Spending Crypto – Post #1

I have been thinking about documenting a journey, a crypto spending journey. What good is cryptocurrency if you are not using it?

There are quite a few questions and topics I have been contemplating so lets take a look.

Credit Card Life Hacks

For the past 2 years I have been implementing a credit card points program. Look anywhere on the internet and you can find individuals discussing how you can benefit from credit cards that offer a points program.

There are many different types of programs, the most popular are Airline Miles Points for redeeming for travel and % back credit cards. If you have the time and are organized you can definitely game the system, but not by a enormous amount and I would question the time and effort put in does not cover the benefits you receive.

I have flown over 20 free round trip flights over the years from gathering Airline Miles from business travels. That is the best case since the company pays for the travel and I collect the bonus of miles I can use personally.

Another reward card, the cash-back type cards are great as well, but many have like a 1% cash back on everything and then keep rolling higher percentages for special items like groceries, gas or dining ranging from 2% to 5% cash back. But again, time and effort is needed to get the most benefits. Who has time for all that?

What's in your wallet!

I'm sure you have seen the Capital One credit card commercials.


Why would they do this? Cash back on items I would buy anyway!

Credit card companies charge the retailers that accept credit cards for payment a range that averages out to about 3%. So if you get a credit card with say 2% cash back, the credit card company makes 1%. So now companies entice consumers to use their card and increase there consumer base and hence make more money by the sheer market share. Win-Win right!

Well if you think that's a win for everyone, I would have to explain to you why “Free Shipping” isn't free ;–)

Other conspiracy theory's would try to convince you the credit card companies are tied to the power that be. They want to go to a cashless society and this is the long game transitioning people with incentives to use the cards instead.

My 2 year experiment results

I started 2 years ago. I settled on a simple 2% back on everything card since there would be no effort monitoring the rolling cash back promotions. Time is money and a few percentage gain would be a drop in the bucket. Also, using multiple cards, one for gas @5% back, one for groceries @3.5% back and one for all others at 2% would be a billing/paying challenge to keep track.

I chose the simplest route, 2% on everything.

Interestingly, the results are good but much less than others may lead you to believe. We have averaged spending a little more than $2,900 a month on the cash back credit card. We pay this off every month and roll the cash back bonus into the next statement reducing the actual statement balance. Its been easy, and quite honestly I am surprised that I really never carry cash anymore. Maybe there is something to the conspiracy theory above ;–)!

The results are in: about $800 per year in cash back rewards. Hey ... who would not want a little extra cash back when I would have spent that money anyway using cash!

So what does this have to do with spending crypto?

If this can be successful on cash, why not try this experiment with crypto.

Read Spending Crypto – Post #2 to find out.

All Spending Crypto series:

Spending Crypto – Post #1

Spending Crypto – Post #2

Spending Crypto – Post #3

Spending Crypto – Post #4

Spending Crypto – Post #5


Photo by Dmitry Demidko on Unsplash

Photo by Christiann Koepke on Unsplash