What is in your wallet?
When Cryptocurrency and Credit Collide..
Decentralized finance is the inevitable future of the corporate and retail banking scene. The benefits that it provides to the consumer are too delectable to turn up. We recently came across a Crypto/Credit ecosystem with revolutionary programs which enable the user to fully capitalize on their crypto investment, minimize IRL expenses and focus on expanding wealth. Lets start with the basics!
The first thing that is crucial to know about these Visa programs is that the benefit is amplified if you hold enough to stake on the MCO/CRO network. These are two currencies that are owned by the Crypto.com team, and enable for the network to function. If you're unfamiliar with staking, read this previous blog.
Essentially a user has to purchase enough to hold a stake in the network. The amount you purchase correlates to the card you can use. Lets follow the "Ruby" card which requires 50 MCO:
- 50 MCO costs around $230 USD at the time of writing this. One could think of this as a deposit. However, this deposit is subject to capital gains/losses and enables you to access the benefits of the card.
- This into itself is a powerful mechanism for compounding wealth without doing much work. If you get a significant cash back reinvestment program in an asset which is appreciating, its functionally identical to dividend reimbursement - just by using a credit card.
- Once you have the required amount to stake your card has 0 costs associated with its use. Unlike most retail credit cards there is monthly/yearly access fees for the perks. Crypto.com is different!
- 2% cash back on all purchases (paid into MCO wallet).
- 100% reimbursement on monthly spotify subscription.
- Durable metal card with aesthetic finish.
- What makes this project special to me is the fact that its virtually 0 fee barring the initial deposit which never leaves your control. Further, cashback rarely applies to all purchases, let alone near instant deposit into your MCO wallet.
Comparing All Options:
Pay to win?
The benefits for the consumer are amplified as they control a larger stake in the Crypto.com Defi Network. As you spend credit, your MCO stake will increase in size. You can always cash it out for fiat, but otherwise it will accumulate. There is a very clear relationship: the more you stake, the more you benefit.
This is the highest ranked credit card offered by Crypto.com and the rewards it provides are absolutely insane. You will not find 5% cash back on all purchases elsewhere in the market.
Among the other benefits like Netflix, Spotify, Prime, Airbnb/expedia discounts, you can get private jets at a discount! The glaring price of 50 000 MCO is expensive, but its important to remember that the stake is essentially a deposit. You would not find this kind of service/value price in the traditional market, and it is a glaring example of the power Defi brings to the table in modern banking.
One of the largest benefits I see to this program is taht you can start with $0 and start working on the cashback. Reaching the threshold for a MCO node is a turning point in your journey.
Click here if you want to register and get started on your first Crypto/Credit card. The possibilities for this project are truly endless and the sky is the limit.