Bitcoin (BTC) is proving to be a much more attractive price than airline miles or other cashback rewards, new data from BlockFi shows.
It’s been three months since the New York-based crypto credit startup launched a Visa-backed Bitcoin credit card, the BlockFi Rewards Visa Signature Credit Card, for customers. The card offers rewards in Bitcoin instead of using a more traditional points system.
If the average Bitcoin reward card holder continues their shopping habits for the first three months, they’ll spend an average of more than $ 30,000 a year, according to the company. That’s almost six times the average of $ 5,111 per cardholder in the US
“The fact that cardholders are heading for over $ 2 billion in annual spending reinforces BlockFi’s mission to provide customers with broader access to financial products and services that enable them to get into crypto more easily,” said BlockFi co-founder and CEO Zac Prince Cointelegraph.
BlockFi says its Bitcoin reward card already has more than 50,000 holders in all 49 states except New York, which doesn’t have a card. California accounted for more than 20% of total spending, while Washington DC, California, Texas, and Florida followed as the highest spending states.
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Cardholders accumulated over 124 BTC in shared rewards in the first three months of the program, with Costco, Amazon, and Home Depot being the top three merchants. Spending behavior ranges from everyday purchases like groceries, utilities, and home improvement projects to making major purchases.
“For Bitcoin maximalists, Compass Mining has become the leading retailer for those who want to earn even more Bitcoins with their home mining rigs,” the announcement said.
BlockFi’s card can be used anywhere Visa is accepted and allows its holders to get back 1.5% of their original cryptocurrency with a recommendation rate of 3.5%. Due to the price volatility of Bitcoin, token holders who were paid a bonus with a recommendation rate of 3.5% generated a 4.25% more effective rate. The BlockFi team told Cointelegraph that customers who earn 1.5% back to standard also get an efficiency rate of 1.8%.