Interested in converting your reward miles into bitcoin? Go to bitcoinformiles.com, fill out a request for quote and hit “submit.” Within a few hours, you should expect a bitcoin offer for your miles.
Bitcoinformiles.com was recently launched by Bitcoin Brands Inc., an Ann Arbor, Mich.-based company that also sells bitcoin ATMs and bitcoin processing tablets. Owner Peter Klamka said there have been more than a hundred hits on the Bitcoin for Miles website from people interested in exchanging their miles for bitcoin.
“I’ve been overwhelmed by the response to the website,” Klamka said. “People want to turn their miles into bitcoin. It’s serving a customer that has a desire to own bitcoin.”
Klamka has promoted Bitcoin for Miles with ads on craigslist, backpage.com, Google Adwords and other Internet classified ad websites.
The Bitcoin for Miles website explains that it will buy miles and reward points from all major airlines and various credit card companies and hotels. As of last Thursday, Klamka said he has completed five bitcoin for miles transactions. He has not yet bought any credit card company or hotel reward points, but he expects he will soon. The bitcoin offers will vary based on the type of miles or points. Thus far, Klamka has paid 1.5 cents per mile. The website says the average seller receives between 1 and 1.7 cents per mile or point.
Once a seller authorizes a transaction, Bitcoin for Miles sends the bitcoin to the seller’s wallet. Bitcoin for Miles then resells the miles. Klamka sells the miles to airline ticket brokers.
Sellers can expect to receive an offer for their miles within a few hours. U.S. airlines such as Delta, United and American will usually take three to four hours, according to Klamka.
Bitcoin for Miles will also sell miles to persons interested in buying them. The website notes that selling and bartering frequent flyer miles is against airline policies, but there is no federal or state law restricting such sale or barter except for Utah. In the future, Klamka expects to sell travel tickets and travel services. He plans to advertise Bitcoin for Miles on search engines and travel websites.
Interest in Bitcoin for Miles has come from people in several countries.
“It truly shows bitcoin is a universal currency. It is truly borderless. Travel might be the ‘killer app’ for bitcoin.”