Haha, remember TenX?
That was some 2018 ICO shit right there.
So much hype.
In any case
Back in November 2021 I got this secured credit card with a $200 limit. Had to pay $50 just to get $200 worth of credit, but whatever. The point of the card is to build up a credit score. The expectation was that after six months the card would be upgraded to like a real unsecured one with a proper limit. I did get a limit increase a few months ago, but it was only from $200 to $500 and I never got the $50 back (I guess I have to close the card to get the $50 back... so long $50).
So $500 isn't a terrible credit limit. I'm not looking to carry a balance or anything... especially with interest rates being like 25% due to 'inflation' and the poor state of the economy (high default rate). $200 was kind of ridiculous because I'd buy groceries like one time and be maxed out. $500 was a much more convenient buffer, but when I looked at what was holding my credit score back... it was the fact that I only had access to a $500 credit line.
Today I was bored so I figured I'd apply for another card. My credit score is out in no-man's land. The good cards recommend a score of 690 or higher and the mid-grade cards have a maximum recommendation of 670... lol... yeah... I'm right in between that.
So I applied for a mid-grade card to increase the chances it would be approved. Immediately lost 1 point to my credit score for the hard-pull that occurs during application. I'll probably get the point back next month though so it's a non-issue.
My application was approved instantly online and I went with the same company as my secured card. I was surprised to see that my new card, with a $3000 limit, was instantly viewable on the app immediately. Wow, that was quick. No waiting whatsoever.
I did lie on my application a bit.
I said I was a Self-Employed "Broker" who makes $30k a year. Is that even a real thing, or do Self-Employed Brokers not exist because of regulations and whatnot? I told my girlfriend about this and she said her ex lied on an application and he got perma-banned for it. I'm not worried about this happening but ya never know. It might. If they follow up on it, it won't be that difficult to show that I'm good for the money. Hell, I could pull out $3k and plop it into my bank account right this second no problem. None fucks given.
I figure they won't look into it because I already have a secured account with them, and $30k isn't exactly a lot here in Murica. Definitely don't want to be like... YEAH ONE HUNDRED PERCENT ALL IN ON CRYPTO BABY LETS GO! Just like a job interview, people in positions of authority looking to mitigate risk are not impressed by gamblers.
So yeah just went from $500 limit to $3500 just like that.
Within minutes really... now I just have to wait for them to send me the card. Feelz nice. Again, not really looking to carry a balance on these cards, but the buffer will be very nice and the higher limit will further increase my credit score over time. It's weird how you have to ding your credit a bit in the short term to increase it over the long term, but such is the way of all investments, amirite?
If I really want to I can also leverage the card to go long on crypto in a virtual manner. If I pay all my bills on the card and jack the balance up, that's pretty much the same as not selling crypto to pay bills, essentially longing crypto another couple thousand dollars. Definitely won't be doing that unless we get another huge crash. Certainly an option though.
It's also a bit funny how a 105%+ overcollateralized loan to go long/short on exchanges has just as terrible of an interest rate as these credit cards. Where is the risk to justify an interest rate that high? I guess it must be less about risk and more about supply and demand. If people are willing to pay the absurd rate on their own money then that's exactly what will happen. Gamble gamble casino time and all that.
Bitcoin is not correlated to stonks.
This is going to become more and more true during this next recession methinks. Eventually Bitcoin is going to completely decouple from traditional finance because it's already comically oversold, while the legacy system can still bleed out way more than what we are seeing now. At a certain point this perceived correlation will melt away... in fact it already doesn't exist on something like a 5-year timeline.
Last 5 years.
Seriously though...
Let's be honest: do these two charts look anything like each other in the slightest? The only correlation here is that money and value in society are liquid, and we can think of them as actual bodies of water that slosh around. The perceived correlation is not only false, but also meaningless. No useful information can be derived from such a thing.
That being said, looking at the charts, I think the next recession should bring the stock market to at least the peak of Q1 2020 before the COVID V-shaped move. Looking at S&P 500, that's a crash from 3800 points to 3300, which is another 17% drop in the stock market. Huge dips for stocks, barely nothing for something like Bitcorn.
Gimmit more Bigcorns
If/when that happens I think BTC has other 25%-30% drop to go, but again that only takes us to around $15k. And that's not like some questionable "omg are we going to crash even more" kind of bottom. That's straight up rock-bottom gutter-trash levels with all the bulls scooping up as much as they can without increasing the price.
Will it take 2 years to recover in a "multi-year" crypto winter? Highly doubt that considering how this all went down. We never saw the mega-bubble we were looking for. Many high-level executives and developers are realizing that crypto is the future and jumping ship to the new thing. We're already oversold and banks, corporations, and governments are still dipping their toes into the market. There's really just no telling where this is all going, but nothing about these circumstances screams, "stable baseline for two years straight". Volatile asset is volatile.
Conclusion
I have an x7 higher debt limit.
'Inflation' go brrrr.
Crypto is the future.
Not correlated to old outdated systems in any meaningful way.
Ride it down to zero frens.