CryptoTaxGuy

Jason Schwartz, tax partner @ CahillNXT. Still uses em dashes. Tweets are not advice. [email protected]

[CryptoTaxGuy @CryptoTaxGuyETH]

1. Here's a link to most of my crypto tax articles: https://t.co/ZXooGugjap

2. In addition to my day job, writing & speaking engagements, I oversee the 501Foundry, a web3-friendly pro bono 501(c)(3) incubator. Reach out if you have a charitable purpose.

[Dev @zkDragon]

Bitcoin's proof of work has done around 2^96 hashes over all time. Breaking the ZKP's in Zcash requires a minimum of 2^120 elliptic curve operations assuming ECDLP. If you had a dedicated ASIC, an elliptic curve addition would cost around 10-100x more than SHA2.

So today breaking an Elliptic curve would cost around 1 billion Bitcoin-hashrate equivalents. AKA a billion times the hardware buildout of all Bitcoin mining ASICs, dedicated to break this.

If a hypothetical billion X improvement came in, you'd need a chip buildout on the level of bitcoin mining before you can break anything. While competing against all the hyperscalars for fab-space.

AKA plenty of warning time, for a recovery process that takes a couple day response time max.

[CryptoTaxGuy @CryptoTaxGuyETH]

Also my quant.

[The Doomed DAO @thedoomedxyz]

In case you forgot... here is some good advice

Do Nothing by @XCOPYART

[Dev @zkDragon]

What was the economic incentive to solve any of the OpenAI problems?

Meanwhile ECDLP has had over 3k researchers with 800+ published papers, and it never stopped. There are yearly conferences held to discuss failed attempts at breaking ECDLP, so people can learn from each other and try to break it better.

The NSA is the world's greatest hirer of mathematicians. They got caught trying to backdoor Discrete Logarithm systems three times. The last being caught in 2015.

After each one, waves of the most competent cryptographers scoured for new attacks. Most things that improve attacks by like 10% are really the same things that make implementations of EC operations faster.

Theres armies of people, on the latest frontier models, making their cryptography blazingly fast, like us @ZakuraZcash. You see open research projects constantly improve the state of the art.

No human or AI has had any elliptic curve speedup approaching even a 2x, yet folks are freaking out that cryptography is broken?

The OpenAI problems being broken is not remotely the same as ECDLP having a real improving attack.

Even if there was an attack, its insane to imagine it becomes "Break ECDLP on your laptop". It would go from "impossible" to "possible with all the world's GPU's dedicated for a decade", to "possible with 1 year".

Any of those is a real warning shot to go trigger the ECC freeze.

[CryptoTaxGuy @CryptoTaxGuyETH]

💯

[Sean Bowe @ebfull]

I think Justin Drake's latest alarmism/vagueposting is going to do a ton of damage in multiple ways. It's basically a huge self-own for their own advocacy work on quantum stuff.

Threats from quantum/AI are real, and teams throughout this industry are making considered decisions about how to respond to those risks in a practical way, and to help their users navigate the uncertainty.

Some of those teams have really good cryptographers with an excellent grasp on the decisions they can make, others have to take their cues from trusted experts. There are so many dimensions to optimize along! And due to the complexity involved, it's almost impossible to explain this stuff to non-cryptographers.

Experts have to be cognizant of all this, and of their responsibility to be levelheaded.

After the fog clears up and people learn from their cryptographer friends what is actually going on, they're going to discover this was (at best) an unintentional marketing stunt and a lot of trust will be lost. And nobody will really know what to do...

This is a shame, because they are directionally correct. It actually meant something when they sounded the alarm before. They've just gradually descended into unhinged predictions without feedback to discourage it.

Can anyone, I mean seriously anyone, justify this debacle? It permanently colors all the legitimate concerns/predictions about classical crypto going forward. By their own admission, there was no new information that drove this. I think Justin Drake should explain how he thought this was the right approach, even if he genuinely believed what he was saying.

Baffling.

[CryptoTaxGuy @CryptoTaxGuyETH]

This is my quant.

[mert @mert]

@notthreadguy Now that youre a spot chad, just shield and chill

ppl will realize how retarded this panicanism is in about a week

[CryptoTaxGuy @CryptoTaxGuyETH]

@Punketo_eth You too. Stay sexy.

[CryptoTaxGuy @CryptoTaxGuyETH]

Not my usual style to post half naked photos, but what the hell... 🤣

Also 49, no AI, no photoshop, pure human labor.

I encourage people to compete on health, not wealth rankings or lambos.

More health, more family = true wealth, and happiness.

[CZ 🔶 BNB @cz_binance]

Not my usual style to post half naked photos, but what the hell... 🤣

Also 49, no AI, no photoshop, pure human labor.

I encourage people to compete on health, not wealth rankings or lambos.

More health, more family = true wealth, and happiness.

[CryptoTaxGuy @CryptoTaxGuyETH]

NYC’s current mayor is a real scumbag. Glad I don’t live there anymore.

[CryptoTaxGuy @CryptoTaxGuyETH]

@TrustlessState @CamiRusso ❤️

[CryptoTaxGuy @CryptoTaxGuyETH]

US crypto securities law professors will bookmark this tweet.

[Beanie @beaniemaxi]

I think after encouraging users to farm points for a couple years you have kind of a duty to launch the token if you're not going to compensate them some other way. Some spent a lot of time, money and effort on accumulating XP. Not great.

[CryptoTaxGuy @CryptoTaxGuyETH]

@crypto_bitlord7 It’s me. I deliberately bought. As opposed to all my earlier accidental buys.

[CryptoTaxGuy @CryptoTaxGuyETH]

@lex_node Wait what 😂. I didn’t know that either

[CryptoTaxGuy @CryptoTaxGuyETH]

Very thoughtful article. Worth a read.

[gabriel shapiro @lex_node]

Tokenized stock volume is almost all broker IOUs on broker chains. Companies tokenizing their own shares will not do it that way.

They will use Ethereum mainnet (the commons), or an L2 they run themselves--a "company town" with a guaranteed open-gate. https://t.co/jOSIaZT4B5

[Vi, that trans girl with the QR code tattoo @rollergirlVi]

Sounds like a good reason to join @zReadyMouse, @kate_stapes, and I at @EXXXOTICA NJ later this month to learn how @Zcash can help immunize you against having your creator earnings seized.

Visit https://t.co/aTH8vSIQeN to learn more about this and where+when to see us in person!

[CryptoTaxGuy @CryptoTaxGuyETH]

@nextalphaa Native L1 privacy isn’t a moat. There are plenty of coins with native L1 privacy. You are again showing you didn’t read my thread and would rather add noise than discourse to the TL.

[CryptoTaxGuy @CryptoTaxGuyETH]

@nextalphaa You clearly didn’t read the thread I posted.

[CryptoTaxGuy @CryptoTaxGuyETH]

@nextalphaa Zec is a reserve asset with native privacy. USDC is not a reserve asset. ETH might be a reserve asset but doesn’t have native privacy, which means you need to rely on a bolt-on protocol. So far, the anonymity set for ETH on any one protocol is vanishingly small.

[CryptoTaxGuy @CryptoTaxGuyETH]

@PorterNovaX That was me. Can you send it back. u1mz4fwpwa4qyrs0d8f8ctpz4aqcuvj4a6zqve25lty5frndumtvh8dlzt6lsnlmsyhrdtf8v4mn2gfedlz6e9pn9y0kr2s25suy0u6kll748ykmdz3n6fyle9dtakt5f4z2em9t4z0gse2g6092vanxpwr5n5h2psg45fadvsng9kdl6m

[CryptoTaxGuy @CryptoTaxGuyETH]

@sqda @ripcache @punkvandelay Great pickup. Congrats!