Bitcoin rewards trigger a shopping frenzy for cardholders: BlockFi data

Bitcoin (Bitcoin) The result is more attractive than airline miles or other cashback rewards, new data from BlockFi shows.

Three months have passed since the New York-based crypto lending startup launched its Visa-supported bitcoin rewards credit card, BlockFi Rewards Visa Signature credit card, to customers. The card provides bitcoin rewards instead of using the more traditional points system.

According to the company, if Bitcoin rewards card holders continue to maintain the shopping habits of the previous three months, they will be expected to spend On average, more than 30,000 US dollars per year. This is almost six times the average US$5,111 per cardholder in the United States.

BlockFi co-founder and CEO Zac Prince told Cointelegraph: “The fact that cardholders spend more than US$2 billion annually strengthens BlockFi’s mission to provide customers with a wider range of financial products and services so that they can better Easily invest in cryptocurrencies.”.

BlockFi stated that its Bitcoin reward card has more than 50,000 owners in all 49 states, excluding New York, and the card cannot be used. California accounts for more than 20% of total expenditures, while Washington, DC, California, Texas, and Florida are the states with the highest expenditures.

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In the first three months of the program, cardholders received a total of more than 124 BTC rewards, of which Costco, Amazon and Home Depot were the top three merchants. Consumer behavior ranges from daily purchases (such as groceries, utilities, and home improvement projects) to more important purchases.

The announcement read: “For Bitcoin supremacists, Compass Mining has always been the top merchant who wants to earn more Bitcoin from their home mining equipment.”

The BlockFi card can be used wherever Visa is accepted, and its owner can earn 1.5% of the original cryptocurrency at an introductory interest rate of 3.5%. Due to Bitcoin price changes, cardholders who pay rewards at an introduction rate of 3.5% are more effective than 4.25%. The BlockFi team explained to Cointelegraph that customers who got the standard 1.5% return also got 1.8% efficiency.