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Owners of the Visa-backed Bitcoin rewards card amassed over 124 BTC over the course of 90 days, according to BlockFi data.
According to new BlockFi data, Bitcoin (BTC) is a far more appealing prise than airline miles or other cashback rewards.
It’s been three months since the New York-based crypto loans startup issued its Visa-backed Bitcoin rewards credit cards, the BlockFi Rewards Visa Signature Credit Card. Instead of using a traditional points system, the card offers rewards in Bitcoin.
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 announced that its Bitcoin rewards card has reached 50,000 owners in all 49 states, with the exception of New York, where the card is not available. California accounts for more than 20% of total spending, with Washington, D.C., California, Texas, and Florida following as the highest spending states.
During the first three months of the programme, cardholders earned more than 124 BTC in rewards, with the top three merchants being Costco, Amazon, and Home Depot. Spending habits range from everyday purchases such as groceries, utilities, and home improvement projects to larger 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.