If you have Bitcoin and it makes sense for you to use it for everyday transactions and not only as a store of value, you might consider a Bitcoin debit or credit card. You could swipe your card and complete the transaction with the Bitcoin you have in your wallet. As Bitcoin value rises, traditional payment networks embrace the technology, and the list of Bitcoin credit and debit card options grows.
Bitcoin Credit Cards
Soon-to-be-released Bitcoin credit cards will function like familiar rewards credit cards, but instead of miles or cash back, these cards will offer Bitcoin as rewards for credit card purchases. You might have a higher value of getting your rewards in Bitcoin as opposed to cash. This is because overall, the value of Bitcoin has tended to appreciate. However, it also experiences a great deal of volatility, which means its value at any given moment is unpredictable.
BlockFi
BlockFi introduced the first Bitcoin credit card, paying 1.5% cash back on purchases that BlockFi then converts to bitcoin. The reward increases to 2% after you’ve spent $30,000 in a year and resets to 1.5% on your card anniversary. You can also earn rewards for referring friends and purchasing other crypto assets. The card charges no annual fee.
Gemini
A second Bitcoin card, the Gemini Credit Card, has a waitlist for its 2021 release. Gemini cardholders will earn up to 3% back in crypto on every purchase, with no annual fee. Rewards can be sent to the digital wallet of your choice with no exchange fees.
Bitcoin Debit Cards
While Bitcoin credit cards aren’t quite ready for consumer use, there are a handful of Bitcoin debit cards available, including:
Coinbase Fold Card Bitpay Cash Card
To use a Bitcoin debit card, you’ll need to open a Bitcoin wallet. Next, connect your Bitcoin debit card to your Bitcoin wallet. Then, you can use your debit card anywhere that you’d use a bank debit card. Backing by a major processing network would give purchases the same zero liability for fraud as regular credit card purchases when the card is used as credit. There may be fees associated with Bitcoin debit cards similar to what you’d pay with a prepaid card. For example, you may pay withdrawal, transaction, or monthly account fees with a Bitcoin debit card. Keep in mind that since the price of Bitcoin fluctuates, the amount of Bitcoin needed to complete a transaction can fluctuate, even within a single day. It’s important to keep track of the amount of currency you have in your Bitcoin wallet in Bitcoin and in U.S. dollars so you know whether you have enough to complete the transaction. Whenever you use Bitcoin, whether with a credit card or a debit card, use caution. Cryptocurrency is a volatile asset and there is still a lot to be done to regulate it and ensure it’s safe from scams and fraud.
A Quick Look at Bitcoin
The price of a single Bitcoin constantly fluctuates, based on market bidding (similar to stocks, gold, and foreign currencies). Bitcoin topped $64,000 in November 2021, surging past the previous high of $19,650 set in December 2017. What makes Bitcoin unique is that the Bitcoin network—where Bitcoin is transferred—isn’t controlled by any person or company but rather by a decentralized network of computers. A record of all Bitcoin transactions is stored on the computers of every person who helps verify Bitcoin transactions. Bitcoin are stored in a digital wallet that has a unique ID. To send Bitcoin to another user, that person must send you a unique address generated by the currency exchange platform. You’d then copy the address into your Bitcoin exchange platform, enter the amount, and send.
