Balaji Srinivasan former Coinbase CTO, author of The Network State, and a prominent crypto advocate He wrote on X: I have never been more bullish on crypto.
Because the rules-based order is collapsing and the code-based order is rising. So the short term price doesn’t matter. As international law breaks down, we will need not just onchain currencies, but onchain companies. As the post-war order breaks down, we’ll similarly need the post-internet order. States will fail, and the network will take their place.
We need internet capitalism, we need internet democracy, and we need internet privacy. So we need cryptocurrency. This came in response to a post suggesting that smart people might flee crypto amid short-term volatility or exits from projects.
The statement has gained significant traction (thousands of likes, reposts, and views within hours) and is being covered in crypto media outlet like CoinDesk especially as Bitcoin has recently dipped below $70,000, sparking broader market panic among some traders.
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Balaji’s view frames the current dip as irrelevant noise compared to a larger macro shift: declining trust in traditional geopolitical/institutional systems (“rules-based order”) and the rise of decentralized, code-enforced alternatives (“code-based order”).
He ties this to the need for blockchain-based economies, privacy tools, and new forms of governance as states potentially weaken. This aligns with his long-standing themes around network states, crypto as a foundation for internet-native systems, and skepticism toward legacy institutions.
It’s a strongly optimistic long-term take amid short-term bearish sentiment in parts of the market. The network state is a concept popularized and largely originated by Balaji Srinivasan, former Coinbase CTO, investor, and author of the 2022 book The Network State: How To Start a New Country.
It’s a vision for the successor to the traditional nation-state in a digital, internet-connected world. In its simplest, one-sentence form (as Balaji often summarizes it): A network state is a highly aligned online community with a capacity for collective action that crowdfunds territory around the world and eventually gains diplomatic recognition from pre-existing states.
A more detailed version from his writings includes additional elements: A social network with moral innovation (a shared purpose, proposition, or “national consciousness”). A recognized founder or leader. An integrated cryptocurrency for economic coordination and sovereignty.
A consensual government limited by a social smart contract. The ability to crowdfund and acquire physical territory not necessarily contiguous—think distributed enclaves or an “archipelago”. It’s essentially a startup society that scales from an online community ? a digitally coordinated group with real economic power ? a physical presence ? something recognized as a sovereign entity.
Based on coercive citizenship you’re born into it or naturalize under monopoly rules. Governed by centralized institutions with monopoly on violence. Often inherited rather than chosen. Network states flip this: Start cloud-first (digital, opt-in, global recruitment like a startup or social network).
Voluntary and exit-oriented (you can leave/fork easily; “exit over voice”). Non-contiguous territory (scattered properties linked digitally, like remote company offices or Bitcoin nodes). Built on code (cryptography, smart contracts, on-chain governance) rather than just laws.
Recruit like startups via memes, ideology, crypto incentives rather than birthright. Prioritize decentralized consent (100% opt-in democracy vs. 51% majority rule). Balaji describes it poetically as: A country you can start from your computer. A DAO that materializes in patches of earth.
A nation built from the internet rather than disrupted by it. An archipelago of digitally-linked enclaves. Balaji outlines a reproducible, peaceful process (the “quickstart” in his book and site):Network Society — Build a highly aligned online community around a shared moral innovation or proposition (e.g., health-focused, crypto-native, environmentalist).
Network Union — Organize for collective action (coordination tools, crypto treasury, on-chain metrics). Network Archipelago — Crowdfund and acquire distributed physical properties worldwide (houses, buildings, land via crypto). Scale population/income/territory ? gain diplomatic recognition (negotiate with existing states, perhaps through economic leverage or treaties).
The idea draws from historical precedents like charter cities, special economic zones, seasteading, crypto projects, and even religious diasporas like the Catholic Church as a pre-digital analog with moral mission, global coordination, and land holdings). Balaji ties network states to the “code-based order” rising as the “rules-based order” (traditional geopolitics/international law) collapses.
Internet-native capitalism, democracy, and privacy. Alternatives to failing states via decentralized networks. It’s not about replacing every nation-state overnight but creating parallel, opt-in systems that outperform legacy ones in trust, efficiency, and resilience—especially as digital tools (blockchain, AI, remote coordination) make geography less relevant.