Hasu Profile picture
1 Dec, 4 tweets, 2 min read
This is gonna be my last comment on ETH2 staking. Since many ppl have attacked me after projecting a position that I never actually argued for (incl. some nasty PMs - tyvm) I will clarify what I do and don't think:
1) I *don't* think locking ETH in the deposit contract necessarily constitutes a sale. I won‘t be shocked if the IRS argues that it does. But I sure as hell would first try to convince them of the opposite
2) There will be two versions of ETH on most exchanges (ETH + stakedETH, ETH2, beaconETH, whatever you want to call it). There will be many versions of ETH in the market as a whole.

3) If you receive such a liquid staking token, that is most likely a tax event.

And that's it.
Oh and a last one for good measure since it's actually at the root of what bothers me:

4) The beacon chain should have never been launched. Not as a one-way bridge and with no functionality. It creates way more problems than it solves.

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More from @hasufl

30 Nov
Here we go. Coinbase doing exactly what I predicted:
* Users can mint BETH by staking ETH via Coinbase
* they can trade BETH against ETH and other coins on Coinbase
* get staking rewards AND liquidity at the same time

This is very attractive. Other exchanges will follow.
Hope this also buries the "there won't be two assets, only ETH" narrative that was popular for a short while
spent a few minutes thinking through the tax implications of staking on Coinbase.

here's a few things we know with ~reasonable certainty. cc @TokenTax

1) going ETH -> BETH is a taxable event
2) you don't own a token until you claimed it

(cont)
Read 5 tweets
23 Nov
crazy to think that BTC opened 2019 at $3,693 and ETH opened at $131. both have done extremely well obviously (+403% and +351% respectively). crypto is a game of network effects where you want to bet on the category leader. I expect these two to continue to do well together.
BTC and ETH performance over various timeframes
people tend to forget that anyone who bought ETH after 2017 had to endure a very, very rough 2-3 years. but now their strong hands are paying off. BTC has recovered much faster, as it both saw a smaller peak to trough and already was the world's best perfoming asset in 2019.
Read 5 tweets
22 Nov
My @coinbase dashboard hasn't loaded for days, saying "This JWT token doesn't support required scopes". I have some funds there that it doesn't display. Anyone had this before? There's no support email and nothing remotely close at help.coinbase.com/en/contact-us.
Never had a problem with Coinbase myself before so I couldn't confirm it, but I'm starting to realize why so many people say their customer support is basically non-existent

yup, if I log in with a different browser or incognito it tells me my ID isn't verified (it is verified). when I upload new documents it tells me the info on them doesn't match my uploaded data (it does match it).
Read 4 tweets
5 Nov
BTC just outperformed ETH on the day the ETH2 launch was announced. Without news of its own or heightened volume. I'm still very new to trading, but that feels like the market sending a message about the immediate future.
And my interpretation of these events is that even very bullish in-cryto events can currently not hold water to the passive macro backdrop BTC finds itself in.
This is btw one of my favorite tools so far. Interpreting how the market reacts to good and bad information and especially the absence of new information. Markets that feast on hope are crushed by the absence of new info - you can see that everywhere in Defi right now.
Read 7 tweets
4 Nov
Drake and Vitalik both seem to think that disabling transfers in phase 0 can prevent the formation of a secondary BETH asset (beacon chain ETH). I disagree and predict that it will achieve the opposite.
Disabling transfers incentivizes the securization of BETH via staking through centralized exchanges. Those exchanges will allow users to trade in and out of BETH, which will be a significant value-add over non-custodial staking.
As a result, it not only can't prevent the formation of ETH/BETH, but also incentivizes TWO dangerous precedents:
1) centralized/custodial staking
2) securitization of stake (terribly for security, introduces principal-agent problems)
Read 6 tweets
30 Oct
That's prob the best analysis of Bitcoin's social layer I've read. It's fascinating to see Ethereans discover and explain why Bitcoin "is doing it right" and why the winner in this space will maybe be 10% decided by technology, and 90% decided by narrative and coordination.
My thesis in 2018 was that competing L1s that previously criticized Bitcoin's social values and methods will ultimately come around to praising and adopting them. The alternatives are simply not scalable.
Not saying @TrustlessState only discovers these things now, he's been lucid on Bitcoin for a long time. My tweets are more the culmination of a larger trend I've been observing for two years
Read 4 tweets

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