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BlockFi is a financial platform that provides investors with access to cryptocurrencies. It was founded in 2017 and is one of the first companies to offer cryptocurrency-backed loans and other financial products. Users can borrow, invest, and earn interest on their cryptocurrencies such as Bitcoin, Ethereum, and more. This is a great tool that will provide the comfort of playing in no account casino uk 2023 with payment in cryptocurrency.
In collaboration with Visa, BlockFi introduced a crypto cashback credit card in 2021. This has ushered in a new era for credit cards and cryptocurrency finance.
Analysis of Crypto Credit Cards
Like any new innovation, crypto credit cards have their advantages and disadvantages.
Advantages of Crypto Credit Cards
- New Source of Crypto Earnings: For individuals looking for new ways to earn cryptocurrencies, these credit cards can be enticing. Instead of buying cryptocurrencies, you can earn them by spending money on everyday purchases.
- Potential Profits from Crypto Price Appreciation: If the price of the cryptocurrency you earn cashback in increases, your cashback becomes more valuable.
Challenges of Crypto Credit Cards
- Cryptocurrency Volatility: The main challenge is the volatility of cryptocurrencies. The price of Bitcoin and other cryptocurrencies can fluctuate significantly every day, which can result in the loss of value of your cashback.
- Difficulty in Cashing Out: Not all places accept cryptocurrencies, and it can be challenging to cash out or use them for purchases.
Visa’s Crypto Cashback with BlockFi: Is it Worth Considering?
Now that we have discussed the pros and cons of crypto credit cards in general, let’s evaluate the specific offer of cashback in cryptocurrency from Visa in collaboration with BlockFi.
BlockFi offers a crypto cashback credit card that earns 1.5% back in Bitcoin on every purchase and increases to 2% after reaching $50,000 in annual spending. Additionally, new cardholders can earn up to £100 in crypto during their first three months of using the card. The BlockFi Rewards Visa Signature Credit Card does not charge an annual fee or foreign transaction fees.
It’s important to consider several factors when assessing the value of this offer:
Crypto Market Volatility:
As mentioned earlier, cryptocurrencies can be highly volatile. The value of the cashback you earn in Bitcoin can fluctuate significantly, impacting its overall worth.
Ease of Use:
BlockFi’s credit card integrates with its existing platform, providing a seamless experience for users. You can manage your crypto assets, credit card rewards, and other financial services in one place.
Fees and Costs:
While the BlockFi Rewards Visa Signature Credit Card does not charge an annual fee or foreign transaction fees, it’s crucial to understand the other fees associated with using BlockFi’s services. These may include withdrawal fees, trading fees, and administrative fees.
Security and Regulation:
BlockFi is licensed and regulated, which provides some level of security. However, it’s important to note that cryptocurrencies are not protected by the Financial Services Compensation Scheme (FSCS) in the UK. Therefore, there is no guarantee of reimbursement in the event of any losses or failures on the platform.
Considering these factors, individuals in the UK should evaluate their risk tolerance, familiarity with cryptocurrencies, and personal financial goals before deciding whether the crypto cashback offer from Visa and BlockFi is a beneficial proposition.
Conclusion
while the concept of earning cashback in cryptocurrency may seem enticing, it is essential to consider the risks and challenges associated with the volatility of cryptocurrencies. Additionally, individuals should carefully assess the terms and conditions, fees, and security measures provided by BlockFi before deciding to participate in their crypto cashback credit card program. Ultimately, the decision to pursue this offer should align with one’s personal financial objectives and willingness to embrace the world of cryptocurrencies.
