Bitcoin rewards triggered shopping frenzy for cardholders: BlockFi data

Bitcoin rewards triggered shopping frenzy for cardholders: BlockFi data

Bitcoin (BTC) turned out to be a far more attractive prize than airline miles or other cashback rewards, new data from BlockFi suggests. 

It’s been three months since the New York-based crypto loans startup launched its Visa-backed Bitcoin rewards credit cards, BlockFi Rewards Visa Signature Credit Card, to customers. The card offers rewards in Bitcoin instead of using a more traditional points system.

Our top trading bots

According to the company, if the average Bitcoin rewards card owner continues the shopping habit seen in these first three months, they'll be on track to spend more than $30,000 per year on average. This is almost six times the average of $5,111 per cardholder in the United States.

“The fact that cardholders are pacing towards over 2 billion dollars in annualized spend reinforces BlockFi’s mission to provide clients with broader access to financial products and services that allow them to invest in cryptocurrency more easily,” BlockFi Co-founder and CEO Zac Prince told Cointelegraph.

BlockFi said its Bitcoin rewards card has grown past 50,000 owners across all 49 states, excluding New York, where the card is not available. California accounts for over 20% of total spending while Washington D.C., California, Texas and Florida follow as the highest spending states.

Related: AMC Theatres debuts crypto payments for e-gift card purchases

Cardholders have amassed more than 124 BTC in rewards collectively during the program’s first three months, with Costco, Amazon and Home Depot being the top three merchants. The spending behavior ranges from everyday purchases like groceries, utilities, and home improvement projects to more significant purchases.

“For the Bitcoin maximalist, Compass Mining has been a top merchant for those who want to earn even more bitcoin from their home mining rigs,” the announcement reads.

Available to use anywhere Visa is accepted, BlockFi’s card enables its owners to earn 1.5% back in the original cryptocurrency with an introductory 3.5% rate. Due to the price movements of Bitcoin, cardholders who were paid out rewards at their 3.5% intro rate made an effective rate of over 4.25%. Customers earning the standard 1.5% back were also getting a 1.8% effective rate, the BlockFi team explained for Cointelegraph.

Read on about Cointelegraph
US lawmaker is most concerned about Treasury's response to crypto
Wyoming Senator Cynthia Lummis said the Treasury Department may be more of a threat to innovation in blockchain and cryptocurrencies in the United States...
South Africa's financial regulator issues warning against Binance
South Africa’s Financial Sector Conduct Authority (FSCA) has warned the country’s public against dealing with crypto exchange platform Binance.In a statement...
Alchemy Pay to launch virtual crypto cards with Visa and Mastercard support
Hybrid crypto-fiat platform Alchemy Pay announced Monday that the company would be launching virtual crypto-linked cards accepting more than 40 cryptocurrencies...
Bitcoin Tops $46,000 as Bulls Eye Positive Progress on Crypto Tax Bill
By Yasin EbrahimInvesting.com – Bitcoin surged to top $46,000 Monday, as crypto investors cheered news that U.S. lawmakers have reached a compromise on...
The biggest challenge for crypto exchanges is global price fragmentation
It’s no secret that Coinbase has played an instrumental role in bringing new users into the crypto space. Coinbase’s friendly onboarding process and status...
Nifty News: NFTs in space, defunct CryptoPunks, Ernst & Young gets in on the act
One small step for NFTs...Two companies teamed up to stream a recording of composer Claude Debussy’s “Clair de Lune” to, and from, the International Space...
U.S. SEC Chair Gensler calls on Congress to help rein in crypto 'Wild West'
By Katanga JohnsonWASHINGTON (Reuters) -The chair of the U.S. Securities and Exchange Commission (SEC) on Tuesday called on Congress to give the agency...
The NFT bubble may have popped, but the sector is still primed for expansion
Nonfungible tokens (NFTs) took the world by storm in March and April of this year with an onslaught of daily headlines about record-breaking sales and big-name...
Cardano leads tepid crypto market recovery ahead of Memorial Day
Cardano’s ADA cryptocurrency was back in the spotlight Sunday, leading a tepid market recovery following news that the developer network was inching closer...
Bitcoin struggles for footing on worries over China, leverage
By Stanley White and Vidya RanganathanTOKYO (Reuters) -Bitcoin regained some ground on Thursday from the previous session's brutal slide to four-month lows...
Walking on sunshine: Top crypto summer vacation destinations in 2021
Even though the ongoing coronavirus pandemic has yet to fully recede, an increasing number of countries are beginning to open up their borders to tourists...
Fantom surges 52% following network upgrade
The token of smart contract platform Fantom, FTM, was subject to a 52% price increase leading into Thursday morning following the successful implementation...
Altcoins move to new all-time highs while Bitcoin struggles below $60K
According to data from, Bitcoin’s (BTC) Q1 2021 performance was the best since 2013. With strong tailwinds, Bitcoin now enters Q2 which historically has...
3 reasons why StormX (STMX) price has rallied 2,800% in 2021
Cashback rewards for purchases have long been a popular tactic used by banks and credit card companies to entice consumers to use their services.Several...
BTC Survived Regulatory Tension, Hardening After a Week-Long Sinking
Last week was a week of turmoil for bitcoin as it went through the period of plunging from January 8 to January 11 but managed to somehow recover before...