The author expounds on an appraisal of hypothetical money, if one imagine's that he paid himself all labor costs to perform the work.
He spent several months working on a video game that didn't do well, and made zero dollars.
Did I lose $6,000 dollars on a hypothetical bitcoin I never paid for in August, when the value dropped last week?
No, I left the $10,000 dollars in my bank account, and I still have $10,000, and/or whatever real goods or services I purchased with said money.