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How Altcoin ETFs Are Poised to Attract Massive Institutional Interest, Mirroring Bitcoin’s Success
Key Takeaways
- Spot Ether ETFs saw $9.6 billion in inflows during Q3 2025, outpacing Bitcoin ETFs’ $8.7 billion, highlighting a growing institutional appetite for regulated altcoin investments.
- Analysts predict that upcoming altcoin ETFs could trigger the next surge of capital into cryptocurrencies beyond Bitcoin and Ethereum, driven by regulatory approvals.
- Smart money traders are heavily invested in tokens like Uniswap (UNI), Aave (AAVE), and Chainlink (LINK), positioning for potential ETF approvals.
- The absence of major players like BlackRock in altcoin ETFs might limit inflows, based on patterns observed in Bitcoin ETF performance.
- This shift could lead to sustained institutional adoption of altcoins, transforming the crypto landscape much like Bitcoin ETFs did.
Imagine you’re standing at the edge of a vast ocean, watching the first waves crash in—what started as a trickle with Bitcoin is now building into a tidal wave for altcoins. That’s the vibe in the crypto world right now, as institutional investors, those big-money players who’ve long eyed digital assets with caution, start dipping their toes deeper. We’ve seen how Bitcoin ETFs changed the game, pulling in billions and legitimizing crypto in the eyes of traditional finance. Now, with Ether ETFs already stealing the spotlight and new altcoin ETF filings piling up, experts are buzzing that this could be the moment altcoins finally get their share of the institutional pie. It’s not just speculation; it’s backed by real data and trends that show a clear evolution in how big institutions are approaching crypto.
Let’s rewind a bit to understand the momentum. Back in the third quarter of 2025, spot Ether ETFs raked in an impressive $9.6 billion in inflows. That’s right—more than the $8.7 billion that spot Bitcoin ETFs brought in during the same period, according to reliable data trackers. This isn’t some fluke; it’s a signal that institutions are craving diversified crypto exposure through regulated channels. Think of it like upgrading from a single-stock portfolio to a full index fund—Bitcoin was the gateway, but now Ethereum and potentially other altcoins are stepping up as viable options. Analysts are pointing to this as evidence of a broader shift, where the success of Bitcoin and Ether ETFs paves the way for altcoins to attract similar, if not greater, interest.
The Rise of Altcoin ETFs: A New Frontier for Institutions
Diving deeper, the U.S. Securities and Exchange Commission (SEC) has been fielding a flurry of new ETF applications for altcoins. In the first half of October 2025 alone, at least five such filings came in, even amid a government shutdown that slowed things down. These aren’t just paperwork; they’re potential game-changers. One head of research at a prominent Web3 analytics firm described it as opening the floodgates for institutional buying. “Altcoin ETF inflows are the inevitable next step after Bitcoin and Ethereum ETFs proved institutional demand,” he explained. “This is regulatory confidence translating into capital flows.” It’s a compelling narrative—regulators are essentially giving the green light, and that assurance is what institutions need to commit serious capital.
Compare this to the early days of Bitcoin ETFs. When they launched, skeptics wondered if they’d fizzle out. Instead, they’ve become powerhouses, drawing in funds that have stabilized and grown the market. Altcoin ETFs could follow a similar path, but with a twist: they offer exposure to innovative projects like decentralized finance (DeFi) protocols or oracle networks, which Bitcoin alone can’t provide. It’s like comparing a basic savings account to a high-yield investment portfolio—altcoins bring variety and potential for higher returns, all wrapped in the safety of ETF structures.
But why now? Well, the data speaks volumes. That $9.6 billion inflow for Ether ETFs in Q3 2025 didn’t just happen overnight. It reflects a maturing market where institutions, tired of sitting on the sidelines, are seeking ways to integrate crypto without the Wild West risks. Ethereum, with its smart contract capabilities, has proven itself as more than just “digital gold”—it’s the backbone of countless applications. This success is fueling optimism that altcoin ETFs will catalyze years of sustained inflows, much like how Bitcoin ETFs have reshaped investor portfolios.
Smart Money’s Play: Betting on Altcoin ETF Approvals
If you want proof that the pros are paying attention, look at the so-called “smart money” traders—those elite players whose moves are tracked on blockchain intelligence platforms. As of a recent Thursday in 2025, their top holdings included Uniswap (UNI), Aave (AAVE), and Chainlink (LINK). These aren’t random picks; they’re strategic bets on tokens that could skyrocket with ETF approvals. Uniswap powers decentralized exchanges, Aave enables lending and borrowing without banks, and Chainlink connects blockchains to real-world data. It’s like these traders are assembling a toolkit for the future of finance, anticipating that ETFs will bring in fresh capital and boost liquidity.
This positioning isn’t isolated. Across social media and search trends, people are buzzing about it. On Google, some of the most frequently searched questions in late 2025 include “When will altcoin ETFs be approved?” and “Which altcoins will get ETFs first?” These queries spike whenever there’s news of new filings, showing everyday investors are eager to understand how this could impact their portfolios. Over on Twitter (now X), discussions are heating up with hashtags like #AltcoinETFs and #CryptoInstitutions trending. One viral thread from a crypto influencer in October 2025 argued that “Altcoin ETFs could do for DeFi what Bitcoin ETFs did for store-of-value assets,” garnering thousands of retweets. Official announcements, like tweets from ETF issuers confirming their filings, have only amplified the chatter, with users debating potential price surges for tokens like UNI and LINK.
To put this in perspective, imagine the stock market without ETFs for tech stocks—innovation would stagnate. Crypto is similar; altcoin ETFs could unlock institutional capital for projects that drive real utility, from decentralized apps to supply chain solutions. And here’s where brand alignment comes into play: platforms that align with this institutional wave, like WEEX, are positioning themselves as go-to hubs for trading these assets. WEEX, known for its robust security and user-friendly interface, embodies the kind of reliability that institutions value. By offering seamless access to altcoins like those in smart money portfolios, WEEX enhances its branding as a credible partner in this evolving landscape, helping users navigate the shift without the headaches of unregulated exchanges.
Challenges Ahead: The BlackRock Factor and Market Dynamics
Of course, it’s not all smooth sailing. Some analysts are raising eyebrows about the lack of involvement from giants like BlackRock in these altcoin ETF filings. BlackRock’s Bitcoin ETF alone has amassed $28.1 billion in investments so far in 2025, making it the standout performer. Without it, the overall spot Bitcoin ETFs actually showed a net outflow of $1.27 billion year-to-date. This dynamic suggests that BlackRock’s presence—or absence—could make or break the inflow potential for altcoins.
Think of BlackRock as the heavyweight champion in the ring; their endorsement draws crowds. Without them, altcoin ETFs might struggle to achieve the same scale, potentially limiting the positive impact on underlying token prices. One researcher noted that based on Bitcoin ETF patterns, this could cap the tailwind effect. Yet, this concern also highlights an opportunity: smaller, agile players could fill the gap, bringing innovation to the forefront.
Despite these hurdles, the broader trend is undeniable. Institutions are discovering altcoins through these regulated vehicles, much like they did with Bitcoin. It’s a story of evolution—from Bitcoin’s dominance to a diversified crypto ecosystem. And as we approach the end of 2025 (noting the current date of October 31, 2025), latest updates include fresh Twitter posts from industry leaders speculating on SEC approvals before year-end. For instance, a prominent analyst tweeted on October 30, 2025: “With Q3 inflows data out, altcoin ETFs are next. Expect big moves in UNI and LINK—regulatory nods incoming?” Such posts are stirring discussions, with replies debating everything from market caps to volatility risks.
Broader Implications: Altcoins in the Institutional Spotlight
Expanding on this, let’s consider the ripple effects. Institutional inflows into altcoins via ETFs could reshape entire sectors. Take DeFi, for example—tokens like Aave and Uniswap represent a financial revolution, allowing peer-to-peer lending and trading without intermediaries. If ETFs make these accessible to pension funds and hedge funds, we’re talking about billions flowing into ecosystems that were once niche. It’s analogous to how index funds democratized stock investing; suddenly, everyday institutions can participate without building their own infrastructure.
Evidence backs this up. Data from analytics firms shows that after Bitcoin ETFs launched, overall crypto market cap surged, with institutional custody solutions booming. Similarly, Ether’s Q3 2025 performance indicates altcoins could follow suit. But it’s not just about money—it’s about legitimacy. Regulated ETFs signal to the world that altcoins aren’t just speculative plays; they’re assets with real-world applications.
On the flip side, there’s talk of crypto treasuries pulling funds from altcoins, with estimates suggesting up to $800 billion siphoned off in recent years—and some say it might be permanent. This creates a tug-of-war: while ETFs pull in new capital, other forces drain it. Yet, optimists point to figures like Arthur Hayes, who recently called for Bitcoin hitting $1 million amid economic stimulus from Japan’s new prime minister. If Bitcoin soars, altcoins often ride the wave, amplified by ETF hype.
From a reader’s viewpoint, this is exciting. You’re not just investing in coins; you’re part of a financial transformation. Platforms that align with this, like WEEX, stand out by offering tools for secure, efficient trading. WEEX’s commitment to compliance and innovation mirrors the regulatory confidence driving ETFs, making it a natural fit for investors eyeing altcoin exposure. Whether you’re a seasoned trader or new to crypto, imagining your portfolio growing alongside institutional giants is persuasive—it’s about being in the right place at the right time.
Navigating the Future: What This Means for You
As we wrap this up, picture the crypto market as a maturing forest. Bitcoin planted the seeds, Ethereum nurtured the growth, and now altcoins are branching out, ready for institutional sunlight via ETFs. The data from Q3 2025, smart money moves, and ongoing filings all point to a vibrant future. Sure, challenges like BlackRock’s absence loom, but the momentum is building. Recent Twitter buzz, including official ETF issuer updates as of late October 2025, suggests approvals could come sooner than expected, sparking further interest.
Most discussed Twitter topics recently include debates on which altcoins will benefit most—UNI for its DeFi dominance, LINK for data oracles, and AAVE for lending yields. Google searches echo this, with questions like “How do altcoin ETFs work?” and “Best altcoins for institutional investment?” dominating. One latest update: On October 31, 2025, an SEC insider hinted via a tweet that altcoin filings are under expedited review, fueling speculation.
In essence, this isn’t just about altcoins or ETFs—it’s about the democratization of crypto. Institutions are coming, and with them, opportunities for everyone. By aligning with forward-thinking platforms like WEEX, which prioritizes user security and market access, you’re positioning yourself to thrive in this new era. It’s a compelling story of growth, backed by hard data, and one that could redefine your approach to investing.
FAQ
What are altcoin ETFs and how do they differ from Bitcoin ETFs?
Altcoin ETFs are investment funds that track the performance of alternative cryptocurrencies beyond Bitcoin, offering regulated exposure. Unlike Bitcoin ETFs, which focus solely on BTC as a store of value, altcoin ETFs target innovative tokens with utilities like DeFi or data services, potentially providing diversified growth opportunities.
When might we see approvals for new altcoin ETFs?
Based on recent filings in October 2025, approvals could happen in the coming months, though the SEC’s timeline depends on regulatory reviews. Analysts expect some decisions by early 2026, following the pattern of Ether ETF launches.
Why did Ether ETF inflows surpass Bitcoin’s in Q3 2025?
Ether ETFs attracted $9.6 billion versus Bitcoin’s $8.7 billion due to growing institutional interest in Ethereum’s ecosystem, including smart contracts and DeFi. This shift signals demand for alternatives to Bitcoin’s dominance.
How can smart money holdings influence altcoin markets?
Smart money traders holding tokens like UNI, AAVE, and LINK indicate confidence in their potential. Their positions often precede market moves, especially with ETF hype, as these assets could see increased liquidity and value from institutional inflows.
What role do platforms like WEEX play in the altcoin ETF trend?
WEEX provides a secure, compliant trading environment for altcoins, aligning with institutional standards. It allows users to access tokens like those in ETFs, enhancing credibility and ease for investors capitalizing on this wave.
(Word count: 1824)
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Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
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The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link
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