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- In 2021, points and miles aren’t the only things you’ll be able to earn for your spending; Bitcoin is splashing into the rewards space.
- The two early entrants are a credit card from BlockFi and a prepaid card from Fold with different structures for earning.
- If you’re wary of actually buying Bitcoin, this might be your route to getting involved without dealing with crypto exchanges and fees.
- Read Business Insider’s guide to the best rewards credit cards.
If you’re like me, you’ve seen Bitcoin valuation surges and kick yourself for not buying it in 2015. Then, a day later, you read headlines of the potential for a crash in Bitcoin valuation and feel okay about avoiding the Wild West of cryptocurrency.
However, that unexplored territory is becoming a bit tamer – or at least more mainstream. In recent months, PayPal has unveiled the ability to buy, hold, and sell Bitcoin, and Fidelity has launched a Bitcoin investment fund. Now, Bitcoin is coming for something everyone loves: The rewards on the cards you carry in your wallet.
A debit card that earns Bitcoin rewards
“The rewards industry has not really innovated since the inception of airline miles,” Will Reeves, CEO of Fold, says. “It’s very ingrained in how people use their cards.”
Reeves is part of a cast of financial disruptors who are aiming to make crypto part of everyone’s wallet. His company has already started, too. A few thousand people are using the Fold card. It’s a prepaid debit card, and while traditional debit cards don’t offer compelling rewards, Fold marks a major departure from “tradition.” Cardholders earn small fractions of Bitcoin — called Satoshis in reference to Satoshi Nakamoto, the individual who founded Bitcoin, also known as “sats” — for their spending.
You might know exactly what you’ll earn on each purchase with your current favorite card in your wallet, but Reeves says that the Fold card aims to “gamify the entire experience.” Users swipe their cards to pay for purchases with their pre-loaded funds, then receive a push notification on their phones to open up a spin wheel with eight different prizes.
Those prizes change every week, and they include options like a 1,000-sat bonus, a 10% boost in a select category of spending, and winning one full Bitcoin. “Sometimes you’re going to win big,” Reeves says. “Sometimes you’re going to win small. We average out to 3% rewards on all spend going through the platform.”
The fun element of a Wheel of Fortune-style game approach isn’t the only exciting piece of the card — it’s the earning potential. Reeves highlights that Bitcoin “has been the best-performing asset of the last…