In a weekend post on X, the former Coinbase executive described the “legacy economy” as fading, replaced by an online-first system dominated by technology platforms and digital networks. He pointed to the growing gap between the “Magnificent Seven” – Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla – and the rest of the S&P 500.
While most of America’s top companies have traded sideways for nearly two decades, these tech giants have soared, highlighting what Srinivasan sees as the structural shift toward internet-native growth.
According to him, the movement isn’t just about stock performance. Since the 2008 financial crisis, nearly all commerce and communication has migrated online. The next step, he argues, will be fully fledged internet economies, digital communities, and even “network states” – online-first societies powered by cryptocurrencies as their native form of money.
He compares the change to the Industrial Revolution, where agriculture gave way to manufacturing, only this time the shift is from physical economies to digital-first governance.
The idea of network states, first popularized in Srinivasan’s book, envisions distributed communities that rely on blockchain and AI rather than traditional state institutions. He believes these systems will eventually replace many functions of governments while offering borderless alternatives.
Signs of this transition are already visible in U.S. policy. Regulators including the SEC and CFTC have recently discussed moving toward 24/7 capital markets, a model that mirrors the nonstop nature of crypto trading. Meanwhile, government agencies have begun experimenting with publishing official economic data on-chain through providers like Chainlink and Pyth Network, framing it as a push for greater transparency.
For Srinivasan, these moves confirm a broader trend: legacy systems may try to adapt, but the future will be built around blockchain, AI, and internet-first financial infrastructure.
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