@K-in-Boston wrote:
@Anonymous 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?
There are mainstream predictions that BTC could go as high as 400k in the next few years. Conservative predictions that it will hit 40k sometime in 2021. This is the second wave of mainstream adoption of the technology so I don't think you'll see another 85% drop. 40% pullbacks sure and the crypto is tracking the broader markets now so its susceptible to market corrections.
Block Fi is part of that next wave of crypto brokers where its not just a wallet for storing and trading crypto but has a savings component to it as well as drawing a personal loan. The personal loan provision is better than what you'll find through a broker which requires 50% LTV and might give you an extra 5% to avoid a margin call overnight. Block Fi restricts your loan to 50% LTV but won't require a margin call until 70% LTV, permitting some draw down on your crypto loan (30%). The payments required on the loan are interest only and can be rolled over in perpetuity. Its also paying an interest rated compounded daily as high as 8.6% on USD stablecoin so if you just wanted to use it as a savings account you could do that too.
You can get a $250 BTC bonus for opening the account and funding it with 20,000 and also a $250 BTC if you take out the card. If the price of BT doubles in the the next year those signup bonuses become worth $1000. 20,000 in stable coin would also earn $1,720 interest in that time period just for doing nothing. Then if you spend 10,000 on the credit card in the calendar year that is another $150 ($300)
Card earn $300
Bonuses $1000
Coin Interest $1720
Total 3,020 on a 20k investment, over a 15% ROI. You can direct the stablecoin interest to BTC for another $1720 for $4,720 in passive gains over the year.
Its not bad. I wouldn't replace my 3% dining or travel cards with it but for non-cat spend it works. Its not a direct replacement for a brokerage either since all you can trade is cryptocurrency but might work as a replacement for a savings account or CDs. It doesn't have direct deposit and the ACH is limited to $500. You'll have to wire funds over and you get 1 free withdraw a month. Definitely better as a passive investment tool like a savings account.
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