AI isn't just automating jobs - it's vaporizing the profit models of entire industries. According to Jordi Visser on Bankless, we are entering a 'SaaSpocalypse' where AI produces such an abundance of code and intelligence that software moats are evaporating. Companies like Salesforce and Adobe aren't just losing to competitors; they are losing to the terminal value of zero-cost software.
When everything digital becomes infinitely reproducible, investors flee to scarcity. Visser positions Bitcoin as the cleanest expression of this 'scarcity portfolio.' He expects the S&P 500 to remain flat for a decade as the real economy doubles, because legacy public companies are too slow to replace high-cost labor with AI agents.
"AI is destroying the moats of abundance-based software businesses, leading to a 'SaaSpocalypse' where companies like Salesforce and Adobe see profits eroded as AI creates super abundance, making their terminal value questionable."
- Jordi Visser, Bankless
The market's engine is stalling for a different reason. Paul Tudor Jones notes that for years, markets grew as companies retired 2% of their cap annually through buybacks. That engine is reversing as tech giants divert cash into massive AI capital expenditures. A coming wave of IPOs could hit 5% of total market cap, creating a cascade of selling as lockups expire.
This capital is flooding into physical infrastructure. On Forward Guidance, the analysis highlighted a massive industrial recalibration where capital investment in data centers trumps share buybacks. Tesla expects its CapEx to exceed $25 billion this year. Nvidia CEO Jensen Huang identified a specific bottleneck: it isn't chips, but plumbers and electricians to build cooling systems.
"We are moving toward a economy where capital investment in physical infrastructure trumps share buybacks."
- Forward Guidance
This shift makes the Federal Reserve's traditional monetary tools look increasingly peripheral. The argument on Forward Guidance is that inflation is now driven by structural forces - AI capex booms and persistent energy supply shocks - not money supply. The Fed's constant communication creates policy lags while the real economy is reshaped by plumbers and transformers.
Nathaniel Whittemore on The AI Daily Brief argues the ultimate economic shift is toward human connection. As AI makes commodities cheap, spending will pivot to the 'relational sector' - nursing, therapy, hospitality - where human presence is the product. The economy isn't collapsing. It is moving from factories to human attention, a transition history has seen before when agriculture's share of employment fell from 40% to 2%.
The question is what holds value in the interim. Visser's answer is scarcity: Bitcoin, copper, and energy. The Fed's next move may be less important than the price of diesel and the permit speed for a new power substation.
