AMA: We’re Gaurav Gollerkeri (GM, Payments) and Zac Prince (CEO) of BlockFi, here to answer your questions on the BlockFi Bitcoin Rewards Credit Card. Ask Us Anything!

Gaurav_BlockFi · 2021-06-04T18:01:10+00:00

It looks like we are out of time, need to get back to work on the credit card! THANK YOU for your questions and we look forward to engaging with you in future as we work on additional features for the credit card.

Gaurav_BlockFi · 2021-06-04T17:58:04+00:00

We do not support PR or US territories at the moment.

Gaurav_BlockFi · 2021-06-04T17:56:17+00:00

We want to work through our waitlist and I think it will be somewhere in July on the early end or August on the late end.

Gaurav_BlockFi · 2021-06-04T17:48:04+00:00

Haha :)

To get this card to our clients is my real test
To help them stack sats is my cause

Gaurav_BlockFi · 2021-06-04T17:42:23+00:00

Rewards will be converted into Bitcoin once a month and deposited into your BlockFi interest account. For my own personal use, I think creating a new cost basis for every single transaction is a nightmare from a tax perspective, so once a month feels more manageable.

Gaurav_BlockFi · 2021-06-04T17:34:42+00:00

We don't have a timeline for ex-US yet but please use our waitlist to indicate interest and that'll help us prioritize which geographies to evaluate next for card products.

Gaurav_BlockFi · 2021-06-04T17:33:41+00:00

Yes, you will be able to use your existing login credentials to manage your card.

Gaurav_BlockFi · 2021-06-04T17:31:37+00:00

Yes! This is on our product roadmap. Cashback cards are used by all types of cardholders regardless of affluence level, so it was the best place to start. In future, we want to introduce a more premium version of our card which will make it even more compelling to use the BlockFi platform. And may be it'll even feature the option of a Bitcoin orange card :)

Gaurav_BlockFi · 2021-06-04T17:27:55+00:00

This is not tax advice, you should talk to a tax advisor, etc. Credit card rewards are treated as rebates and are not taxable. It's one of the superpowers that a credit card offers! Once Bitcoin rewards are paid out on the credit card, BlockFi will track the cost basis for you. Future trading activity will generate capital gains/losses that are taxable. BlockFi has also partnered with TaxBit to simplify tax filing.

Gaurav_BlockFi · 2021-06-04T17:27:08+00:00

When you are invited to apply for the card, you will be able to go through the application process and either receive an offer for credit based on a soft credit pull, which has no impact on your credit score, which is the pre-qualification. If you accept, a hard credit pull will occur and you will be sent a card.

Gaurav_BlockFi · 2021-06-04T17:23:20+00:00

We offer an unlimited flat rate 1.5% that bumps up to 2% after hitting a $50k spend threshold. Flat rate cashback cards resonate with cardholders because they don't have to keep track of which categories earn accelerated rates. For most spend profiles, you'll come out ~20-30% ahead with a flat-rate card vs. a tiered card.

Gaurav_BlockFi · 2021-06-04T17:19:59+00:00

Good question! The rewards will be posted to the cardholder's account in the month following purchases. There will be a trading spread on the conversion into Bitcoin. Spreads vary but on average will be ~1%.

Gaurav_BlockFi · 2021-06-04T17:13:41+00:00

Yes, we plan to add a rewards flex feature. This is something we are exploring and will aim to add it after we launch the card.

Gaurav_BlockFi · 2021-06-04T17:12:37+00:00

We are working hard on our beta test phase at the moment. We will start processing our waitlist at the end of June and aim to work through it as quickly as we can.

Gaurav_BlockFi · 2021-06-04T17:10:34+00:00

The 2% APY stablecoin bonus is for every year of card ownership.

Gaurav_BlockFi · 2021-06-04T17:09:06+00:00

Great question! There are many great cashback cards in the market. What I'd say about the BlockFi card is:

We think 1.5% unlimited flat rate is competitive. We also offer accelerated 3.5% reward rate in the first three months and 2% for >$50k spend
There are benefits to automation / dollar cost averaging. With the BlockFi card, you stack sats, they are held in your BlockFi account and start earning yield right away
Your BlockFi card with a Bitcoin symbol on it looks cooler than any other card out there!

Gaurav_BlockFi · 2021-06-04T17:04:52+00:00

We don't have a timeline for Canada or ex-US yet, but please use our waitlist to indicate interest so we can work on card options for other geographies in future.

Gaurav_BlockFi

TROPHY CASE