Everyone is focused on the BTC asset itself, but few pay attention to the underlying Bitcoin infrastructure (Bitcoin rails).
Let's delve deeper:
AI is doing two things at once:
Stifling marginal labor demand.
Forcing the government into structurally higher deficits and financial repression.
This combination drives up financial assets, becoming the ultimate hedge tool. If you hold assets, your wealth will not be diluted.
Meanwhile, tokenization is dragging trillions of dollars of idle assets into a 24/7 digital market:
Tokenized government bonds, credit, real estate
USDC/USDT becomes the global payment rail
AI agents programmatically transfer value
All of this requires trusted neutral settlement.
Public chains like Ethereum and Solana have been providing this settlement service for years. However, the fact is that the value of block space depends on the computational power backing it.
Bitcoin is a global supercomputer, supported by a hash power of 1100 exahashes per second.
The bottleneck is not more BTC, but rather more confirmed transactions in the world's most trusted ledger.
The supply of Bitcoin increases on a known schedule; however, its block space does not. 144 blocks per day, each 4MB.
While today's demand for Bitcoin block space may not be as high as other public chains, BTC is the only asset capable of absorbing monetary inflation.
Thus, Bitcoin block space will become the world's safest computational real estate.
This is the intersection of Fundstrat's ETH thesis and the reality of Bitcoin.
As AI agents, stablecoins, and tokenized assets converge on Bitcoin settlement (whether through direct settlement or via Bitcoin-backed L2), they are all competing for the same scarce resource: inclusion in the next block.
If AI turns the market into a 24/7 operating machine, then block space becomes the uptime budget of this machine.
Under the regime of 'AI plus fiscal expansion plus tokenization', these fees will become:
Rent for the most trusted settlement layer
Direct ownership of economic activities transferred to Bitcoin infrastructure
BTC is a store of value; block space is utility.
If you believe AI will shift from narrative to revenue, you imply a positive outlook for more value to be transferred more frequently on crypto rails.
In this world, the clearest and most scarce choke point is not another alternative L1, but Bitcoin block space.
A tribute to Muneeb (founder of Stacks) who understood this years ago.