Cryptocurrency is changing the world as we know it. Although it may not be as quick as most enthusiasts had hoped, it is still proceeding as bitcoin creator Satoshi Nakamoto would have dreamed it would.
Cryptocurrencies and How They Are Changing The World
There was a time when people had no clue what bitcoin is and how it would reshape traditional spending and cash flow. Now, it looks like more people are turning to the virtual currency as innovations finally came to light to help bridge the gap that held bitcoin and other cryptocurrencies at arm’s length of overcoming traditional currencies.
Over the years, the value of bitcoin surged. Although its road to the top remains turbulent, the fact remains that it has gone far beyond what people expected. From as low as $0.0054 to a staggering $177.2, bitcoin has indeed come a long way since it was first introduced to the public in 2009.
One guy, who was doing a research about the then-newly introduced cryptocurrency, bought 5,000 bitcoins for only $27 and became thousands of dollars richer in 2013 when is value reached a hefty $886,000.
However, this guy probably isn’t particularly happy at the time because the virtual currency remains unaccepted by traditional financial institutions. In fact, it cannot even be used to buy anything on the market.
But that was five years ago. Now, banking firms have started to open their minds to the possibility that cryptocurrencies are the present and future of finance. And then, bitcoin debit and prepaid cards were born. If the guy was able to keep his 5,000 bitcoins in the past five years, there is a good chance that he can now turn them into fiat currencies thanks to bitcoin prepaid and debit cards
If you want to learn more about how cryptocurrency started and progressed, click here for the basics.
Bitcoin Prepaid Cards and Their Fees
Despite being introduced a few years back, bitcoin debit and prepaid cards remain unknown to many people. Even so, the fact remains that it is now possible to exchange bitcoin for fiat money through prepaid cards.
Of course, like traditional prepaid cards, ones running on bitcoin require certain fees, depending on the bank or institution they are tied up to. These include:
- Card Fee – Card fees are collected to produce the actual plastic card tied up to a bitcoin wallet. This is usually a flat fee, ranging from $6 to $40, depending on the company.
- Delivery Fee – Some banks include the delivery fees in the flat rate they charge for the card fees. Others— especially those overseas— bill it separately and with an amount ranging between $6 and $26.
- Monthly Fee – Some bitcoin prepaid cards have monthly service fees ranging from $1 and $6. Because the amount is not that big, other providers offer different payment options for cheaper fees, including annual payments running from $13 to $65.
- Loading Fee – When prepaid cards are loaded with bitcoins, institutions often charge small fees of at least 1 percent of the amount being loaded. Others charge a bit higher particularly when smaller amounts are being loaded.
- Foreign Transaction Fee – Spending your bitcoin in a foreign country often entails additional charges ranging from 2 percent to 5 percent of the total amount spent.
- ATM Fees (Domestic or International) – Since withdrawal to fiat currencies are now possible with prepaid cards, banks charge ATM fees that will depend on whether you are withdrawing money domestically or internationally. Charges range from $2 to $4 for domestic withdrawals while it is around $4 to $6 for international ones.
- Online and Retail Store Purchase – Some online and retail stores don’t have additional charges for purchases, but there are others that will bill you a $1 fee for every transaction.
- Currency Exchange Rates – Exchange rates of 0.7 percent to 5 percent are automatically charged once your bitcoin funds are converted into the fiat currency. The fee varies depending on the service (e.g. withdrawal or payment) you are using.
If you want to try one now, there are a lot of choices out there. You can proceed to Cryptosupermarket for a comparison of some of the best bitcoin prepaid cards in terms of fees and other features.