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How To Convert A Gift Card To Bitcoin?

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How To Convert A Gift Card To Bitcoin

With cryptocurrency usage consistently increasing among the public and business sectors today, it perpetuates a growing number of instances in which individuals are actively  seeking to convert cash and other forms of money into Bitcoin and other popular cryptocurrency alternatives like Ethereum (ETH) and UDST (Tether).

Perhaps it may be surprising to some that the concept of converting gift cards to Bitcoin is not all that new, but the underlying processes implemented to do so have been refined over the years. As far back as 2013 there have been platforms which have sought to make the conversion of gift cards to BTC possible for individual members of the general public and businesses, albeit not all have been efficient, seamless, secure and dependable, especially in the earlier stages of the industry pivot.

An Economic Shift And The Introduction Of BTC

It is helpful to briefly retrace the timeline to get an accurate look into how the industry has evolved to being able to convert gift cards to Bitcoin. Bitcoin was launched in 2009 on the heels of the US housing market crash that led to the collapse of Lehman Brothers Investment Bank and Bear Stearns.

Such events led to the US bank bailout which was codified into law as the Emergency Economic Stabilization Act of 2008. The bill was used to effectively redirect $700 billion of government funds primarily into failing banks by purchasing bad assets through the Troubled Asset Relief Program.

The 2008 crash is believed to have strengthened a growing sentiment which could be classified as uncertainty and a lack of faith in globally-implemented financial systems that had already been brewing prior to the crisis.

In 2009, when Bitcoin began circulating, there was already a general understanding that a greater degree of individual control was warranted in global economics and the universal currency trade.

BTC And Crypto: A New Way For Money To Flow

Bitcoin and cryptocurrency was heralded as an advance and progress in the way money could be minted, managed and moved. A digital form of money which provided a way for currency to be created and managed in a decentralized environment. The Bitcoin blockchain, and Bitcoins, the digital coins which move on the network, essentially gave a degree of ownership to the individual and deconcentrated power from centralized authorities, encouraging transparency amongst all participants, with the secured public ledger system that could be used to verify all transactions presented and completed within the network.

Digital money had been a concept that had been hypothesized, theorized, and even developed before, but Bitcoin culminated into the first attempt that was deemed successful. A new way besides use of large centralized payment processors like visa and mastercard had proven to be possible and revolutionary with the use of blockchain technology.

After almost two years in existence, in 2011, the digital currency broke through the $1 level for the first time ever, never to look back. Between 2012 and 2013 the first models used to convert gift cards to Bitcoin and other cryptocurrencies would begin entering the public sector.

Use A Gift Card To Buy Bitcoin

The first platforms to spring up with capabilities to exchange gift cards for a value in Bitcoins were largely not very flexible, as could be anticipated at the start or expansion of any industry or market. Some models are restrictive and have inconvenient or expensive payment gateways, some are not secure, clear or user friendly, and some have lacked in other areas.

In 2018 BitCard® introduced an innovative approach to the gift card industry. BitCard® facilitates a funnel process that works by initially supplying gift cards redeemable for Bitcoin to global gift card resellers who are aligned as official partners. Partner resellers then in turn deal directly with gift card distributors who furnish retailers and merchants in direct contact with individuals and businesses which ultimately purchase and circulate the BTC gift cards at the consumer level.

Gift cards supplied by BitCard® are redeemable for BTC in just three easy steps, making the process of not only converting gift cards to Bitcoins simple, but also replenishment, purchasing products and services, along with sending and receiving Bitcoin in the digital environment. BitCard® designed a way for gift cards to be bought physically and digitally, while making conversion to BTC manageable through an online process in which the web platform is leveraged in order to redeem Bitcoin gift cards for immediate use by the individual holder.

BitCard® Institutes A 3-Step Process To Convert Gift Cards And Redeem Bitcoin

The process of converting BitCard® gift cards to BTC is rendered in a user-friendly, three-step format on the BitCard® online and mobile-accessible web interface. In the first step of the redemption process individual card holders begin by submitting information needed to complete a KYC verification through the secure BitCard® web portal.

The KYC verification protects the network from bad actors and BitCard® individual and business users while simultaneously encouraging transparency through the redemption process used to convert gift cards to Bitcoin. After completing the KYC verification the newly registered user is able to advance to the second step of the redemption process.

Account Validation And Redeeming Bitcoins For Use

The first of the final two steps required in the redemption/conversion process is for the registered user to validate their BitCard® gift card directly on the official redemption site. This simply requires the new user to input the validation number located on their physical or digital BitCard® BTC gift card into the clearly labeled box.

Unique validation numbers makes every BitCard® produced identifiable. This encourages an environment in which account information and transactions are kept private in the case of each individual gift card holder.

The final step required in the redemption process is just that – redemption. Upon establishing a new BitCard® user account and verifying the gift card, individual card holders are then able to begin using the redeemed BTC reflected in their BitCard® supported digital wallet immediately thereafter.

Real-time BTC balance will be displayed in the user’s digital wallet, which has a unique address associated with it, giving individual users the ability to send and receive BTC at Bitcoin network cost. The new digital wallet is unique to the individual account, which means that login information should not be shared with anyone who the user does not desire to be granted access.

Can Other Gift Cards Be Used To Purchase Bitcoins On The BitCard® Platform?

It is true that BitCard® gift cards are disseminated and managed in an intricately designed proposition which gives individually registered users the power to purchase Bitcoin gift cards and convert to Bitcoins accepted across the globe by a number of digital platforms or any one of thousands of physical BitCard® gift card merchants and retailers. There are also additional ways that individuals can take in order to leverage the BitCard® platform and redeem gift cards in exchange for Bitcoins.

As a work around, since BitCard® BTC gift cards are available for purchase at the retail level, theoretically customers can buy BitCard® gift cards in traditional physical or digital retail scenarios with cash, debit or credit cards supported by processors like Visa, Mastercard, Discover or American Express and other payment methods in a one off transaction scenario supported at the retail level.

Do Other Platforms Enable Gift Card Exchange For BTC?

The question comes up if there are other platforms which facilitate the seamless conversion of gift cards to Bitcoin or other crypto. In short, yes, there are several platforms which have an established system that facilitates a gift card exchange to BTC or vice versa. Binance accepts visa gift card purchases for crypto, along with authorized debit and credit cards.

The purchased cryptocurrency is then made available to the purchaser in a digital wallet on the Binance platform. This model uses custodial wallets, like those in use on the BitCard® platform.

Similarly, Coinbase has a digital process that allows its users to buy crypto with debit, credit or gift cards online. Coinbase also holds cryptocurrency assets purchased by the user, on a custodial digital wallet on the digital platform, in the same manner as BitCard® and Binance in this specific regard.

Added Protection With FDIC Backing

The way in which the models implemented by Coinbase and Binance differ from BitCard® is with regards to the FDIC backing which protects funds held by BitCard® in US banks. The extra peace of mind which comes from FDIC backing can prove to be a significant added value to BitCard® platform users, and potentially influence the decision to utilize the digital platform over others.

All Platforms Not Created Equally

BitCard® seeks to continually evolve its proposition with an aim to meet the needs of individuals and businesses in the market for BTC gift cards with intended personal use, or for gifting others, rewards programs, loyalty schemes or other uses. BitCard® strives to make it both simple and user-friendly for individuals to convert gift cards to BTC and use in the digital environment for in-person and online scenarios.