💳 Is Coinbase’s Bitcoin Rewards Credit Card Too Good To Be True?

In today’s newsletter I discuss if the new Coinbase Bitcoin rewards credit card is too good to be true, Cher is performing on SNL for the first time in 38 years, Disney launched their newest vessel Disney Destiny, AWS is spending $50 billion on government AI data centers, Ripple Labs now has a valuation of $40 billion dollars,
a 1939 first edition copy of Superman No 1 just shattered the world record when it sold at auction for $9.12 million dollars, and LeBron James began his record-breaking 23rd NBA season.

Let’s get into it.

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💳 Is Coinbase’s Bitcoin Rewards Credit Card Too Good To Be True?

The financial world is witnessing a major shift in the credit card rewards programs that customers are signing up for. Now with the introduction of the Coinbase One Card, powered by the American Express network, there’s been a huge uptick in search traffic as people are trying to learn more about this rewards program. This credit card is making headlines because it allows users to earn up to 4 percent back on all eligible purchases in the form of Bitcoin. This offering is available exclusively to Coinbase One members who pay an annual membership fee which starts at $49.99 dollars per year for the Basic annual plan.

Full disclosure: I’m not a member (yet).

The combination of a familiar trusted payment network like American Express with the high yield of 4 percent in a volatile asset like Bitcoin is what has captured the attention of millions of consumers. Early adopters of the card have collectively deposited over $200 million dollars in assets on the exchange to maximize their rewards and have spent over $100 million dollars in total purchases. 

To fully understand the appeal of this card you need to know exactly how the 4 percent Bitcoin back is earned. The Coinbase One Card is issued by First Electronic Bank and operates on the American Express payment network. The exact percentage of the reward is tiered and is dependent on the cardholder's total assets on Coinbase at the time of the purchase. For customers who have $200,000.00 dollars or more in assets on Coinbase they qualify for the top 4 percent reward rate. Customer’s purchases on this tier are capped at the first $10,000 dollars in eligible purchases per calendar month. Once that $10,000 dollars monthly cap is exceeded all subsequent eligible purchases for that month will revert to a 2 percent Bitcoin rewards rate.

So all ya’ll charging more than $10,000 per month to your credit card will have to settle for only 2 percent back in Bitcoin. I call that 1st world problems.

The new Coinbase One credit card is physically notable for being a stainless steel card that  weighs only 17 grams, and is etched with the original Bitcoin Genesis Block. Rewards are awarded by being deposited directly into the cardholder's Bitcoin wallet on the Coinbase platform. As with any investment or reward in the form of an asset like Bitcoin users are responsible for any tax liability they incur.

This is a big gotcha, but we’ll come back to it whenI walk you through an example a little bit later.

The Coinbase American Express card not the only player in the growing crypto rewards space. Several other financial institutions and cryptocurrency platforms are also offering innovative ways for users to earn digital assets on their everyday spending.The Gemini Credit Card offers rewards in Bitcoin and more than 50 other cryptocurrencies with no annual fee. Then we have the Crypto.com Visa Signature Card, which offers tiered rewards paid in the exchange's native Cronos or CRO token (never heard of it, but ok then). Even mainstream payment platforms like Venmo are getting involved with their Venmo Credit Card, which allows users to automatically convert their standard cash back rewards into cryptocurrencies like Bitcoin, Ethereum, Litecoin, or Bitcoin Cash (is that still a thing?). Other cards like the Upgrade Bitcoin Rewards Card offer an unlimited 1.5 percent back in Bitcoin when purchases are paid down. These examples highlight a competitive and rapidly expanding industry focused on integrating digital currency into the traditional rewards ecosystem.

The emergence of these cards is happening within the massive financial infrastructure that is the global credit card rewards market, which is valued at $1.2 trillion dollars as of 2023, and is estimated to grow to $2.5 trillion by 2032, with a CAGR of 8.1%.

The credit card market size itself is HUGE, having reached $608.71 billion dollars in 2024 and is expected to grow to $930.03 billion dollars by 2029 at a CAGR of 8.9%. This massive pool of consumer spending and reward payouts which saw major U.S. banks disburse an estimated $35 billion dollars in rewards in 2019 represents the prize that companies like Coinbase and American Express are now targeting with their Bitcoin rewards program. 

I think we’re in serious need of an example to break down how this rewards program could work for the average American household. Let’s consider a family that charges on average $2,500 dollars per month for their regular expenses like food, gas, clothing, and entertainment. They have over $200,000 in assets on the Coinbase platform, so they qualify for the 4 percent rewards tier. This monthly spending would generate $100.00 dollars in cash back. Given the recent Bitcoin price of $87,000 dollars, that $100.00 dollars would instantly convert to approximately 0.001149 Bitcoin which is deposited into their Coinbase Bitcoin wallet. If this person maintains that $2,500 dollars in monthly spending for a full year they would earn $1,200 dollars in Bitcoin rewards annually, which is a total of 0.013793 Bitcoin (in today’s prices) in a year simply from their everyday purchases. It is critical to note the tax implications of receiving this. While traditional cash back is usually a non-taxable rebate, the IRS considers cryptocurrency to be property. That means the $1,200 dollars worth of Bitcoin a customer earned is viewed as ordinary income, and taxed at the user's income tax rate - not the lower capital gains rate of 20%. For a high income earner subject to the highest combined Federal and State tax rates, such as an estimated 37% percent Federal rate and a 11% New York State rate, then the total tax on that $1,200 dollars in Bitcoin rewards could approach 48%, meaning the user would owe approximately $492 dollars in combined Federal and New York State taxes on the rewards alone. If they had just taken those credit card rewards in the form of cash-back or airline points then they wouldn’t have been taxed. This is critical to understand with the new Coinbase One credit card.

Nonetheless, people are still excited about the Coinbase One Card by American Express. Maybe it’s because people are so wild for Bitcoin, or maybe it’s just because most Americans are bad at math. Whatever the reason, there’s been a spike in searches for info about the card when it was announced back in June of 2025, and there’s been a renewed focus on the card now as it has begun to roll out. It’s one of the most talked about and searched for credit card rewards programs on the internet right, which demonstrates how strong of a market appetite there is these days for all things crypto.

By offering up to 4% back in Bitcoin rewards the Coinbase One Card by American Express has set a new standard for cryptocurrency rewards programs. Just read the find print and be sure to check with your accountant before you sign up. You’ll thank me later!

Quick Hits

💵 Business

AWS announced they’re investing $50 billion dollars to expand their AI and supercomputing infrastructure for U.S. government agencies. This investment, which is set to begin construction in 2026, will add 1.3 gigawatts of capacity across AWS Top Secret, AWS Secret, and AWS GovCloud U.S. regions to support missions like national security and scientific research. AWS Chief Executive Officer Matt Garman said this move will help to remove technological barriers and make the government’s use of AI more efficient, which is good news because we certainly don't want the government being sloppy with their AI and cloud computing.

🎤 Entertainment

Cher is set to appear on Saturday Night Live as the musical guest on December 20, 2025, marking her first time returning to that role since 1987. The Oscar, Emmy, and Grammy winner will appear on the final episode of 2025, which will be hosted by actress and singer Ariana Grande. It’s comforting to know that even after four decades, nobody is willing to just let Cher turn back time and relax.

🪙 Crypto

Ripple Labs now has a valuation of $40 billion dollars following their $500 million dollar funding round earlier this year. With that fresh funding, Ripple Labs has been aggressively expanding into traditional finance. To bridge crypto and Wall Street, CEO Brad Garlinghouse spearheaded $2.25 billion dollars in acquisitions this year, including the purchases of treasury management platform GTreasury and prime broker Hidden Road. Ripple Lab’s XRP now has a market cap of over $132.23 billion dollars, Ripple is ready to compete with the big boys of finance on Wall Street.

💻 Cruising

Disney Cruise Line's newest vessel, the Disney Destiny, a Wish-class ship with a Heroes and Villains theme, has embarked on its maiden voyage from Fort Lauderdale, Florida, on November 20, 2025. This massive 144,000 gross ton ship can carry 4,000 paying passengers, and features the first Marvel character statue, Black Panther, in its Grand Hall. My family is already asking when we can set sail on the new Disney Destiny.

📖 Comic Books

A 1939 first edition copy of Superman No 1 that had been found in a Northern California attic, and it shattered the world record when it sold at auction for $9.12 million dollars. The 86 year old comic, which earned an unprecedented Certified Guaranty Company 9.0 grade, easily surpassed the previous record of $6 million dollars for a similar issue of the famous comic book. In this housing market, it seems the only way to afford a house in California is to stumble upon a vintage cardboard box full of millions of dollars in vintage comic books.

🏀 Sports

LeBron James began his record-breaking 23rd NBA season in November after being drafted number one way back on June 26, 2003 at the age of 18. Since then he’s cemented his legacy as the NBA’s current GOAT. LeBron James became the first active billionaire in the NBA in 2022, and boasts a net worth of approximately $1.3 billion dollars, with career earnings from his contracts of over $581 million dollars.

For the current 2025/2026 season with the LA Lakers, the four time champion exercised his player option for a guaranteed salary of $52,627,153 dollars, proving that you can absolutely buy happiness, assuming it comes in the form of a record-breaking NBA contract.

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The Business Behind The News is written, edited, and published by Chris Thompson.