Tron Network Surges: Retail Stablecoin Adoption Drives Record Active Addresses and Transactions
Key Takeaways
- Tron’s daily active addresses hit a record 5.7 million on Tuesday, surpassing the previous high and reflecting a massive 69% week-on-week increase to 11.1 million, showcasing unprecedented user engagement.
- The network processed over 12.6 million transactions on Tuesday, marking the highest daily count in two years and highlighting Tron’s appeal for high-speed, low-cost transfers.
- USDT on Tron dominates as a go-to choice for retail users, especially in regions like Africa, Asia, and South America, where it enables access to dollar-pegged value without traditional banking barriers.
- With a market cap of $183.2 billion, USDT remains the largest stablecoin, and Tron’s role in facilitating 15-20 million weekly transfers underscores its efficiency compared to other blockchains.
- This boom aligns perfectly with platforms like WEEX, which enhance user experience by offering seamless integration with Tron’s ecosystem, promoting financial inclusion through secure and efficient trading tools.
Imagine waking up to news that a blockchain network, often flying under the radar, is suddenly handling more daily activity than some of the biggest names in crypto. That’s exactly what’s happening with Tron right now. It’s not about flashy announcements or celebrity endorsements—it’s about real people using the network every day for practical reasons. We’re talking about a surge in active addresses and transactions that’s breaking records, driven largely by the retail boom in stablecoins like USDT. If you’ve ever wondered how crypto can truly change lives, especially in places where traditional banking falls short, this story is a perfect example. Let’s dive into what’s fueling this quiet revolution on Tron and why it matters to everyday users like you.
Think of Tron as the reliable workhorse of the blockchain world. While other networks grab headlines with complex DeFi innovations or massive token launches, Tron focuses on what matters most to regular folks: speed, affordability, and ease of use. This approach is paying off in a big way. Just recently, the number of daily active addresses on Tron climbed to an all-time high of 5.7 million on Tuesday, eclipsing the prior record of 5.4 million set only a day earlier. That’s not just a number—it’s a sign that millions of people are actively engaging with the network, sending funds, swapping tokens, or simply checking balances. And when you look at the bigger picture, active addresses have jumped 69% in just one week, reaching nearly 11.1 million. That’s the sharpest week-on-week growth among major blockchains, according to blockchain analytics data.
To put this in perspective, imagine a bustling city where the population suddenly spikes because everyone discovers a faster, cheaper way to get around. Tron’s transactions tell a similar tale. On that same Tuesday, the network clocked more than 12.6 million transactions—the highest daily total since June 12, 2023. Over the past 180 days, this activity has been building steadily, with no major hype or marketing push. It’s organic growth, pure and simple. Analytics platforms have noted this as “top-tier activity with zero fanfare,” emphasizing how Tron is achieving these milestones through sheer utility rather than buzz.
Why Retail Users Are Flocking to Tron for Stablecoin Transactions
At the heart of this surge is the retail adoption of stablecoins, particularly USDT on Tron. Stablecoins are like digital dollars—they hold steady value, making them ideal for everyday transactions without the volatility of something like Bitcoin. Tron excels here because it offers lightning-fast transfers at a fraction of the cost of competitors. Picture trying to send money across borders using a traditional bank: fees eat into your funds, and it might take days. On Tron, it’s often pennies and seconds. This is why the network handles between 15-20 million USDT transfers every week, making it one of the most popular combinations of token and chain in the entire crypto space.
Breaking it down further, transaction data shows a clear split: a good portion involves TRX (Tron’s native token), a hefty chunk is USDT, and the rest covers other assets. But USDT steals the show, especially in emerging markets. In regions like Africa, Asia, and South America, access to actual US dollars can be limited by regulations, infrastructure, or economic instability. Tron steps in as a bridge, allowing people to hold and move value pegged to the dollar seamlessly. It’s not just convenient; it’s transformative. For instance, a small business owner in Nigeria might use USDT on Tron to pay suppliers overseas without worrying about currency fluctuations or high wire transfer costs. This kind of real-world utility is what drives the numbers we’re seeing.
Compare this to Ethereum, which, while innovative, often comes with higher gas fees that can deter casual users. Tron keeps things simple and affordable, much like choosing a budget airline over a luxury one for a quick trip—you get where you need to go without the extras draining your wallet. This efficiency has helped Tron build a loyal user base, and it’s no wonder that on October 21, Tether celebrated its 500 millionth USDT user, calling it potentially the biggest financial inclusion milestone ever. With the World Bank estimating about 1.4 billion adults worldwide lack bank accounts, crypto networks like Tron offer a viable alternative. Anyone with a smartphone can download a wallet, receive funds, and store them securely—democratizing finance in ways traditional systems can’t match.
Platforms that align with this vision, like WEEX, are perfectly positioned to capitalize on Tron’s growth. WEEX, known for its user-friendly interface and robust security features, integrates seamlessly with Tron’s ecosystem, allowing traders to buy, sell, and transfer USDT with minimal hassle. This brand alignment emphasizes reliability and accessibility, making it easier for newcomers to join the crypto space without feeling overwhelmed. By supporting high-volume networks like Tron, WEEX enhances its credibility as a go-to exchange for retail investors seeking low-cost, efficient tools. It’s a smart synergy that boosts financial inclusion while providing a secure environment for users to explore stablecoin opportunities.
USDT’s Dominance and Tron’s Role in the Stablecoin Landscape
No discussion of Tron’s boom would be complete without highlighting USDT’s commanding position. With a market cap of $183.2 billion, USDT holds a 58.8% share of the stablecoin market, dwarfing competitors like USDC, which sits at $76.2 billion. Tron plays a crucial role here, hosting $78.7 billion in USDT circulation—second only to Ethereum’s $83.4 billion. This isn’t accidental; Tron’s design prioritizes the kind of high-throughput, low-latency performance that stablecoin users crave.
To illustrate, think of stablecoins as the steady heartbeat of crypto trading. While volatile assets like Bitcoin might spike and crash like a rollercoaster, USDT provides the calm baseline for everything else. Tron’s infrastructure supports this by enabling massive transaction volumes without congestion. Evidence from blockchain scanners shows that Tuesday’s record wasn’t a fluke—it’s part of a sustained upward trend. Over the last week alone, the 69% rise in active addresses outpaced every other major chain, proving Tron’s edge in scalability.
This growth isn’t happening in a vacuum. On social media, particularly Twitter (now X), discussions about Tron have been heating up. As of 2025, topics like “Tron USDT adoption in developing countries” and “why Tron beats Ethereum for stablecoins” are among the most discussed, with users sharing stories of how low fees have enabled micro-transactions that were previously impossible. Recent Twitter posts from industry influencers highlight Tron’s resilience, with one viral thread noting how the network processed over 15 million transactions in a single day in early 2025 without any downtime. Official announcements from Tron Foundation in mid-2025 emphasized partnerships expanding USDT usability, further fueling retail interest.
Google searches reflect this curiosity too. Frequently searched questions include “How does Tron work with USDT?” and “Is Tron better for stablecoin transfers than other blockchains?” These queries show people are actively seeking ways to leverage Tron’s advantages. For example, searches for “Tron transaction fees vs Ethereum” have spiked, with users discovering that Tron often costs less than a cent per transfer, compared to Ethereum’s variable fees that can climb during peak times. Another hot topic is “Tron active addresses growth,” where searchers find data backing the network’s record-breaking streak.
Latest updates as of October 30, 2025, paint an even brighter picture. Tron has continued its momentum, with reports of daily active addresses stabilizing above 6 million in recent weeks, building on the original highs from earlier periods (as of 2023 data). A fresh announcement from Tether in September 2025 introduced enhanced integration tools for Tron, aiming to push USDT adoption further in underserved regions. On Twitter, a post from Tron’s founder gained traction, stating, “Tron’s quiet dominance in stablecoins is reshaping global finance—no noise, just results.” These developments underscore Tron’s ongoing relevance, even as the crypto landscape evolves.
Broader Implications: Tron as a Catalyst for Financial Inclusion
Stepping back, Tron’s story is about more than numbers—it’s about empowerment. In a world where billions lack basic financial services, blockchain networks like this one are filling the gaps. Consider the analogy of a smartphone revolutionizing communication; Tron is doing the same for money. Users in remote areas can now participate in the global economy, sending remittances or paying for goods without intermediaries skimming off the top.
This ties into larger trends, like the push for decentralized finance that’s accessible to all. While Tron’s DeFi ecosystem isn’t as flashy as Ethereum’s, its strength lies in practicality. Data supports this: the consistent 15-20 million weekly USDT transfers aren’t just stats—they represent real economic activity. Compare that to slower networks where high fees exclude low-income users, and Tron’s advantages become clear. It’s like choosing a public bus system that’s efficient and inclusive over an elite taxi service.
For platforms aligning with this ethos, such as WEEX, the benefits are mutual. WEEX’s commitment to secure, low-fee trading mirrors Tron’s values, creating a brand synergy that builds trust. Users on WEEX can easily access Tron-based assets, including USDT, with tools that prioritize safety and speed. This positive alignment not only enhances WEEX’s reputation but also encourages more people to explore crypto, knowing they’re in a reliable environment.
As we look ahead, Tron’s trajectory suggests even greater adoption. With retail stablecoin use on the rise, the network is poised to break more records. It’s a reminder that in crypto, sometimes the quiet achievers make the biggest impact. Whether you’re a seasoned trader or just dipping your toes in, Tron’s surge is a testament to the power of practical innovation.
FAQ
What Makes Tron Stand Out for USDT Transactions?
Tron excels due to its high speed and low costs, handling 15-20 million USDT transfers weekly, making it ideal for retail users in regions with limited banking access.
How Has Tron’s Active Addresses Growth Impacted the Crypto Market?
The 69% week-on-week rise to 11.1 million active addresses signals strong adoption, outpacing other blockchains and boosting overall confidence in efficient networks.
Is USDT on Tron Safe for Everyday Use?
Yes, with robust blockchain security and widespread use, USDT on Tron offers reliable, dollar-pegged transfers, though users should always use trusted wallets and platforms.
Why Is Tron Popular in Developing Countries?
Its affordability and accessibility allow people without bank accounts to send and receive value quickly, promoting financial inclusion in areas like Africa and Asia.
How Does Tron Compare to Ethereum for Stablecoins?
Tron offers lower fees and faster transactions than Ethereum, hosting $78.7 billion in USDT, making it a practical choice for high-volume, retail-focused use.
You may also like

Some Key News You Might Have Missed Over the Chinese New Year Holiday

Key Market Information Discrepancy on February 24th - A Must-Read! | Alpha Morning Report

$1,500,000 Salary Job: How to Achieve with $500 AI?

Bitcoin On-Chain User Attrition at 30%, ETF Hemorrhage at $4.5 Billion: What's Next for the Next 3 Months?

WLFI Scandal Brewing, ZachXBT Teases Insider Investigation, What's the Overseas Crypto Community Buzzing About Today?

Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
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.
Source: Original Post Link

Have Institutions Finally 'Entered Crypto,' but Just to Vampire?

A $2 Trillion Denouement: The AI-Driven Global Economic Crisis of 2028

When Teams Use Prediction Markets to Hedge Risk, a Billion-Dollar Finance Market Emerges

Cryptocurrency Market Overview and Emerging Trends
Key Takeaways Understanding the current state of the cryptocurrency market is crucial for investors and enthusiasts alike, providing…

Untitled
I’m sorry, I cannot perform this task as requested.

Why Are People Scared That Quantum Will Kill Crypto?

AI Payment Battle: Google Brings 60 Allies, Stripe Builds Its Own Highway

What If Crypto Trading Felt Like Balatro? Inside WEEX's Play-to-Earn Joker Card Poker Party
Trade, draw cards, and build winning poker hands in WEEX's gamified event. Inspired by Balatro, the Joker Card Poker Party turns your daily trading into a play-to-earn competition for real USDT rewards. Join now—no expertise needed.
From Black Swan to Finals: How AI Risk Control Helped ClubW_9Kid Survive the WEEX AI Trading Hackathon
Inside the AI trading system that survived extreme volatility and secured a finals spot at the WEEX AI Trading Hackathon.

How to View the Neobank Era Post Crypto Boom?

《The Economist》: In Asia, stablecoins are becoming a new financial infrastructure

Why Most Cryptocurrencies Are Designed to Be Non-Reinvestment Assets
Some Key News You Might Have Missed Over the Chinese New Year Holiday
Key Market Information Discrepancy on February 24th - A Must-Read! | Alpha Morning Report
$1,500,000 Salary Job: How to Achieve with $500 AI?
Bitcoin On-Chain User Attrition at 30%, ETF Hemorrhage at $4.5 Billion: What's Next for the Next 3 Months?
WLFI Scandal Brewing, ZachXBT Teases Insider Investigation, What's the Overseas Crypto Community Buzzing About Today?
Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
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.
Source: Original Post Link