Coinbase Card - very big news? Also Bitcoin price analysis (How high can we go?)
What is Coinbase launching?
Coinbase has annouced a launch of Coinbase Card, a Visa debit card that lets customers spend crypto in real life scenarios.
Coinbase Card is powered by customers’ Coinbase account crypto balances, giving them the ability to pay in-store and online using different cryptocurrencies. The crypto to fiat conversion is done at the time of transaction.
Coinbase Card, will instantly convert crypto to fiat currency, such as GBP, which is used to complete the purchase. This means you do not have to convert crypto beforehand like you do with Wirex (and it will work similar to how TenX was)
How will it work?
To help customers manage their spend, Coinbase have also launched the Coinbase Card app, which enables customers to select which of their crypto wallets they will use to fund their Coinbase Card spending.
Coinbase Card supports all crypto assets available to buy and sell on the Coinbase platform so users will have a decent amount of choice including Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Ethereum Classic.
The app also offers instant receipts, transaction summaries, spending categories, and more - pretty much anything that online banking app should have.
Fees and limits?
Plastic Card Issuance Fee: £4.95
Domestic and International Cash Withdrawal Fee: free until £200 (1% domestic and 2% international after)
Domestic Purchase Transaction Fee: free
Intra-EEA Purchase Transaction Fee 0.2%
International Purchase Transaction Fee: 3%
Crypto Liquidation Fees: 2.49% of transaction
So that means for domestic purchases if you buy something for £100 you need to pay £102.49, abroad even more.
As for limits the daily spending limit is £10k, monthly £20k and yearly £50k.
So is the card good and the news big?
The card is huge news and a good step for wider adoption - it could make crypto much easier to use for wider audience since Coinbase is so popular. Fees are a bit lower than Wirex since it has a commission fee when exchanging crypto to fiat and also monthly fee. However Wirex also has crypto cashback so it evens out. Fees of these type of normal for cryptocurrency cards.
However unlike Wirex (and most current cards), Coinbase Card converts in real time so you don't need to sell in advance which is great.
The cheapest solution for crypto to cash is still selling on Coinbase Pro and then sending to your bank account via SEPA. (around 0.15%-0.25% fee).
For now the card will only be available in the UK but they will expand it to other EU markets soon.
Price update
We have seen a correction since crazy growth from 4100. I am still bullish long term but I do think that if we do not go over 5200+ again we might see a temporary fall into around 4500 range.
Bitcoin future
Long term ascending channel with bubbles forming and popping
We could go to 3k this year but long term super bullish with potentially around 12k end of this year and 90k end of 2021.
Bubble bursting end of 2022.