Balaji Srinivasan, an American entrepreneur and former Chief Technology Officer of Coinbase, points out that developed countries such as the United States have shifted their focus from traditional economies to internet economies driven by technology and digital platforms.
His remarks came after he shared them X post He says goodbye to the legacy economy and says it’s time to start embracing the internet economy.
Srinivasan also shared a chart highlighting the growing growth gap between The magnificent SevenParticularly in 2023 and 2024, the group of large tech companies that have far surpassed the strong performance of the S&P 500 over the past decade, and the rest of the S&P 500 with little change since 2005.
Srinivasan highlights the transition from the traditional economy to the internet sector
Srinivasan pointed out 2008 Financial crisissays that all transactions and communications have begun to take place online since the incident.
However, he says this is just the beginning of this journey. Based on his argument, we conclude that the next phase includes developing economies focused on the internet, communities, cities, and even governments, with the world currently focusing on the Internet.
Meanwhile, seven epic Apple, Microsoft, Amazon, Alphabet, Meta Platforms, Nvidia and Tesla continue to dominate as the leading tech giants driving this transformation.
Commenting on Srinivasan’s remarks, analysts pointed out that former Coinbase executives have popularized the idea of network state. From his point of view, these online communities eventually evolved to rival or replace traditional nation-states.
According to him, such entities rely on internet-based money, such as cryptocurrencies, to effectively function transformations similar to the industrial revolution when society moves from agriculture to manufacturing.
Despite the promising developments surrounding this important milestone, analysts have identified obstacles that hinder this success. Their analysis shows that currently operating financial systems and government agencies typically take longer to adopt new technologies and slower innovation.
Given the benefits of the Internet sector in the economy, US regulators and lawmakers have teamed up to update their current financial system to support and encourage the research, development and use of AI and blockchain technology. This has sparked hope for more innovation in the economy.
US regulators provide solutions to all products in the country’s market
The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) were released in September Joint Statement Signals a shift towards the 24/7 capital market. The change aims to connect the traditional financial system with the crypto sector.
According to regulators, a trading environment that is available 24/7 for various types of assets is essential to establishing chain finances.
They also pointed out that it is important to establish clear regulations for event contracts and permanent futures. This allows investors to speculate about the future of the asset’s price without expiration date.
However, the two institutions emphasize that by extending trading hours, the US market can better relate to the reality that the global economy is operating 24 hours a day. They further explained that some types of assets could adopt this change completely over others. So, every product has one solution.
Separately, the US government has worked with Oracle Providers Pyth Network ChainLink shares economic data on the blockchain to increase the public’s clarity and accountability regarding budgeting.
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