The technology works. The on-ramps don't.
Imagine you made 10x on a crypto trade. Now withdraw it.
You need to transfer from your wallet to an exchange. The exchange needs to be KYC-verified and connected to a KYC-verified bank account. The bank needs to be comfortable with crypto-related transactions. None of these entities can have failed, frozen your account, or changed their policies since you last checked.
If everything goes right on-chain, many things can still go wrong off-chain.
This is blockchain's fundamental flaw: the technology works. The on-ramps and off-ramps don't—yet.
Only two well-adopted methods exist for funding a blockchain account:
1. Centralized Exchanges (CEXs)
2. Third-Party Services (Moonpay, Flexa, etc.)
You could fund from another wallet—but that wallet had to be funded through one of the above. It's turtles all the way down.
Let's say you onboarded successfully. You have USDC in a non-custodial wallet. You ape into1 a leveraged DOGE position. Elon goes on SNL and announces SpaceX accepts it. You sell at the top. 10x gains.
Now what?
The withdrawal path:
Each step can fail. The exchange can freeze your account. The bank can reject crypto-related deposits. Policies can change between your deposit and withdrawal.
Your on-chain capital is largely inaccessible for real-world spending. Alternatives exist—collateralized loans, pseudonymous gift cards, peer-to-peer exchanges in crypto-friendly zones—but they're not realistic for most people.
If the US wanted to significantly restrict crypto, it could:
Every chokepoint is a potential control point. This is a significant problem for those who believe in blockchain's ethos—and there's no clear, scalable solution.
The technology might survive. An estimated 5-10% of blockchain users have technical backgrounds2, compared to 0.5% of the general population. The industry can adapt. But widespread adoption through current infrastructure? That's vulnerable.
The honest assessment:
DeFi probably isn't for you if:
In that case, the risks likely exceed the benefits.
DeFi might be necessary if:
Location determines value. The same tool that's a speculative toy in New York is a financial lifeline in Buenos Aires.
Blockchains are remarkable engineering. The political and financial infrastructure around them is not.
The technology is as strong as its weakest link. Right now, that's onboarding and offboarding. Until that changes—through regulatory evolution, better UX, or new infrastructure—the "first billion users" everyone pitches on slide 5 will remain a pitch deck fantasy.
The technology works. The on-ramps and off-ramps don't—yet.
The actual percentage may vary significantly by blockchain platform and geographic region.
The technology works. The on-ramps don't.
Imagine you made 10x on a crypto trade. Now withdraw it.
You need to transfer from your wallet to an exchange. The exchange needs to be KYC-verified and connected to a KYC-verified bank account. The bank needs to be comfortable with crypto-related transactions. None of these entities can have failed, frozen your account, or changed their policies since you last checked.
If everything goes right on-chain, many things can still go wrong off-chain.
This is blockchain's fundamental flaw: the technology works. The on-ramps and off-ramps don't—yet.
Only two well-adopted methods exist for funding a blockchain account:
1. Centralized Exchanges (CEXs)
2. Third-Party Services (Moonpay, Flexa, etc.)
You could fund from another wallet—but that wallet had to be funded through one of the above. It's turtles all the way down.
Let's say you onboarded successfully. You have USDC in a non-custodial wallet. You ape into1 a leveraged DOGE position. Elon goes on SNL and announces SpaceX accepts it. You sell at the top. 10x gains.
Now what?
The withdrawal path:
Each step can fail. The exchange can freeze your account. The bank can reject crypto-related deposits. Policies can change between your deposit and withdrawal.
Your on-chain capital is largely inaccessible for real-world spending. Alternatives exist—collateralized loans, pseudonymous gift cards, peer-to-peer exchanges in crypto-friendly zones—but they're not realistic for most people.
If the US wanted to significantly restrict crypto, it could:
Every chokepoint is a potential control point. This is a significant problem for those who believe in blockchain's ethos—and there's no clear, scalable solution.
The technology might survive. An estimated 5-10% of blockchain users have technical backgrounds2, compared to 0.5% of the general population. The industry can adapt. But widespread adoption through current infrastructure? That's vulnerable.
The honest assessment:
DeFi probably isn't for you if:
In that case, the risks likely exceed the benefits.
DeFi might be necessary if:
Location determines value. The same tool that's a speculative toy in New York is a financial lifeline in Buenos Aires.
Blockchains are remarkable engineering. The political and financial infrastructure around them is not.
The technology is as strong as its weakest link. Right now, that's onboarding and offboarding. Until that changes—through regulatory evolution, better UX, or new infrastructure—the "first billion users" everyone pitches on slide 5 will remain a pitch deck fantasy.
The technology works. The on-ramps and off-ramps don't—yet.
The actual percentage may vary significantly by blockchain platform and geographic region.