A lot of people enjoy spending Bitcoin on various goods and services, but the Fold app has been one of the most prominent solutions to spend digital currency at your local Starbucks. Bitcoin enthusiasts can purchase Starbucks gift card balances through the Fold app, and get a refund for their unspent balance 24 hours later. All in all, a very convenient procedure, but there are certain misconceptions as to how this service works.
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Fold App is More Complicated Than People Assume
Dealing with the Fold app itself is very straightforward, and the process couldn’t be more convenient, in fairness. Instructions are clear and direct: send an amount of Bitcoin to the designated address, wait for confirmations, and the Starbucks gift card will be added to your account automatically.
But what people often tend to forget is how Fold has no direct relationship with Starbucks, despite offering this type of gift card functionality with Bitcoin. What Fold does is buy Starbucks gift cards from other holders at the lowest price possible, and resell those balances to Bitcoin users. For those wondering where the 20% Starbucks discount comes from when using Fold, there is your answer.
At the same time, Fold relies heavily on the availability of Starbucks gift cards, which might not always be the case. There will be times when there is no purchasing option available through the Fold app, simply because the supply of gift cards had dried up. None of these cards and balances are purchased from Starbucks directly either.
Such a free market model is a great way to get access to cheaper Starbucks gift cards, as a lot of consumers tend to forget about their card balance. Moreover, it is incredibly difficult to consume the exact balance of such a gift card, and having the option to resell remains funds is beneficial to consumers all over the world.
Fold determined there is a substantial market for Starbucks gift cards, especially when trying to resell these balances in exchange for Bitcoin. So far, a lot of consumers have been enjoying their 20% discount at Starbucks, which also means the Fold supply of gift cards has been dwindling at an accelerated pace.
All in all, Fold is one of the most convenient ways to spend Bitcoin on everyday items and services. The company is expanding their offering to other stores and brands as well over the coming months, creating additional use cases for Bitcoin enthusiasts in the United States. So far, there is no official word on expanding to international locations as well.
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