Bitcoin Cash; looking like clever marketing or real adoption?

[CTO114]

I guess we've seen the news that Block plans to offer Square credit card users 3% cash back in Bitcoin, puts a lot of persons in a curious state, personally I see it as a very intriguing move. Presently this particular feature is still listed as in progress, but one can help but speculate what this does for Bitcoin and its place in today's financial world.
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On a positive note, Bitcoin's adoption can grow without necessarily having to convince people to forgo their habits. People already need to spend money everyday, and if part of that spending can earn them Bitcoin, gradually they are becoming exposed to the asset Bitcoin, a lot if persons might have never entered the thought of owning. A wise man once said; "if you want to introduce a new thing to people, make it part of what they already do."

My honest concern is,  that at face value this move looks like a good one for Bitcoins growing adoption and influence, but on the second thought, this move could make people dependent on the parent company distributing Bitcoin as discounts.

There's an obvious difference between someone who holds Bitcoin because they understand how it works and somebody receiving it because a credit card company handed it as some form if reward or discount. The first person here would consciously develop a lasting interest in Bitcoin, while the second set may loose long term interest once the reward sucks withdrawn.

Although human behaviour is always proving to be unpredictable especially in cases like this, a person in it as a recipient of rewards can potentially gain long standing interest in Bitcoin which is also good for it.

However if people hold Bitcoin as a result of a reward system, and never learn to hold or use Bitcoin outside these incentive institutions can lead to an increase in adoption, but ultimately limit financial sovereignty. Is Bitcoin being accessible without being more independent?

[JaanusRaim]

Upon reading the headline, I initially thought that the long-awaited physical Bitcoin coins and banknotes had been released—physical Bitcoin money

[PostQuantumBTC]

You need to correct the subject of the topic, what you wrote on the subject is Bitcoin Cash (BCH) which is an altcoin and not bitcoin. Bitcoin (BTC) is a different coin totally.

Is Bitcoin being accessible without being more independent?

I do not really understand your question. I do not understand what you mean as bitcoin being independent. What do you mean buy that?

[OcTradism]

I read the topic title and think you talk about Bitcoin Cash, but your topic is not about this scam coin. Below are threads about Bitcoin Cash scam coin but your title is very confusing. What you want to talk is not about Bitcoin Cash.

To newcomers: make sure when you buy bitcoin you are buying bitcoin!
Has Bitcoin.com stopped presenting Bitcoin Cash as the real Bitcoin?

[Accardo]

Minus fees, jack is giving back 1% issuers fee should be 2% for every transaction, so when you swipe the card, they get 2%, and give back 3% in btc. Sparing 1%, added to what was taken from fee, is a clever marketing technique indeed, which forces all square card holders to DCA.

[adultcrypto]

This is a positive news for bitcoin adoption and there is no need expressing pessimism. If people will be rewarded up to 3% cashback in bitcoin for using their cards which they would use even without rewards, more people will be interested and hence more bitcoin owners will emerge. I just imagine this getting popular in a place like my country, more than 60% of my country's population will no hesitate to jump in. If we have more people and companies doing this, the adoption of bitcoin will grow rapidly.

[Faisal2202]

There is always a limit on rewards. It's not like they can allow merchants to buy it for others and make money from discounts without any cap. Well, Cash App has also offered 5%, capped at $30 a month. Their offer is also going to end by the end of December 2026.

Also, their roadmap still says it's in progress, so there can be limitations that we have to confirm first. But anyway, this is not a big adoption. It's not like someone who earns 3% on every transaction (although there might be limits) is going to accumulate it. They will definitely reuse it and pay for something else with it.

But it's true that some people who have never stepped into the crypto world can learn a thing or two about it after spending it. Those who won't give any fucks about it will hold it, and once they learn about the profits, they will give it real importance then too. Speaking of financial sovereignty, it's not really on the table in my view because it only becomes relevant when someone understands self-custody or chooses to act on it. Anyway, the discussion about self-sovereignty alone can be stretched way too long, and I have already written a lot haha.

[Ambatman]

Upon reading the headline, I initially thought that the long-awaited physical Bitcoin coins and banknotes had been released—physical Bitcoin money

Long awaited? What ever it would be wouldnt be bitcoin but a fancy shitcoin made paper.

My honest concern is,  that at face value this move looks like a good one for Bitcoins growing adoption and influence, but

There's always a sacrifice
Growing adoption so far has seen alot of usage or holding via centralized means.

Is Bitcoin being accessible without being more independent?

Sorry I don't get
Despite how it's been usage at it's core bitcoin still remains a decentralised money.

[BlackHatCoiner]

First off, your title is misleading. Block is giving out Bitcoin (BTC), not Bitcoin Cash (BCH). Careful mixing those up around here unless you want to get crucified.

To answer your question: it's a gateway drug.

Expecting the average credit card swiper to care about "financial sovereignty" is like expecting a guy who buys a microwave to understand thermodynamics. They don't care, they just want their hot pocket.

[lionheart78]

I think it is a strategy of a company to get the attention of people who are interested in Bitcoin to transact using their credit card service.  Yes it can encourage adoption but on top of that, I think it is a clever marketing strategy.

Having 3% cashback in credit cards is normal, but this time they use Bitcoin as a reward (if I am not mistaken) is somehow riding the trend of cryptocurrency Industry.

[NotFuzzyWarm]

^^ I concur. Makes for a very easy way to DCA.
I usually will not shop for different credit cards (been using the same 3 for over 40 years) but think I'll check them out to see what the interest is and if they charge a yearly fee for the card.

@OP, please edit the topic title as I've done with this reply to reflect the actual topic....
 
Edit: Square is a business-only service, no consumer offerings that I can find. The Square business credit card runs on the AMEX network. https://squareup.com/us/en/banking/credit-card

https://squareup.com/us/en/bitcoin is about Square letting you not only accept BTC for payments but also quickly auto-exchange a percentage of daily fiat receivables into BTC. Interesting.

[sunsilk]

I guess we've seen the news that Block plans to offer Square credit card users 3% cash back in Bitcoin, puts a lot of persons in a curious state, personally I see it as a very intriguing move.

That is not an intriguing move, that's a basic move from these financial institutions to make people keep on spending.

But if that's my target to go after the cash backs, I won't do it. I'll go straight with the actual purchase of BTC rather than get a 3% cash back.

While that's good for purchases for basic things because they're encouraging people for that cash back, it's not that bad because every credit card has the cash back promo.

Change your title Bitcoin Cash > Bitcoin Cashback.

[pooya87]

Credit card companies are like drug dealers and they are essentially mafiosos!

They lure you in with so many advertisements and "free samples" so that you borrow money from these "loan sharks" and then eventually fail to pay it back. But by that time you are already hooked or addicted to this corrupted economic model which I've been calling debt based economy which is like a plague. So you only sink deeper into debt since you'll have to pay more and more interest on what you owe them and that's before they increase interest rates!

So what you said they are doing here is just another advertisement to get more victims in and milk them drier. They'll need more victims too since a debt-based economy is eventually turning into a Ponzi scheme (like the US economy is these days) and it can only continue if it gets "fresh" victims.

[ABCbits]

It's good news for those who already use one or more Square services. But IMO 3% cashback in Bitcoin alone isn't worth it to register on one more centralized service.

First off, your title is misleading. Block is giving out Bitcoin (BTC), not Bitcoin Cash (BCH). Careful mixing those up around here unless you want to get crucified.

Not really surprising from account that created 175 thread so far and rarely engage on thread it create.

[ultrloa]

I think it is a strategy of a company to get the attention of people who are interested in Bitcoin to transact using their credit card service.  Yes it can encourage adoption but on top of that, I think it is a clever marketing strategy.

Having 3% cashback in credit cards is normal, but this time they use Bitcoin as a reward (if I am not mistaken) is somehow riding the trend of cryptocurrency Industry.

Definitely they are running a clever marketing strategy, also that 3% is quiet normal cashbacks given, but what makes it unique is their offered to give in Bitcoin.

Somehow I find it good, since it can possibly encourage more adoption and many people which curious about Bitcoin might give a shot to try their offerings.

This is definitely smart branding for them, because they get easy exposure by help of that coin.

[Munshi Prem Chand]

...

A lot of people pay their balance in full. They dont pay interest and they can get cash or points or BTC back, and I dont see that as predatory.

I dont think it changes incentive to spend more than you can afford. There is plenty of studies that show giving people cash back, even just 3%, on a regular old credit card encourages overspending. That is a problem with credit cards in general. Whether they get BTC or cash at the end doesnt really have an effect one way or the other, IMO.

Whether debt based consumer credit is a bad idea is definitely worth discussing, but I dont think that is really what is being debated here. Question is whether BTC rewards have an effect, and in my opinion they dont really change incentives one way or the other. Person will get BTC instead of cash, but they had that cash/credit going in either way.