- Crypto credit card holders are moving away from traditional credit cards in favor of crypto rewards credit cards such as BlockFi’s Visa and Crypto.com’s Visa.
- 46% of crypto credit card holders plan to make every purchase with their crypto credit card.
- 80% of crypto credit card holders believe Bitcoin will replace traditional credit cards.
Times Are Changing
Whether you’re an absolute newbie to the digital currency space or a seasoned aficionado, you’ve probably heard talk about how crypto may soon take over how we handle money. Given these speculations and cryptocurrency’s popularity, we thought it would be beneficial to examine how this might impact one of the most common ways Americans manage theirs: reward credit cards.
How would most people feel about receiving crypto rewards instead of traditional cash back on their credit purchases? We surveyed 1,016 crypto credit card holders of all generations about their views towards crypto rewards credit cards. We also researched which companies are on board with such reward programs to help you decide whether crypto rewards credit cards are a solid investment or not.
You Say Rewards, We Say Bitcoin
Bitcoin is the most popular cryptocurrency right now, but how many crypto credit card holders would choose it as a credit card reward? We’ve gathered data on which crypto rewards seem the most enticing.
It’s hard to imagine consumers preferring a different currency from the traditional U.S. dollar. But apparently, many of them do!
We found that Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) are the most preferred cryptocurrency reward coins among our study’s respondents. This is understandable, since these are some of the most valuable: Since 2016, BTC has grown by more than 5,800%, with a single bitcoin now worth $29,700. This may be why 80% of the crypto credit card holders we asked strongly agree that BTC will replace credit cards.
There are many potential benefits to replacing credit cards with bitcoin, but safety and speed are the most noteworthy. We all know how long those credit card transaction fees can take to clear, and don’t even get us started on the snail-speed of processing payments.
As the digital currency space expands, many people would be content to accept varying types of crypto rewards from their credit card companies. This includes Non-fungible tokens (NFTs) - cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. We found that 95% of our study’s crypto credit card holders are interested in receiving NFTs as a crypto credit card reward.
So, how might crypto credit card holders plan on using these crypto rewards?
Purchasing and Investing With Your New Card
If you’re considering getting a crypto rewards credit card, it’s important to understand how it works. We looked into what crypto credit card holders plan to purchase with their cards, which kinds of crypto rewards cards they use, and other valuable information you’ll want to know.
Most top crypto rewards credit cards provide digital cash back when you dine out, get groceries, or buy those concert tickets you’ve been eyeing. Among the Americans we surveyed, the most popular crypto rewards credit card is the BlockFi Rewards Visa, which 40% of them currently use. That’s understandable since it offers over ten types of cryptocurrency rewards - a perk for all you anti-bitcoiners! Crypto.com’s Visa came in at a close second, with some cards enabling users to earn up to 5% back in crypto rewards.
We were surprised to learn how many are prepared to fully make the switch to a crypto rewards card. According to our survey, 46% of crypto credit card holders plan to make every purchase with their crypto credit card. It’s a good thing, then, that many of them plan to spend their cryptocurrency rewards wisely: 60% of respondents intend to reinvest their crypto rewards balance back into cryptocurrency.
Buying a high-tech credit card sounds exciting, but there are some drawbacks. Beware of pesky credit card fees that can detract from your crypto investments. You also might have to deal with higher interest rates if you deposit your crypto rewards through your credit card. Before jumping on this new trend, read on for some other aspects to consider.
Embracing the Benefits With Caution
Before following a trend, looking at the positives and negatives is always beneficial. Our survey offers a balanced view between the most attractive features of crypto credit cards and their not-so-fun consequences so that you can make an empowered choice as a consumer.
According to respondents, the ability to save and invest simultaneously is the most attractive feature of a crypto rewards credit card. They also appreciate the minimum credit score requirement needed to qualify for a card and the attractive introductory offers.
But one significant disadvantage is cryptocurrency’s notorious volatility, with its value often fluctuating based on bidding values. Although participants are optimistic (92% believe the price of bitcoin will increase within the next six months, and overall, they expect the value of a single bitcoin to nearly double to $60,000 by 2030), the uncertainty of how their value might change makes investing in crypto reward balances risky. A long-term investment strategy (maintaining an investment for at least six months to a year) may mitigate that risk.
Changing With the Times
Though crypto rewards credit cards are a new phenomenon, digital currency is here to stay. Crypto might seem like a whole new world, and it practically is - the terminology can be confusing, especially if you’re bringing credit cards into the mix. But that shouldn’t stop you from exploring its vast potential.
Like traditional credit cards, crypto rewards credit cards provide various benefits and features. Whether you plan to use your card for only a few purchases or everything you lay your eyes on, it’s helpful to know what you can do with the rewards you earn. According to previous trends, bitcoin and other digital currencies will likely keep increasing in value. By learning about these new advancements, you’re informing yourself to make the best investing and purchasing decisions for your goals.
We surveyed 1,016 crypto credit card holders about their sentiments toward cryptocurrency credit card rewards. The mean age of respondents was 38 years old. Among them, 55% were male, and 45% were female. Respondents comprised the following generational breakdown: 27% Gen Z, 30% Millennials, 32% Gen X, and 11% baby boomers.
To help ensure that all respondents took our survey seriously, they were required to identify and correctly answer an attention-check question. Survey data has certain limitations related to self-reporting. These limitations include telescoping, exaggeration, and selective memory.
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