Coinbase, the digital currency exchange app, has launched a coinbase card in the UK. It’s a debit card that allows one to spend their cryptocurrency at any merchant that accepts Visa. The card works directly with a Coinbase account and instantly converts digital currency into fiat cash at a point of sale. It’s wonderful for anyone holding crypto, but there’s strings attached.
It costs $6.50 to get a new card. Any transaction in the UK will have a 2.49% fee, 2.69% for transactions in the EU, and 5.49% internationally. Any ATM withdraw made domestically has a 1% fee, with a $650 daily withdrawal limit. The Daily spending limit is about $13,000. These daily limits apparently can be increased, but I couldn’t find any info on how.
The biggest problem with crypto is the friction caused by converting coins into usable cash, the coinbase card will fix that. Streamlining this process will encourage the mass adoption of digital currency and strengthen its legitimacy in markets. The second biggest challenge is how volatile cryptocurrency is. Let’s not forget, bitcoin didn’t emerge till the first exchange (bitcoinmarket.com) that allowed people to buy and sell it started in 2010. Otherwise getting your hands on bitcoin was a complicated process. So, this currency isn’t even a decade old and people are speculative and doubtful.
I view cryptocurrency like gold. Bitcoin is finite, one day no more can be mined. The price moves everyday, as much as 10% on some days. People are betting hundreds of thousands of dollars on it, and within the past year most have gotten burned, but that depends on how you look at it. This is not a short term play, the bubble has already popped. Look at history- gold did the same thing. You have to wait months if not years. The only reason people get burned is because they want to get rich quick. This is a patience game. Buy now and hold for a few years.