Conversation

Replying to
Thus tweet hits home today. Thanks to Web3 DeFi markets, the ENS tokes had instant market value and will be taxed as ordinary income. In the dinosaur age that was 2013-17, airdrops were meaningless until one of the centralized exchanges listed them and there was a price.
Quote Tweet
on web3, making money is easy but doing your taxes is really hard
1
47
I mistakenly thought I could treat the airdrop as zero-cost-basis and report any appreciation as capital gains when sold. This was true when airdrops were illiquid for months. Now, in the US, you owe taxes on market price at the time of claim, even if it later goes to zero.
2
32
Milestone: did my first DeFi token swap, trading a quarter of my ENS for ETH to hedge against potential tax losses in case it goes to zero. Planning to hang in to the rest. Yet another case of Web3 sucking me in to do something earlier and more consequentially than I planned to.
1
34
This might be a characteristic of the medium. It’s really hard to do small experiments. I mean you can’t buy a tiny fraction of a domain name. It’s 0/1. And that has… consequences.
4
28
I *want* to stay on the tech+culture side of Web3 and ignore the speculative frenzy, but it’s tough. You may not be interested in DeFi, but DeFi is interested in you. The 800lb DeFi gorilla black hole is the King Kong of bored apes.
2
71
Yes, this is almost certainly true. Carlota Perez installation phase going on. Overbuilding of capacity, crash, then everything comes true in deployment phase, 10 years later than the frenzy people thought.
Quote Tweet
Replying to @vgr
I think this bubble will be similar to dot com: the market will very much get ahead of itself, but the long-term thesis is correct. Take advantage of the current ride, get out when it’s absolutely insane, then stay interested during the bear market for long-term investments.
1
64
If you need help, talk to someone 40+ in tech. I haven’t seen a scene like this since 2000, when I joined a Web1 startup briefly, mere months before the dot com crash. Hedging is not hard. What’s hard is taking the downside scenario seriously enough at the peak.
4
101
Replying to
Quote Tweet
Crypto advertising on buses means the bubble is approaching the "shoeshine boy giving stock tips to Joe Kennedy on the eve of the 1929 Wall Street Crash" stage. If you're in it, now's the time to get out—there aren't enough marks left to fleece, they're having to advertise. twitter.com/MrMBrown/statu…
1
Replying to
I’ve learned not to try to time this shit ever. All you can do is have a continuously hedged position. Assume the boom can continue indefinitely OR crash tomorrow for a decade, and be prepared to weather both. If you can actually time it, you can short it. All else is cheap talk.