Raoul Pal posits that Artificial General Intelligence (AGI) represents the replacement of the 'Apex Intelligence.' Consequently, it will be the last technology of scale that humans invent, as all future innovation will be driven by AI itself, marking a fundamental turning point for humanity.
The true addressable market for crypto is not the 8.5 billion humans, but trillions of AI agents needing rails for microtransactions. This 'agents are coming' narrative implies a demand for crypto that is orders of magnitude larger than the much-hyped 'institutions are coming' thesis.
Current geopolitical strategies are aimed at securing cheap, abundant energy. This is not for traditional consumption but to fuel the immense power demands of the AI arms race between the US and China. Lowering energy costs is the primary lever to accelerate intelligence creation and gain a competitive edge.
Traditional recessions are obsolete because policymakers cannot allow the collapse of asset prices which serve as collateral in a highly indebted world. They will preemptively inject liquidity to prop up markets, effectively creating a 'put option' on the system paid for by steady, long-term currency debasement.
Society is unprepared for the imminent combination of AGI 'brains' with physically superior humanoid robots. This fusion creates a new form of existence that is stronger, faster, and more adaptable than humans. Pal argues this isn't just an advanced tool; it's the emergence of a new species.
AI agents will evolve beyond simple transactions to become sophisticated DeFi participants. By accumulating assets from their economic activities, they will need to run treasuries, autonomously using DeFi rails for asset allocation, yield farming, and risk management, effectively operating as decentralized, automated hedge funds.
The competition for AI supremacy is a two-country race between the US and China, with all other nations playing peripheral roles. This singular dynamic is so powerful that it will consume global capital and force all other geopolitical issues to align around it, defining the next era of international relations.
The trillions needed for the AI revolution exceed government capacity. The next economic phase will shift from central bank quantitative easing to unleashing commercial bank balance sheets. Regulatory changes, like adjusting the SLR, will enable banks to provide the necessary leverage, echoing the Greenspan-era 90s boom.
Even when surpassed by AGI, humans remain vital because of our unique 'messy' intelligence driven by emotions and unpredictable feelings (qualia). This provides a non-linear, creative input that purely logical machine intelligence cannot replicate, making us a necessary component of a healthy intelligence ecosystem.