Cryptocurrency and Credit Cards: How Does Their Intersection Look Like?

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cryptocurrency and credit cards

First introduced in 2009, cryptocurrency, especially bitcoin, has gained recognition in the past few years. Rising Bitcoin prices and the introduction of new crypto coins have increased the chances of cryptocurrency going mainstream.

What indicates that cryptocurrency will soon go mainstream? It is the current intersection with credit cards.

Yes, that’s right! Credit cards and cryptocurrency are interacting with each other in the market in different ways. And this will make cryptocurrency more accessible to the common man with high chances to use crypto coins to buy things and commodities. Let’s see a brief overview of how credit cards and bitcoin intersect.

Establishment of bitcoin ATMs

The establishment of bitcoin ATMs is the beginning of using a credit card to utilize bitcoin in the mainstream market. There are already more than 30,000 bitcoin ATMs around the world.

However, unlike your regular ATMs, bitcoin ATMs are used to buy bitcoin. These ATMs don’t dispense cash. Also, there is a limitation to how much bitcoin cryptocurrency you can buy using these ATMs. These ATMs also charge you a fee and hence don’t offer the right prices.

Use Credit Card to Buy Bitcoin

You can buy bitcoin using different ways. And using a credit card to buy bitcoin is certainly the easiest and one of the best ways. However, you can’t buy all types of cryptocurrencies using a credit card and not all crypto exchanges support credit cards.

And what’s more! Well, another hiccup with using a credit card is that most crypto exchanges will charge you a heavy fee when you use a credit card. This makes it more expensive.

Moreover, credit cards will consider crypto equivalent to cash currency. Hence when you buy crypto using a credit card, you will incur charges just as you use it for buying things using cash.

Do credit cards and bitcoin intersect for the benefit?

Until now, it might seem that credit cards and bitcoin might not go together. However, there is a possibility of a successful intersection with the introduction of credit cards that offer bitcoin rewards.

The latest addition to this development is the introduction of BlockFi’s credit card that offers bitcoin rewards. Moreover, the BlockFi exclusive Visa Bitcoin Rewards Credit Card is now open to the public to use.

With BlockFi’s credit card you can get 1.5% bitcoin rewards. However, with this, the user is also prone to the volatility of the cryptocurrency market. Despite that, there are high chances of more such bitcoin rewards credit cards being released for the users.

Bottom Line

Cryptocurrency and credit cards have a long road to go before it becomes economic for the public to use a credit card to buy cryptocurrency. One more step forward would be to use cryptocurrency to buy commodities using a credit card. How does this intersection benefits the users remains to be seen!

Currently, if you want to keep reading about cryptocurrency and further developments in this market, keep reading Coin Informer!

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