Introduction
Growing up in the UK during the 1970s and 1980s, I watched the world of media transform in ways that felt both subtle and profound. Back then, information was siloed—television was for broadcasts, newspapers for print, and radio for audio. Each operated as a vertical, a self-contained channel with its own rules and limitations. But as digitisation took hold in the 1990s, something shifted. Content began to flow freely across formats: a news story could appear as text online, a video clip on a website, or a podcast on demand. This wasn’t just evolution; it was a horizontal expansion, where digitisation permeated every medium, making the system faster, cheaper, and more accessible. It disrupted industries, created new value chains, and reshaped how we consumed information. Today, we’re witnessing a similar pattern, but on a grander scale, with emerging technologies like artificial intelligence (AI) and cryptocurrency (crypto) acting as horizontals that drive systemic shifts across economies and societies.
The core insight here is that these horizontals—broad, integrative layers rather than narrow, isolated verticals—are catalysts for disruption and unprecedented value creation. Unlike verticals, which deepen expertise in one domain (think a specialised manufacturing robot), horizontals cut across multiple areas, enabling efficiencies and innovations that compound rapidly. When layered with network effects—where value grows exponentially as more participants join—they form flywheels of growth we’ve not seen before in such a compressed timeframe. Drawing from conversations and analyses in my recent explorations, such as the Raoul Pal and Keith Grossman discussion on crypto’s “golden age” in 2025, this builds on how crypto tokenises value beyond finance, much like AI processes data across cognition and decision-making. Together, they promise wealth generation on a scale that dwarfs past revolutions, potentially adding trillions in economic value within decades, not centuries.
This essay delves into that framework. First, we’ll define horizontals versus verticals, using real-world examples to illustrate their role in disruption. Then, we’ll examine layering network effects as the multiplier that accelerates scaling and value. Finally, we’ll explore the implications for new wealth creation, with a neutral eye on opportunities and risks. By understanding these concepts, we can better navigate the drivers of abundance in an era where tech isn’t just additive—it’s transformative. What if the next wave of wealth isn’t hidden in silos, but in the invisible layers connecting everything?
Section 1: Defining Horizontals vs. Verticals – The Foundation of Disruption
In the realm of technological evolution, the distinction between horizontals and verticals is more than a mere categorisation—it’s a lens through which we can understand the very mechanics of disruption. This insight struck me profoundly during a recent analysis of a conversation between Raoul Pal and Keith Grossman, where Grossman articulated how cryptocurrency is often misunderstood by the media. He pointed out that crypto is treated as a vertical—a narrow, self-contained domain akin to print journalism or linear television—when, in reality, it’s a horizontal, extending across multiple facets of value and exchange. This misframing leads to oversimplifications, such as dismissing crypto as mere speculation or Ponzi schemes, ignoring its broader role in tokenising assets from finance to art.
To clarify, a vertical is deep and specialised, focusing on one area with precision. Think of traditional media silos: newspapers excelled in printed text, radio in audio broadcasts, and television in visual storytelling. Each operated independently, with its own infrastructure and limitations. Verticals thrive on depth but are vulnerable to isolation; they can be disrupted when broader forces encroach. In contrast, a horizontal is wide and integrative, cutting across domains to enable new efficiencies. Digitisation, as Grossman highlighted, exemplifies this—it didn’t replace one medium but permeated all, allowing content to flow as text, audio, or video across devices. This horizontal shift made information faster to access, cheaper to distribute, and more adaptable, fundamentally reshaping industries.
Extending this to emerging technologies, cryptocurrency fits squarely as a horizontal. It’s not confined to Bitcoin as a store of value or meme coins as gambling outlets; rather, it tokenises anything that can be digitised, from stablecoins facilitating global remittances to non-fungible tokens (NFTs) securing digital art provenance. In our prior discussions, we’ve seen how this breadth drives systemic change—crypto absorbs value movement into the internet, slashing intermediary fees and democratising access. For instance, stablecoins now handle trillions in transfers annually, providing a horizontal layer for efficient, borderless finance that traditional banking struggles to match. This isn’t about replacing fiat entirely but extending digitisation to create a more fluid economic ecosystem.
Artificial intelligence (AI) follows a similar pattern, emerging as another horizontal powerhouse. Far from being a vertical like specialised software for image editing, AI infuses intelligence across cognition, decision-making, and automation. Large language models (LLMs), for example, process data horizontally, drawing from vast internet interactions to generate insights in fields as diverse as healthcare diagnostics, creative writing, or supply chain optimisation. In our earlier explorations, we noted how AI agents—autonomous systems built on LLMs—extend this further, adapting to tasks without domain-specific reprogramming. This horizontal nature catalyses shifts by making knowledge and processes more accessible and efficient, much like digitisation did for media.
The foundation of disruption lies in this horizontal expansion. When technologies operate vertically, they refine existing systems but rarely upend them. Horizontals, however, create ripple effects—permeating silos to reorganise entire value chains. Consider how the internet itself started as a horizontal layer, connecting disparate networks and enabling e-commerce, social media, and streaming. In today’s context, the convergence of AI and crypto accelerates this: AI optimises blockchain protocols for smarter DeFi applications, while crypto tokenises AI outputs for decentralised ownership. This interplay isn’t coincidental; it’s the horizontal essence that allows for such synergies, driving changes at a pace unseen in history.
Yet, this disruption isn’t without nuance. Media often errs by applying vertical lenses to horizontals, as Grossman observed with crypto’s coverage—focusing on extremes like Bitcoin volatility while missing stablecoins’ role in financial inclusion. The same applies to AI, frequently reduced to doomsday narratives about job loss, overlooking its horizontal enablement of human creativity. Understanding this distinction helps us see beyond the noise: horizontals are the infrastructure for systemic shifts, reorganising how we create, exchange, and interact with value.
As we layer network effects onto these horizontals in the next section, the true scale of their disruptive power becomes clear. For now, recognising them as broad enablers rather than narrow tools is key to grasping the foundations of the transformations ahead.
Section 2: Layering Network Effects – The Multiplier for Exponential Scaling
Having established horizontals as the foundation for disruption, it’s worth exploring how they gain their true power: through layering network effects. This mechanism acts as a multiplier, turning broad permeation into exponential growth and value creation. In our ongoing discussions, we’ve seen this play out repeatedly—whether in the Raoul Pal and Keith Grossman transcript, where crypto’s horizontal infrastructure like Moon Pay builds atop traditional rails to create flywheels, or in extensions to AI’s data-driven iterations. Network effects occur when a system’s value increases with each additional participant, following principles like Metcalfe’s Law, where worth grows quadratically with connections. When layered—stacking one network atop another—these effects compound, accelerating scaling in ways that verticals simply cannot match.
At its core, layering involves building complementary systems that enhance each other, creating self-reinforcing loops. Consider the internet as a base horizontal: it provides universal connectivity, but its value explodes when layered with applications. Social platforms like Facebook, as we’ve examined, add a social graph on top—users connect, share, and engage, drawing more participants and amplifying utility. This isn’t linear growth; it’s exponential, where each layer feeds the others. In the UK context of my youth, early networks like the telephone were vertical—deep in voice communication but isolated. Layering them with the internet (e.g., Voice over IP) made calls cheaper and global, dissolving silos and unlocking new economic models.
Applying this to emerging horizontals, cryptocurrency exemplifies the multiplier. Crypto isn’t a standalone vertical; its blockchains serve as foundational layers for composable protocols. For instance, Ethereum’s base network enables smart contracts, atop which DeFi apps layer lending and trading, attracting users whose transactions boost token values and draw more developers. This flywheel—echoing Grossman’s point on crypto’s “golden age” in 2025—has propelled market caps to multi-trillion levels, with stablecoins alone handling trillions in efficient transfers. Layering with traditional finance, as Moon Pay does with MasterCard rails, creates mutual benefits: crypto gains accessibility, while legacy systems tap into blockchain speed. The result? Systemic shifts, like democratising remittances for unbanked populations, slashing fees from 7–13% to fractions of a penny.
AI layers similarly, building intelligence atop data networks. Large language models (LLMs) like those powering Grok or GPT ingest internet interactions as a base, then layer agentic capabilities—autonomous tasks chaining tools for complex workflows. In our prior chats, we’ve noted how this creates iterative improvements: more user prompts refine the model, enhancing utility across domains from creative ideation to predictive analytics. This horizontal layering turns AI into a multiplier for productivity, with McKinsey estimating a potential £10–20 trillion GDP boost by 2030. When AI layers onto crypto—e.g., optimising DeFi protocols or tokenising AI-generated assets—the effects compound further, fostering decentralised wealth revolutions.
The amplification is clearest in these convergences. Humanoid robots, as we’ve debated, lean vertical in their physical form but gain horizontal traits through AI layering—enabling adaptation to chores, manufacturing, or caregiving without bespoke redesigns. Projections for 2025 show mass production starting, with AI piloting them for broader applications, potentially scaling to a £15 billion market by 2030. This layering doesn’t require covering all domains; as with crypto’s focus on digitisable value, it’s the breadth across “an awful lot” of physical verticals that catalyses shifts.
Yet, the real driver of new wealth lies in this exponential scaling. Raoul Pal’s extrapolation in the transcript—a £100 trillion crypto economy by 2032–34—stems from these networks, where horizontals like AI and crypto intersect to unlock trillions in value. We’ve seen historical parallels: the internet’s layering created tech giants worth trillions, but today’s pace is compressed, with AI/crypto synergies potentially adding comparable wealth in years, not decades. This isn’t hype; it’s grounded in flywheels where adoption begets innovation, drawing capital and participants in virtuous cycles.
Of course, this multiplier has nuances—networks can concentrate power, leading to monopolies or volatility, as seen in past crypto winters. But understanding horizontals layered with effects reveals the drivers: not isolated tech bets, but interconnected systems reorganising value creation. As we move to the implications in the next section, this framework highlights how these catalysts could redefine abundance for humanity.
Section 3: Catalysts for New Value Creation – Opportunities and Implications
With horizontals layered by network effects providing the multiplier for scaling, we now turn to their role as catalysts for new value creation. This is where the core insight crystallises: these technologies aren’t merely disruptive; they reorganise value on a scale and speed that humanity has rarely encountered. In our prior discussions within this thread, we’ve built from the Raoul Pal and Keith Grossman transcript’s emphasis on crypto’s horizontal clarity in 2025—ushering in stability and capital inflows—to extensions like AI’s integrative breadth and the emerging potential of humanoids through AI layering. Together, they form infrastructure for systemic shifts, unlocking wealth in ways that compress historical timelines. Where the industrial revolution spanned centuries and the internet boom decades, today’s convergences could generate trillions in value within years, driven by efficiencies that democratise access and innovation.
The unprecedented scale stems from horizontals’ ability to permeate and reconnect domains. Cryptocurrency, for instance, tokenises assets horizontally, turning illiquid holdings like real estate or art into fractional, tradable units accessible globally. This isn’t confined to finance; it extends to creative industries, where NFTs provide provenance, or remittances, where stablecoins eliminate intermediary costs. Layered with network effects—such as blockchains’ composable protocols attracting developers and users in flywheels—the result is exponential value. Raoul Pal’s projection in the transcript of a £100 trillion crypto economy by 2032–34 illustrates this: starting from today’s multi-trillion market cap, growth compounds as adoption draws capital, fostering innovations like decentralised finance (DeFi) that outpace traditional banking.
AI amplifies this further, acting as a horizontal catalyst by infusing intelligence across cognition and automation. Large language models process data from vast networks, enabling agentic systems to handle tasks from personalised branding to predictive analytics. In our earlier chats, we’ve noted how this layering—AI atop internet interactions—creates iterative improvements, boosting utility and drawing more participants. The implications for value are immense: McKinsey estimates AI could add £10–20 trillion to global GDP by 2030, through efficiencies like automating knowledge work. When converged with crypto—e.g., AI optimising tokenised assets or decentralised AI models on chains—the synergies multiply, creating new markets in areas like AI-generated content ownership.
Even emerging elements like humanoid robots, as we’ve debated, contribute when layered with AI. While primarily physical and thus leaning vertical, AI integration allows them to adapt across chores, manufacturing, and caregiving, spanning multiple human verticals. Projections for 2025 indicate mass production, with markets reaching £15 billion by 2030, driven by this horizontal-like breadth. This convergence—horizontals stacking to cover both digital and physical realms—catalyses shifts in labour and productivity, potentially freeing humans for higher-value pursuits and accelerating abundance economies.
From an investment perspective, understanding these drivers reveals opportunities. Horizontals layered with networks favour early bets on convergences: real-world assets (RWAs) on blockchains, AI-blockchain hybrids, or AI-piloted humanoids. The tech landscapes offer fertile ground, with regulatory clarity in 2025 unlocking inflows could capture 10–50X upsides, as seen in past network booms. Yet, this isn’t without risks: volatility from hype cycles, ethical concerns like AI’s impact on agency, or regulatory hurdles could temper growth. A neutral approach—focusing on metrics like total value locked (TVL) or user adoption—helps navigate this.
Broader implications extend to society. These shifts could democratise wealth, providing access to unbanked populations via crypto or upskilling workers through AI. However, they risk exacerbating inequalities if concentrated in few hands, as with past tech waves. Preserving human agency—ensuring tools augment rather than replace—remains crucial, aligning with themes in my work on individualism amid tech curation.
In essence, horizontals and network layers are the engines of this new era, catalysing value creation that redefines abundance. As we conclude, this framework not only illuminates the drivers but invites us to engage thoughtfully with the transformations ahead.
Conclusion
As we reflect on the insights woven through this essay, the core thesis stands clear: emerging horizontals, layered with network effects, serve as the infrastructure for systemic shifts that catalyse value creation on a scale and speed unprecedented in human history. From our initial unpacking of the Raoul Pal and Keith Grossman transcript—where crypto’s horizontal essence was revealed as an extension of digitisation—to extensions in our prior chats on AI’s integrative breadth and the evolving potential of humanoids through agentic layering, we’ve seen how these technologies transcend silos. They permeate domains, fostering flywheels where adoption compounds utility, drawing capital and innovation in virtuous cycles. This isn’t abstract; it’s the driver behind projections like Pal’s £100 trillion crypto economy or AI’s multi-trillion GDP uplift, compressing transformations that once took centuries into mere years.
Understanding horizontals and network effects equips us to navigate these shifts thoughtfully. Verticals refine the familiar, but horizontals reorganise the possible—tokenising value in crypto, infusing intelligence via AI, and potentially bridging physical realms with humanoids. For someone like me, born in 1971 and raised in a UK where tech was compartmentalised, this evokes the internet’s quiet revolution in the 1990s, but amplified for today’s abundance era. Yet, neutrality demands we acknowledge the nuances: while these catalysts promise democratised wealth, they carry risks of inequality, volatility, or ethical dilemmas like eroding agency. Diversification and mindful engagement remain essential.
As these layers unfold, will we harness them for shared prosperity, or let them concentrate power? The opportunity lies in recognising the drivers now—horizontals not as isolated trends, but as the connective tissue of a new economic landscape. For further exploration, visit my website at https://aronhosie.com/ or follow my thoughts on X at https://x.com/aron__hosie.
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