Gaining exposure to the Bitcoin ecosystem doesn’t necessarily require making any investment. Numerous options are available in this regard. Earning a Bitcoin cashback for payments through traditional payment methods is one such option to explore.
The Concept of a Cashback
Most consumers around the world are familiar with the cashback concept. It is a financial transaction where one spends money and receives a small portion of the amount back as a reward. This process is usually associated with credit and debit cards. In a way, users earn money for spending money, although these amounts are always small. Through this method, consumers can often plan their purchases to maximize cashback options and save a bit of money every month.
In most cases, consumers will apply this cashback to a credit card bill. However, it is also possible to receive it as a check or bank account deposit. How the service is implemented will differ from one financial institution to the next one. While most banks provide such a service, it is not mandatory to provide clients with this feature. Offering an incentive to customers can be worthwhile, though.
The Bitcoin Cashback Idea
Several years ago, companies started exploring ways to offer users their cashback, but have it paid out in Bitcoin. Doing so serves multiple purposes. First of all, it introduces more people to the concept of cryptocurrency, which remains one key barrier to entry. Second, it can bring some positive attention to Bitcoin as a whole. Due to its scarcity, getting more BC into the hands of people can help attain a higher market value for BTC.
Fast forward to today, and several Bitcoin cashback services exist. All of these providers aim to make the process as frictionless as possible. It is, for this reason, there are now multiple cryptocurrency debit card providers. For those companies, it is much easier to integrate a cashback service on every purchase. Earning between 0.5% to 5% on every purchase is not out of the question.
Other solutions can be equally elegant. Using a browser plugin to earn a Bitcoin cashback on traditional purchases from qualified retailers is one implementation. Another option is to go down the mobile route, where shoppers earn rewards for shopping online. Regardless of which option one chooses, it all comes down to participating retailers.
More competition can prove beneficial where Bitcoin cashbacks are concerned. For the time being, there are just a handful of solutions, most of which aren’t even available outside of the United States. If Bitcoin is to become a global monetary tool, certain things will need to change to make that happen.