Hey, there friend!
How was your weekend?
Have you heard about the latest trend in credit card rewards? It's crypto rewards! Yes, you read that right, you can now earn cryptocurrency as a reward for using certain credit cards.
In the past, credit card rewards were given out in points, miles, or cash back, but now cryptocurrency is joining the party thanks to the launch of several new rewards credit cards over the last few years. The process is pretty straightforward, similar to a traditional cash-back program. You earn a percentage of your purchases back in U.S. dollars, which is then used to buy crypto, usually automatically.
Initially, the appeal of crypto credit cards was the "high risk, high rewards" aspect of crypto investing. Cardholders believed they could earn cash back with a crypto credit card, move their rewards into an active digital currency, and grow their rewards haul exponentially as the value of their crypto exploded. However, we now know that the value of many cryptocurrencies has plummeted, and even the most popular types of crypto are down considerably from all-time highs.
Despite this, the case for crypto rewards cards is that the value of crypto has the potential to increase, unlike other types of rewards currencies. People who want to invest in crypto but don't have the cash to do so can get started with a crypto credit card and begin building their digital assets by using their cards for regular spending and bills.
The Upgrade Bitcoin Rewards Visa® Credit Card is a perfect example of how this could work. This card rewards its customers with 1.5 percent cash back in Bitcoin as they pay off their purchases. Imagine using this card for $2,000 per month in regular spending and bills over the course of a year, and paying off the entire $24,000 in balances as you go. In this scenario, you could earn $30 in Bitcoin per month or $360 in Bitcoin over 12 months.
With a regular rewards card, that $360 in cash back wouldn't have the potential to grow in value. But let's say the value of Bitcoin increased 20 percent over the year you had the card. In that case, your $360 rewards haul would be worth $432. And if the value of Bitcoin increased by 50 percent, your reward value would be $540! Pretty cool, right?
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