Onchain > Online
Be Digitally Native
AB updates are for informational purposes only. Do not construe any of the following as investment, financial, or other advice. You make your own decisions.
Disclaimer: AB Research is a culmination of research & insights from the diverse capacity of the AB Team. Ultimately our focus & mission is financial freedom. This is a special edition. Whitetail owns Ethereum.
The tide has shifted. Crypto is no longer the boogieman. It is increasingly important to pay attention to this industry. Onchain is the new online. Blockchain is like the internet except we own stuff.
Being onchain requires interacting with the blockchain on a monthly basis for any reason at all. It means getting off centralized exchanges and downloading a wallet such as Coinbase Smart Wallet or Rabby.
Using centralized exchanges for crypto is campaign mode in video games. You can complete the mission (make money) but the most exciting part is multiplayer (onchain).
Being onchain is a powerful step towards being a sovereign individual. Onchain wallets give people a US dollar bank account anywhere in the world. If a local currency has high inflation this is literally life saving for people. It protects their purchasing power and freedom.
In the future, growing up with only a traditional bank account and not a digital bank account (smart wallet) will be a distinguisher between generations, “similar” to how kids don’t go into banks anymore but have Venmo.
At AB, a high % of our net worth is onchain. Many people in crypto are in a similar boat. How are we comfortable with this?
The truth is money in the bank is a social construct. It’s all stored on a computer that someone controls. It is digital like a blockchain. Whoever controls that computer can change it at will while no individual controls the blockchain. Read the stories about people being debanked. One of blockchains key value propositions is securing economic freedom in ways that were not possible prior. This comes in many forms: selling NFTs, buying BTC, using USDC to avoid processing fees, sending remittance or holding USD via stables.
Ethereum has properties of hardness that make it the most pristine collateral in the world. This has yet to be fully digested by most capital allocators. Ethereum is a yield baring, deflationary asset that gives exposure to emerging technologies and innovation. It is the NASDAQ on steroids.
AB decided to spend our careers in an industry where a 27 year old can and likely will have more experience than someone who is 50. This is a deliberate choice. It is a field where being digitally native is a significant advantage. It is the arena where people break rules, where we ask for forgiveness not permission. Where we believe we help this inevitable trend that is changing the world.
As Beckman describes us, Advantage Blockchain is a team of digital bandits in the wild west (onchain). Small tight knit teams will be increasingly common with the leverage offered by crypto + AI. Individuals with different but complementary skill sets aligned to a common vision/cause. There will be no manager class in these organizations. Crypto teaches most very quickly about personal responsibility.
What is there to do onchain?
I personally do most of my banking onchain at this point. If I need a loan, I can get it from AAVE on base in 30 seconds, then transfer it to coinbase and have it in my bank account by the next day. It is surprisingly efficient.
It is wise to use multiple DeFi protocols to hedge risk (equivalent of having multiple bank accounts). With any extra dollars, instead of sitting in a chase bank account earning nothing, I can put into Moonwell and earn 7% on USDC.
It is important to remember we’re in the first decade of decentralized finance and it is only going to improve and become more resilient. This will be the best financial system that 95%+ of the people in the world will ever access.
Polymarket for sports betting. With Polymarket, you only need to be right that the odds are mispriced to make money because it is a 24/7 liquid market, you can cash out the “ticket” at anytime. This is a great example of the increased capital efficiency provided by crypto.
Blockchain is at the intersection of culture, finance, artificial intelligence, math, cryptography, science. It is a hub for 0 to 1 thinking. There are countless reasons to get involved. Next time instead of sending a Venmo, send USDC onchain. Build good habits, you will be surprised.
Cheers,
Whitetail & Co
AB updates are for informational purposes only. Do not construe any of the following as investment, financial, or other advice. You make your own decisions.