The day that many Bitcoiners have been secretly waiting for has finally arrived: Gyft is now stocking Walmart Gyft cards. Vinny, Gyft’s CEO, announced the addition to the Gyft arsenal via Twitter and a Reddit post earlier today.
Bitcoiners are now able to use Bitcoin to buy Gyft cards to spend at Walmart or Walmart’s subsidiary: Sam’s Club. Everything in the diaspora of consumer items offered by Walmart is now available for purchase with Bitcoin. Gyft offers 3% back in the form of loyalty points that can be used on additional gyft cards. This is equivalent to a 3% discount to users for using Bitcoin. Despite the services that Gyft has offered to the Bitcoin community, some still question why one would go through the trouble of buying a gift card to purchase an item.
Why Would I Use Bitcoin And Gyft?
The fact of the matter is, I can use the instant buy function at Coinbase to purchase bitcoin for 1% + $0.15 in fees. I can then purchase a gift card for Walmart from Gyft and pay using Bitcoin. I would then receive 3% of the fiat value of bitcoin that I just spent back in Gyft points. Some simple arithmetic brings me to the conclusion that, for any Walmart purchases greater than $7.50, I would be better off using Bitcoin via Gyft than cash.
What Walmart (or Sam’s Club) purchases do you make on a regular basis that total more than $7.50? For myself at least, I can name a few: gas*, groceries, etc. Bitcoiners on Reddit seem to agree with me. Some even hope that Walmart allowing their gift cards to be sold for Bitcoin is a step towards Walmart accepting Bitcoin themselves without Gyft as a middleman. Unfortunately, I highly doubt that is the rationale, as Gyft will not reveal their proprietary user data to Walmart.
* To use your Bitcoin purchased Walmart gift card at an unattended gas pump involves the small extra step of exchanging your gyft card for a physical gift card at any Walmart or Sam’s Club customer service center.
Gyft Is A Bitcoin Company
Start accepting Bitcoin, but don’t convert it all to fiat – just convert what you need for cash flow purposes (we have to repurchase gift cards as inventory – our biggest cost, outside of salaries and taxes). The more you keep and spend in BTC the stronger the economy will become. Store as much of your Bitcoin sales margin in BTC, where possible.
Start giving your employees Bitcoin, even if they earn and need fiat to survive. Get everyone in the company using it where possible – we even have the Expensify BTC reimbursement option at Gyft. We give all our employees Bitcoins from time to time in addition to their salaries.
Pay your suppliers in Bitcoin – at least, those who will accept it. It’s getting a lot easier to these days – luckily and circulating Bitcoins is the best way to strengthen this economy.
Don’t hoard Bitcoin in your company either, spend them. They are only worth what they are worth at the point in time you spent them. Have no regrets. We recently paid a real Bitcoin company over 250 BTC in October. They held the coins and made more than 5x their money (in fiat equivalent). I’m really happy for them and it’s good for the economy. We didn’t lose out on that gain – as we had earmarked those coins for them so we booked it at the dollar cost – no loss to us, but a gain to them.
Pass your credit card savings back your customers. We give 3% back for all Bitcoin purchases. All companies accepting Bitcoin should do something like this – because if they are not, they are essentially charging you more than their credit card customers who earn points using a credit card. We have found that 1 in 4 purchases at Gyft now include redeeming Gyft points earned from our 3% back, as part of their purchase. It’s been a fantastic loyalty driver for us. If you convert costs into a benefit and you will find a winning value proposition for customers in everything you do.
The full text of VinnyatGyft’s thoughts on “What is a Bitcoin Company?”
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