My energy systems are terrible lately + Top 3 Risks of getting paid in crypto
What I'm Up To (Nothing), What I Reflected On (Energy), and What's Occupying My Mind (Employee Crypto Payments)- all part of Allen's Friday Flights
Hello Professionally Curious One!
Would you look at that? I published on time again!
Cheers!
Me
Past Publications
I Do Nothing as My Passive Systems Do Everything, and Sometimes I Feel Guilty
What was the basis of my professional confidence before burnout?
What I’m Up To
TL;DR: Did I do anything this week?
The Things:
Five Crowns is a charming British restaurant in Corona Del Mar serving excellent Prime Rib and appetizers. Close to an incredibly beautiful bluff and beach with plenty of parking too. If you want a more pub-like experience but the same menu, head over to the directly attached restaurant, Sidedoor. Source: I ate at it.
Did you know Amex Platinum gives you free access to Walmart+. Walmart+ gives you free access to Paramount+. This is how you can watch Star Trek Strange New Worlds. You are welcome.
Do you love spicy marinated raw crab? This is the place. Every dish is a hit.
I bought and received the goat of a lego ship - Republic Gunship 75309. I also just got the Millennium Falcon 75192 but I will return this.
Get some great simple Banh Mis at Pickle Banh Mi. Also a good eats.
Finished Season 1 of For All Mankind and it is so god damn solid.
I slept early a lot?
What I Reflected On
TL;DR: I need to revisit my energy.
Lack of Good Energy
Lately, I’ve been losing energy and focus consistently in the afternoon to the point where I simply don’t want to do anything, and can’t find myself reasonably accomplishing anything.
Caffeine wasn’t fixing it.
If I try to stay at my desk and continue all my projects, I have an adverse impact on the rest of my day. It was weary, restless, and my judgement is impaired.
So I’ve started to incorporate 2-4 hour blocks of something else. This week I went to the gym on Wednesday. On Monday I made sure to beat Cult of the Lamb. I’ve gone on runs, walks, and ran errands.
I would then find myself come back in the evening and find myself incredibly focused in getting all the work I need done. I am writing this entire post after haven taken a 3 mile walk during the afternoon.
My routines every day have been to run each morning. But lately, my focus energy and my “clarity” has drastically dropped. There were days where I didn’t even have the will to run that morning.
In many ways, my energy levels throughout the day were in flux, and my daily routines weren’t providing enough of fuel. I usually run because that gave great clarity, but as of late, it isn’t giving as much as I’d hope. A mid-day run gives a temporary boost, but not as long as they use to.
So what’s going on here?
Well, I have no idea.
So I’ll go do an energy audit and really check my triggers and thought patterns throughout the day and see if my bullshit excuse of “the weather is unexpected” is making it up, or if my diet needs to be repaired.
I think its diet though. The most significant addition has been AG1.
Or it could be that I’m not writing and shitposting enough publicly.
What’s Occupying My Mind
TL;DR: I hold high skepticism and low weight on Crypto Bonuses.
Receiving Crypto Based Bonuses
It turns out, when you offer employees token payments on top of their standard fiat wages, whether as a bonus or as option plan, there is an intense amount of what I will call “shit” you need to contend with as a Company, and as an Employee.
What are the Top Issues as an Employee you should be aware of when being paid in Crypto?
They are all economic related!
Risk 1: You don’t have enough fiat cash to cover the tax bill triggered by a token payment to you (you can’t pay the IRS, or any other Tax Authority, in Crypto)
Risk 2: You are taxed on a cost basis (token value) that is higher than your realizable price, in a period of falling prices, and there’s nothing you can do about that.
Risk 3: The crypto asset is not liquid enough for you to realize the fiat value to cover any bills.
Risk 1: You don’t have enough fiat cash to cover the tax bill triggered by a token payment to you (you can’t pay the IRS, or any other Tax Authority, in Crypto)
Elaborating on this - when you are paid a bonus or a regular salary, you have tax withholdings to consider that are taken from the gross amount of your paycheck. These amounts are paid to the IRS (or whatever your tax authority are).
Crypto bonuses does not defer in anyway.
When you are paid in Crypto, the fair market value of it is reported on your pay stub, and you guessed it, tax withholdings are also calculated. Except the withholdings can’t be paid in crypto - they are paid by your base salary unless the company can enact a proper tax settlement (more on that next week).
Risk 2: You are taxed on a cost basis (token value) that is higher than your realizable price, in a period of falling prices, and there’s nothing you can do about that.
On July 1, you are paid a 1,000 Token Bonus with a value of $10 per token (essentially a $10,000 bonus).
On July 2, some idiot at FTX or whichever company crashes the market, immediately creating a ripple effect and reducing the value of your tokens by 50% ($5 per token). The price does not recover.
At the end of the year, or whichever your reporting period, you will be taxed at the $10 per token amount - $10,000, even though the realizable value to you is $5,000, or $5 per token. This is reported on your W2, unfortunately.
In a period of rising prices, you’d benefit. But in a period of falling price or price collapse, well I hope you have a cash reserve to pay it.
It is the nature of the game.
Risk 3: The crypto asset is not liquid enough market for you to sell and realize the fiat value to cover any bills.
Almost all the companies out there will issue Crypto bonuses in their own native token that they are the creator or purveyor of. Which means you aren’t being paid in stablecoins, you’ll probably be paid in a derivative or an asset that isn’t as popular - but the company is trying to make it popular.
What you have to consider is if you can even sell the tokens for any realizable value. It’s one thing to see the price of a token at lets say $10. Its another to even be able to sell enough of the tokens in such a way that 1) you can actually sell it, and 2) you (and everyone else selling because of the bonus) aren’t reducing the market value of the tokens.
A lot of these risks impact personal finance - and they are not decisions you should be taking lightly. Conjoined with any company stock options, being employed for a crypto company and being paid in a standard fiat salary, stock options, and token options, comes with a lot of liquidity-driven risks.
What are the Top Issues as an Employer you should be aware of when paying in Crypto?
Come back next week.
More shitposting plz
I've been using AG1 for about a year and a half now too!