Coinbase One - 4% back with BTC
 

Hello All - apologies if this is covered elsewhere, but curious on your thoughts on the recently launched Coinbase One credit card.

2-4% cashback in BTC (up to $10K monthly), depending on assets held (maximum 4% requires $200K in assets)
Requires an annual Coinbase One subscription ($49+)
Non-taxable as it's a rebate - not reported on 1099 per FAQ

Coinbase One Card · Coinbase

If you are OK holding $200K in assets with Coinbase, it seems like a viable card for everyday spending (non-travel, non-dining).

Thoughts?

But taxable if you sell it. Guess the question is what's the cost basis on the rebated BTC? If it's the market price when rebated, true 4% cash back and great. If $0, not so great.

Why would anyone do this? I transfer all my Rakuten points automatically to Amex. No AF, no need to deposit cash, no tulip coins (ie BTC).

the biggest issue with this card is nobody with any sizeable amount of crypto, let alone 200k worth, should be holding it in a coinbase wallet

Isn't that one of the biggest selling points of crypto? You can hold it yourself - no need for financial institutions?

Then they want you to hold it with them without any type of insurance or anything. Should make anyone think twice.

i think a lot of people dont understand how crypto works underneath. they buy/sell/stake/etc crypto via coinbase just like how they trade stocks on RH, and it feels like the most natural and convenient thing to do