Crypto Rewards: Putting Your Hard-Earned Money to Work (for Bitcoin) Written By Philip Matteini
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onsumers can use cryptocurrencies to purchase more items than ever in today’s market. Private businesses, municipal governments, and other entities have begun accepting digital assets as forms of payment, an increasingly attractive option with rising inflation rates. While there are a few circumstances in which utilizing cryptocurrency as a form of payment might make sense, it remains impractical in most cases. Cryptocurrency markets are notoriously volatile. In other words, the price one might pay for an item one day may not be what that same purchase is worth the next. Further, most companies experimenting with crypto payments, particularly in the retail space, only accept Bitcoin—this limits consumers that elect to invest in other cryptocurrencies.
Nonetheless, Americans and foreign consumers alike are intrigued at how crypto might work as a payment method. According to a recent study by PYMENTS. com, nearly 20% of American adults indicate they’re likely to make a purchase using cryptocurrency. Crypto payments provide an alternative transaction method for individuals without the necessary requirements to open a bank account or access traditional financing. It provides for an increased speed of transaction in unique cases (e.g., high-value, international transactions) and a greater level of anonymity in comparison to the U.S. dollar. Still, the short-term price volatility of Bitcoin and other crypto assets render it ineffective as an electronic cash system. As Ollie Leech, Learn Editor at CoinDesk, said: “No person in their right mind would want to buy a coffee with Bitcoin. Say you pay $3 for [a] coffee, and tomorrow your Bitcoin could be worth $30.” Just one year ago, Bitcoin’s (BTC) value was under $10,000. Since then, it’s been priced as high as $65,000 and as low as $29,000. In an attempt to bridge the gap between cryptocurrency investing and the modern consumer experience, BlockFi, a New York City-based financial institution, released its crypto rewards Visa Card in the summer of 2021.Gaurav Gollerkeri, BlockFi’s GM of Payments, described the typical credit card experience as “entirely uneventful.” This, according to Gollerkeri, is directly juxtaposed by BlockFi’s crypto rewards offering, which garnered nearly 400,000 waitlist sign-ups
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