cancel
Showing results for 
Search instead for 
Did you mean: 

Waitlist for BlockFi credit card (issued by Evolve Bank) is now open

Brian_Earl_Spilner
Community Leader
Mega Contributor

Re: Waitlist for BlockFi credit card (issued by Evolve Bank) is now open


@sammydavidjr wrote:

@Brian_Earl_Spilner wrote:

Sooo...what happens when all the bitcoins are mined? 


BlockFi doesn't mine Bitcoin, they just buy it and give to people as cashback.

What I find insane about this credit card is the $200 annual fee. Unless there are unannounced perks, it makes a lot more sense to use a 2% cashback card with no annual fee (Paypal, Fidelity, etc.) and buy Bitcoin with the cashback than to use this BlockFi product.


There's still a finite amount and they would rely on there being enough sellers to provide the rewards. If there's nobody selling, there's no rewards to buy and give out. Once it's all been mined, what happens then? The rewards structure is at the mercy of those holding the coins. 




Message 11 of 25
sammydavidjr
Regular Contributor

Re: Waitlist for BlockFi credit card (issued by Evolve Bank) is now open


@Brian_Earl_Spilner wrote:

@sammydavidjr wrote:

@Brian_Earl_Spilner wrote:

Sooo...what happens when all the bitcoins are mined? 


BlockFi doesn't mine Bitcoin, they just buy it and give to people as cashback.

What I find insane about this credit card is the $200 annual fee. Unless there are unannounced perks, it makes a lot more sense to use a 2% cashback card with no annual fee (Paypal, Fidelity, etc.) and buy Bitcoin with the cashback than to use this BlockFi product.


There's still a finite amount and they would rely on there being enough sellers to provide the rewards. If there's nobody selling, there's no rewards to buy and give out. Once it's all been mined, what happens then? The rewards structure is at the mercy of those holding the coins. 


People routinely sell Bitcoin that they haven't mined (most of Bitcoin that is traded every day is not mined by the ones trading it). When there is none left to mine the value of Bitcoin might go up, but BlockFi won't care: they will simply buy as much as they can buy for the USD equivalent of your 1.5% cashback. The cashback is in USD and converted to Bitcoin -- BlockFi are not committing to a minimum amount of Bitcoin.
It's not like banks that give fiat cashback need the Fed to print more dollars every time that they pay out cashback.

Message 12 of 25
Swolehas
New Contributor

Re: Waitlist for BlockFi credit card (issued by Evolve Bank) is now open

So, a $200 annual fee, and they pay you back in fake coin? Huh? I could just buy $200 of bitcoin I guess, then use my 2% PayPal Mastercard cashback to buy 2% bitcoin instead of 1.5%. Not sure why I would want bitcoin in the first place though.

Message 13 of 25
dtk6802
Established Contributor

Re: Waitlist for BlockFi credit card (issued by Evolve Bank) is now open

Btc at 4k was as good as low as it will ever go. Its the best return on investment. 100%.

Banks are moving to btc to stay relevant.

Js

1.5% btc is great just hold for 2-5 years. For max profit 

Starting score(February 2018)-520Current Score: FICO 8- 748EX, 768TU, 770EQ, Goal Score: 780 by (05/2020)
BUISNESS CREDIT
Citi AAdvantage p.s. 11,000 SL

Amex Hilton-3000
Amex SimplyCash Plus® -1300-
Amex Blue Business Plus Card - 10,000.
Amex green charge card- NPSL

inquiries scoreless. Ex, Tu, Eq=1,1,1
TOTAL PERSONAL CL 100,000+
Amex Green
BJs perks World Mastercard-14,000
HILTON HONORS-2000
Cap1 Venture(Downgraded to V1)-VS-5,500
Sams Club MC 20000
Citi® - AAdvantage® Platinum Select® WEMC-10,500CL, Citi Premier(WMC)(upgraded from rewards+)9750
1st Disco It- 4200 , 2nd Disco it- 5500CL
Dcu-3000-
12/18 Amazon SC- 10,000 cl AND-Walmart SC-7500cl, Home depot- 2000cl-
- Auto loan(80% paid off)
Goal score 800


Message 14 of 25
Swolehas
New Contributor

Re: Waitlist for BlockFi credit card (issued by Evolve Bank) is now open


@dtk6802 wrote:

Btc at 4k was as good as low as it will ever go. Its the best return on investment. 100%.

Banks are moving to btc to stay relevant.

Js

1.5% btc is great just hold for 2-5 years. For max profit 


I mean even if you really wanted bitcoin, you could use a 2% cashback card with no annual fee and then just buy bitcoin with the 2% cashback.

Message 15 of 25
KJinNC
Valued Contributor

Re: Waitlist for BlockFi credit card (issued by Evolve Bank) is now open

There are numerous products, not just credit cards but in every industry, where you could do extra work or planning yourself and come out ahead of using that product. One example that comes to mind is, I have a motorcycle. I have an insurance policy on it. However, I could instead simply either fix the motorcycle from savings, or let it stay broken until I can afford to fix it. In my case, it's a pleasure vehicle that I do not rely on for work etc. Knowing that insurance companies normally take in more revenue than they pay out, and thus that I am likely to pay more on premiums than I recoup in repair costs, why do I have this policy? Just to make life a little easier.

Unless this card has major perks aside from the 1.5% bitcoin thing, I do not think a $200 annual fee, or any annual fee, is warranted. But otherwise, I can definitely see the appeal of using this card, instead of taking the other steps involved to invest 2% cash back in bitcoin.


FICO Resilience Index: 69. Cards: 10/24, 3/12, 3/6. Accounts including loans: 12/24, 4/12, 4/6. At first accidentally, later deliberately, I used what I call the "thick-start" build method, which leads to heavy credit-seeking for a while with the goal of coming out of it without needing to build a thin profile for years. There are pros and cons. Thread describing method
Cards (oldest to newest)


Authorized user / Corporate / Auto loans / Personal loan

Card CLs total $151,100, not counting the AU card. The AU card brings the total to $177,600. In 03/19, card CLs totaled $0.
CU and bank memberships: Coastal Credit Union, joined 1987, direct deposit; PenFed, joined 2019; Navy Federal, joined 2020; USAA, joined 2020; Chase Bank, joined 2020. Best: Coastal, worst: NFCU. I have had weird Keystone Kops customer service problems with NFCU several times, despite their reputation here.

Closed but still on reports: American Express Gold, NPSL, 08/19-06/21 | American Express Delta Gold, $1,000, 09/19-10/20 | American Express Hilton Aspire, $3,100, 09/19-12/20 | Citi secured, $200, 04/19-09/19 | Capital One secured, $300, 04/19-08/19 | My Jewelers Club, $5,000, 05/19-08/19 | Green Dot Primor, $300, 05/19-08/19 | Self Lender secured $500 loan, 04/19-01/20 | Unsecured personal loan from Coastal, $1,000, 06/19-08/19.
Note: My signature is updated frequently, and updates appear on all instances of my signature including on old posts.
Message 16 of 25
dtk6802
Established Contributor

Re: Waitlist for BlockFi credit card (issued by Evolve Bank) is now open

Btc is at 19k... not going to 0...
Starting score(February 2018)-520Current Score: FICO 8- 748EX, 768TU, 770EQ, Goal Score: 780 by (05/2020)
BUISNESS CREDIT
Citi AAdvantage p.s. 11,000 SL

Amex Hilton-3000
Amex SimplyCash Plus® -1300-
Amex Blue Business Plus Card - 10,000.
Amex green charge card- NPSL

inquiries scoreless. Ex, Tu, Eq=1,1,1
TOTAL PERSONAL CL 100,000+
Amex Green
BJs perks World Mastercard-14,000
HILTON HONORS-2000
Cap1 Venture(Downgraded to V1)-VS-5,500
Sams Club MC 20000
Citi® - AAdvantage® Platinum Select® WEMC-10,500CL, Citi Premier(WMC)(upgraded from rewards+)9750
1st Disco It- 4200 , 2nd Disco it- 5500CL
Dcu-3000-
12/18 Amazon SC- 10,000 cl AND-Walmart SC-7500cl, Home depot- 2000cl-
- Auto loan(80% paid off)
Goal score 800


Message 17 of 25
imaximous
Valued Contributor

Re: Waitlist for BlockFi credit card (issued by Evolve Bank) is now open

Aside from the value of Bitcoin, this card offers nothing enticing to me. It doesn't matter what you get paid on, gold, diamonds, etc. It's still 1.5% back. As mentioned before, other cards offer a better return, which could be used to buy Bitcoin and without the AF. 

In a similar fashion, this is like using an airline card at 1x where you could use a transferable points card that earns you higher rewards, and then transfer the points to said airline. Unless there are additional benefits for charging on it, I wouldn't use it at all and maybe only keep it for the perks. 🤷🏻‍♂️

AMEX | BofA | Barclays | Cap One | Chase | Citi | Discover | GS | PenFed | SYNCB (PP MC, Lowe's, Amazon, PP Credit) | US Bank
Message 18 of 25
K-in-Boston
Moderator

Re: Waitlist for BlockFi credit card (issued by Evolve Bank) is now open


@dtk6802 wrote:
Btc is at 19k... not going to 0...

It could, however, but more likely can plummet as it frequently does.  There have been numerous huge losses in value just in the past few years, and it's been at $20k in the past only to lose 80% of its value in a heartbeat.

 

While BTC may possibly be a good long term investment, the question posed by others in this thread is still a very good one: why would one pay a large annual fee to earn 1.5% in rewards posted as BTC, rather than getting a no-AF 2% or higher card and then just purchase BTC?

Message 19 of 25
CorporatePanda
New Contributor

Re: Waitlist for BlockFi credit card (issued by Evolve Bank) is now open

Does the card do anything to allow less tech savvy people to get in on bitcoin? I've read very little on crypto but I could see how having to figure out how to store it, how to exchange it, etc. could be intimidating. 

 

If the card allows for easy access to crypto without prior knowledge, maybe that's the draw? Probably not worth a $200 AF though, in my opinion

as of 01/13/2021

Wallet:


Sock Drawer:
Message 20 of 25
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.