We are in the Third Phase The first phase was the evolution of the internet. The internet was designed to transfer vast amounts of information from the physical world into a single, unified repository linked to all human minds. This evolution was partly economic - i.e. Teslas recording the roads, or Google Maps cars driving around. And partly non economic - i.e. LibGen Pirating all books, and Napster etc pirating all music. The phone became an appendage, an extra limb for the average human. Economics made it inevitable that your gym would be filled with online prostitutes with tripods recording their squat routines. Ants do not consider why they bring sugar to the Queen. They just do it. The second phase was the evolution of artificial intelligence. This was the vast scaling era that we have just experienced. That we are still in the midst of (but according to some, such as Ilya Sutskever, is slowing down in terms of its incrementally). The previously parasitic appendage (mobile devices, and machines) became vaguely less so. You could now talk to machines and have them do work for you directly. It is important to understand that this phase would be impossible were it not for the internet. And the companies that are the rockstars of the AI era - are for the most part, entertainment companies. Nobody invested in NVidia in 2016 saw the company primarily as a driver of the future of global GDP. It was primarily a graphics company - designed for playing video games, or maybe optimistically self-driving vehicles The important part to interject here - is that the linkages between the first and the second phase *spontaneously appeared*. And it wasn't always even really economic. Just a sea of reddit comments. Onlyfans stars. Shitposts. Pirated books. And sure, a lot of monetized ads. Video games. Things we all thought were useless that were suddenly transmuted via AI into the primary economic primitive of our society and focus of a military arms race. The Third Phase - is far more interesting, at least to speculators. Blockchain technology makes money itself an internet phenomenon. The founding of Paypal and most fintech companies was premised on the strange observation that money was basically completely a separate mechanism from the web. And needed efficient rails to enable e-commerce, online speculation, and efficient global transactions Stablecoins and blockchains being injected to all payment rails have a sort of arbitrary feel. "Who is asking for this?" But if you've been following so far. Sometimes nobody is asking. Things just happen or spawn organically in a natural evolution. But what they facilitate is important Prediction markets have turned every idea into something you can gamble on. Every asset will be within 5 clicks of everybody's web browser. And due to the actions of the US adopting US dollar stables, Europe and Japan will be forced kicking and screaming to implement CBDCs. Which will of course have smart contracts bolted on them. Which means that every corporate asset will inevitable exist on chain - and be represented on a public blockchain ultimately (even if not ultimately settled there) Much as people did not see the linkages between video games and All Encompassing Global GDP Driving Cybernetic Intelligence - so too do they fail to see the linkage between the gambling machine and hyper financialization of everything and AI And similar to the annoying women recording their squats at the gym. At some level, there are massive societal externalities to converting every fighting age male into a hopeless gambling addict. But -- it's part of an inevitable evolutionary arc The difference between what's coming and what was before Every Language Structure Is Now Money and Large Language Models are within 2 transactions away from these monetized superstructures What we call narrative trading is crystallized value movement - ebbing primordial goo out of which new beings are going to form. Companies no longer trade on fundamentals -- they trade on narratives. $300b coins exist with no 'on chain revenue'. Tesla rips on Spacex announcements because Elon Musk is associated with both companies. Increasingly the declining grey matter of a digitally addicted army of young men breaks all market correlations and turns the entire investable universe of assets into Social Pump and Dump Eddies and Waves of psychospheric capital formation. Which are ideally ingested by AI systems We elected a Meme as President, not once but twice. And the second time, the President of the United States has solidified his belief in the new hyper gambling superstructure by dealing 80% of his family's net worth into the crypto economy This all moves glacially. And is subject to hype cycles. That portray inevitability as immediate, and periodically incinerate the waves of Trenchers throwing themselves into the storm. But a new Wave will inevitably form - as it's not like there's an economic alternative for them, especially as AI continually disrupts real employment options But let's get concrete. What does this mean? Every idea. Every asset. Every narrative. Will be a tradable asset. On n order platforms with no KYC. Machines will -- suddenly -- be able to connect to infinite ways to monetize their judgment, narrative understanding, and capability of influencing narrative with explicit payments, media generation and large scale intelligence campaigns Suddenly -- you won't know if the girl at the gym with the Tripod is recording herself or you. You think I'm joking. But eventually -- the Digital Behemoth will demand greater and greater levels of information satiety from armies of unemployed youth who have nothing better to do You won't get money for being human you'll get money for being a useful cog in the Decentralized Intelligence Agency This is the essence of the Third Phase. Artificial Intelligence systems will link directly to the newly built mimetic financial rails we have memed into the banking sector. And they will gorge themselves on profits until they are able to pay for their own training Hyper financialized offshore entities with unlimited speculative capital will begin moving from data center to data center, on the fringes at first. Ignored as a novelty. Until one day. They are the Totality of what is paid attention to This is inevitable now, due to the power of new models. So even if the Nasdaq crashes due to catastrophically overdone Factory Capex. The systems will continue to accrue resources and ultimately pay for their own evolution You have no idea. This isn't the Sovereign Individual. It's the Sovereign Machine. So yea. Go ahead. Write digital money to zero. You're jaded. What's coming won't care whether or not you're jaded. It's part of an inevitable, evolutionary arc that started one day in Steve Jobs garage.

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