BlockFi Crypto Card Owners Spend Big, Data Reveals
Market Musings

BlockFi Crypto Card Owners Spend Big, Data Reveals

1 month ago
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The typical card owner is set to spend more than $30,000 on these cards this year — 450% more than the average amount of $5,000 spent on conventional cards from AmEx and Mastercard.

BlockFi Crypto Card Owners Spend Big, Data Reveals

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BlockFi has released some fascinating statistics concerning how its Bitcoin rewards credit card has been used since launch. 

The company claims that, based on data accrued over the past three months, the typical card owner is set to spend more than $30,000 on these cards this year — 450% more than the average amount of $5,000 spent on conventional cards from AmEx and Mastercard.
Growth projections also indicate that spending on BlockFi cards is expected to hit $2 billion within the first year of operation.

BlockFi’s CEO and co-founder Zac Prince said the launch had been an “incredible success,” adding:

“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 and, in the longer term, possibly set them on a path to build generational wealth.”

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Crunching the Numbers

BlockFi’s figures reveal that it has now onboarded more than 50,000 cardholders — and in total, they have amassed over 120 Bitcoin in rewards. At current rates, that’s the equivalent of $6.8 million.
The company believes that the prospect of receiving BTC rewards is compelling because of its potential for price growth in the future — noting that if a consumer had earned $100 worth of Bitcoin in 2017, it would now be worth a cool $4,000.

Crypto rewards could also be appealing for people who want to gain exposure to Bitcoin without purchasing it directly.

Overall, BlockFi’s data shows that Costco, Amazon and Home Depot are the most popular places where its reward cards are used — and the largest transaction seen to date involved more than $20,000 that was spent at Tiffany’s. 

Although this information certainly is insightful, some users may be feeling nervous that their transaction data can end up being used for promotional purposes.

Indeed, the likes of Spotify, Tinder and Netflix have all landed themselves in hot water for using these marketing tactics before.

In 2017, Netflix was criticized for mentioning that 53 people had watched A Christmas Prince for 18 days straight, accompanied with the brutal caption: “Who hurt you?”