Crypto Credit Card Rewards Are on the Horizon -- but What Can You Do With Them?
by Brittney Myers | Updated July 21, 2021 - First published on June 13, 2021
Cryptocurrency isn't just for techies anymore...
If you're up on the recent headlines, it's clear that cryptocurrency has finally started it's transition into a truly mainstream commodity. This observation is confirmed by a recent study by The Ascent on blockchain and cryptocurrency.
Our survey showed a widespread interest in the burgeoning digital currency marketplace, and that interest doesn't seem to be limited to a collector's curiosity. There also seems to be a growing interest in various crypto-related products, from bank account integrations all the way to credit card rewards.
Indeed, a whopping 65% of respondents said they'd be interested in a credit card that offered crypto rewards rather than traditional cash back or points. Not surprisingly, the credit card issuers have noticed this sentiment, too. At least one new crypto rewards credit card has been announced, and more are sure to follow if crypto continues to gain mainstream followers.
Of course, this news begs the inevitable question: What do you actually do with crypto rewards? Sure, you can just collect them; that's what many crypto owners have done for years. But do they have any practical value? As it turns out, there are a number of ways you can turn digital currency into tangible reality. Let's take a look at a few of them.
Cash it out
The most obvious way to get some good use out of your crypto is to simply cash it out. Sell your shares for cash, then move the money to your bank account. Once it's in your bank, you can spend it on anything you want.
While your future crypto rewards credit card may make it easy to turn crypto into cash or gift cards, it may wind up being easiest to transfer your digital currency to a popular cryptocurrency exchange platform. Time will tell.
Buy a fancy car
If you want to skip the middleman and go straight to the car dealer with your crypto in hand, you're in luck. Several major car brands, including Tesla and BMW, will accept crypto at a number of their dealerships.
Although we don't know much about future rewards credit cards, it's unlikely you'll get crypto rewards rates high enough to purchase a car. But if you can combine your rewards with crypto you already hold, you could wind up with a new luxury car in your driveway.
Not sure if your local luxury dealer takes crypto? Just ask -- you never know if your Bitcoin can get you behind the wheel of something awesome.
Get a new computer
This one arguably makes the most sense of any product that should be bought with a digital currency. Popular online electronics retailer Newegg has jumped on the crypto bandwagon, making use of the BitPay service to accept Bitcoin as a payment method for orders.
There are a few limitations on what items can be purchased with crypto, such as exclusions for gift cards, subscriptions, and marketplace items. But that still leaves a ton of computers and other electronics for the purchasing.
Furnish your house
Your local furniture store isn't super likely to take crypto payments, but you can always head online to Overstock.com. The online retailer has a whole host of homegoods, from furniture to home improvement products, and you can pay for it all with Bitcoin. Unfortunately, out of all the different types of cryptocurrency, Bitcoin is the only cryptocurrency you can use with the site for now.
Take a vacation
As of yet, most major U.S. travel chains aren't on board the crypto train -- you can't go to Hilton's site and book a room with Bitcoin. But, you can still book your next vacation with your favorite cryptocurrency through a third-party site called CheapAir.com.
The site lets you book flights, hotels, and car rentals all in one place, then pay for it with currencies like:
While it's likely you'll still be better off with credit cards that earn travel rewards instead of crypto for booking free vacations, lucrative earnings rates on crypto rewards cards could make this a viable option for some.
Coming soon: Your taxes?
By this point, it's become clear that crypto is evolving into something more than a fad or curiosity. Major retailers are adopting it, credit card issuers are considering it, and even governments are starting to come on board.
Yes, governments. Recent headlines had the talking heads atwitter with the news that the governor of Colorado wanted to make it possible for residents to pay their taxes via crypto. So, if you're one of the 65% who are looking forward to a crypto credit card, you could very well turn your credit card rewards into tax payments.
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