topic Re: Is BlockFi card worth it in Credit Cards

Is BlockFi card worth it

Red1Blue — Tue, 03 Aug 2021 05:59:39 GMT

I applied for the BlockFi card. But my EX Credit Report is frozen. They asked me to unfreeze my report and continue with my application. I am in the gardening mode. I am debating if should continue with the App or wait for a year and then apply. Some of baddies should drop off in a year and report should look clean. When the clouds clear all I want to do is only get 1 new card. I am wondering if BlockFI is the right card and if I should apply now or wait for a year or completely pass it.

Re: Is BlockFi card worth it

hawkins — Tue, 03 Aug 2021 18:52:10 GMT

The app works like Apple Card in that they do a SP and come back with a SL and APR that you can accept in which case it will be a HP on EX or decline. If you really want this in my opinion you have nothing to lose.

Re: Is BlockFi card worth it

dragontears — Tue, 03 Aug 2021 19:42:10 GMT

It is not worth it for me.

Only you can determine if it is worth it to you. Just how committed are you to avoiding new accounts?

Re: Is BlockFi card worth it

dogmeat — Wed, 04 Aug 2021 01:16:49 GMT

I signed up for the waiting list for this card and recently was invited to apply, so thanks for asking this question because it made me look into it a bit more.

My initial feeling was, "1.5%. Meh. At $25K spend I'll get like $325/yr in $BTC, and I can just use a 3-5% card instead and buy $BTC directly if that's what I really want. Probably pass."

But then I decided to plug some numbers into a compound-interest rate calculator, just for fun, and my sentiment changed a little.

$BTCs average annualized rate of return since inception is something just under 200%, I believe. If you happen to believe that trend will continue, even with a more conservative return of say, 99% annually, then you're looking at a 10-year compounded value of about $236,000 for each $20-increment in monthly rewards you earn. Said another way, that's for each $1333/mo-increment you spend on the card. If you spend $2666/mo, your 10-year value is $472,000, at $4000/mo, your 10-year value is $708,000. Someone please check my math if things don't look right.

So those are some pretty impressive numbers for 10-year rewards value. Of course you could still just use a 3-5% card and buy $BTC monthly, and get a better deal. The real benefit, then, for me, would be a secure and frictionless $BTC rewards-as-savings system. The secure part would necessitate that the $BTC rewards could be transferred to the wallet address of my choice with some kind of regularity. The frictionless part would require this happen automatically. I don't want any human interaction here other than initial setup - set it and forget it. And, I don't know if this is actually the case: it's really hard to find details online about exactly how those rewards are given, who's wallet they're stored in (BlockFi's?) and whether automatic periodic withdrawal is supported.

If it were the case that this was supported, I could see setting up a private wallet, doing whatever multi-sig or split-key-in-half security mechanism you think is appropriate, and store the key (halves) in a (separate) safe deposit box(es), and forget about it for 10 years.

Then the big remaining question would be, do I sacrifice all my fun travel-rewards earning for the next 10 years, and put everything on the BlockFi card, or do I treat it just like an AOD card for my non-category spend.

Bottom line: used as a secure, frictionless (if supported), long term rewards-as-savings approach I believe this card has tremendous potential. It's like auto-DCA'ing into $BTC monthly for a term of your choice. Outside of that use case, it's a little meh.

OP, would like to hear your thoughts.

Re: Is BlockFi card worth it

Citylights18 — Wed, 04 Aug 2021 04:59:18 GMT

As someone who is an active crypto trader you don't want to underestimate the possibility of a particular coin losing its appeal.

Bitcoin could become of less interest to investors over time as new coins are created. Their coin market cap dominance has dropped below 50% from over 70% at the beginning of 2021.

I'm trying the Coinbase debit card right now and earning 4% XLM rewards with it. Currently I'm down 0.35% on my rewards after being up a few percent for a while. The 4% is pretty solid and works for all merchant categories outside of municipal payments and gambling. The projection is the price will roughly double in 3 years so you're effectively getting much more than 4% over the long haul.

https://tradingbeasts.com/price-prediction/stellar

Bitcoin in contast is only projected to increase 25% within that timeframe plus they only give you 1% or 1.5% as in the case of Block Fi.