Instead of utilizing a conventional points based system, the card pays out in Bitcoin as a reward. As per the business, the typical user of a Bitcoin rewards card would spend over $30,000 per year if their purchasing habits remain the same as they were in the initial three months.
This is more than six times the US average per cardholder of $5,111. According to BlockFi Co-founder and CEO Zac Prince, “the notion that cardholders are racing towards nearly $2 billion in yearly expenditure supports BlockFi’s goal to offer customers with wider access to financial goods”
With the exception of New York, where the card is not accessible, BlockFi’s Bitcoin rewards card now has over 50,000 users throughout all 49 states, the company claimed. Washington D.C., California, Texas, and Florida are the states with the greatest expenditures, each with more than 20% of overall expenditures.
During the initial three months of the program, cardholders have accumulated over 124 BTC in incentives, with the top three retailers being Costco, Amazon, and Home Depot. Spending habits vary from little, daily expenditures like groceries and utilities to larger, one-time expenses like car repairs or house renovations.
When it comes to people who want to earn the most bitcoin from their home mining rigs, Compass Mining has long been a go-to vendor. BlockFi’s card, which can be used wherever Visa is accepted, allows cardholders to earn 1.5 percent of their initial bitcoin back over the course of a three-year promotional period.
As a result of Bitcoin’s price fluctuations, cardholders who received rewards at the initial rate of 3.5% have had their incentive pay rate increase to almost 4.25%. In addition to receiving the usual 1.5% back, BlockFi customers were obtaining a 1.8% effective rate.