‘Internet-First’ Era Rises as S&P Stagnates vs Magnificent Seven

- Blockchain and AI disrupting the traditional economy, paving the way for decentralized networks. - Magnificent Seven tech stocks outpacing the S&P 500, signaling post-2008 digital dominance. On September 21, 2025, Cointelegraph reported that venture capitalist Balaji Srinivasan declared the traditional economy is “sunsetting.” He argued that a tech-driven, internet-first future, built on blockchain technologies, artificial intelligence (AI), and online platforms, is taking its place. Srinivasan, a former Coinbase executive, highlighted a key divergence in financial growth. He pointed to the substantial rise of top tech stocks, the “Magnificent Seven,” compared to the stagnation of other S&P 500 companies since 2005. Srinivasan attributes this shift to a broad movement of transactions and communication online, a trend that accelerated after the 2008 financial crisis. He asserts this evolution naturally leads to internet-based economies and communities, which in turn pave the way for “network states.” In his view, these decentralized, digitally-organized communities offer an alternative to traditional nation-states. To function, they require internet-native currencies like cryptocurrencies for governance and operations. Regulatory actions reflect this economic transformation. U.S. lawmakers and government agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), are exploring initiatives to modernize the financial system. A key effort involves laying the groundwork for 24/7 capital markets, which aligns with the round-the-clock nature of cryptocurrency trading. The U.S. government is also leveraging blockchain technology to increase economic transparency. It has partnered with oracle providers like Pyth Network and Chainlink to publish essential economic data, such as GDP and other indicators, directly onto blockchain networks. This initiative uses blockchain’s inherent transparency to enhance public accountability and provide clearer insights into budgetary operations. Srinivasan’s sweeping vision suggests transformative possibilities, positioning decentralized network states as the next frontier in governance and innovation. While early signs of blockchain integration are promising, traditional systems face the challenge of adapting in time for a digitally-native future. As blockchain and AI reshape economies, the foundation for this “internet presidency” era appears to be unfolding.