purchases such as groceries, tools and repairs to more important purchases.
“For Bitcoin, Max Compass Mining has been one of the best traders for those looking to make more bitcoins from their mining rigs,” the statement said.
The BlockFi card is available for use wherever Visa is accepted and allows holders to earn 1.5% of the original cryptocurrency at an initial rate of 3.5%. Due to bitcoin price fluctuations, cardholders who were pre-rewarded 3.5% received an effective interest rate of over 4.25%. The BlockFi team explained to Cointelegraph that customers who received a reference price of 1.5% also received an effective rate of 1.8%.