Bitcoin: Life Raft for a K-Shaped Economy
October 5, 2026
In this Onramp Media episode of The Last Trade, Heritage Foundation economist Peter St. Onge argues that AI is a bubble still closer to 1997 than 2000, and that productivity gains shift jobs rather than destroy them. He frames bitcoin as insurance against a K-shaped economy. These are the guest's views, not investment advice from Onramp.
Peter St. Onge went all in on Yahoo in 1996, retired at 25, and lost most of it when the dot-com crash took MicroStrategy, one of his biggest holdings, down more than 90%. His read on AI comes from that seat. He says it is a bubble, but that demand for tokens looks close to unlimited, so he places AI around 1997, not 2000. He argues the AI doom narrative is astroturfed and that the jobs panic is 10,000 years old: in his view, productivity raises demand, and work shifts to trades, makers and services that pay more. The catch, he says, is the K-shaped economy, where money printing and a bloated administrative state lift the top and chain the bottom, so technology has to outrun the state. He closes on bitcoin as, in his words, the insurance and the life raft for when the system eventually breaks.
Chapters
00:00 - Why the System Favors the Top 00:39 - Peter St. Onge Joins Jackson 02:31 - Going All In on Yahoo in 1996 04:56 - The Dot-Com Crash and MicroStrategy's 92% Drop 06:15 - Flashpacking and the Early Bitcoiner Parallel 08:35 - Why AI Will Be Bigger Than the Internet 11:30 - What Happens When We Outsource Thinking to AI 15:50 - Is AI a Dot-Com Style Bubble? 22:09 - Why AI Is at 1997, Not 2000 24:27 - Who Is Behind the AI Doom Narrative 28:47 - Why AI Risk Is a Reason to Go Faster 32:39 - Which Jobs AI Is Actually Replacing 34:58 - Why Productivity Creates More Jobs 44:04 - Blue Collar, Makers and Services 48:54 - Why Dog Walking Will Pay Six Figures 51:51 - The K-Shaped Economy and the Administrative State 54:11 - Can Technology Outrun the Parasite? 55:39 - Bitcoin Is the Life Raft
Frequently Asked Questions
Why does Peter St. Onge say AI is at 1997, not 2000?
At 22:09, he argues that AI is a bubble but that demand for tokens looks close to unlimited, which in his view places it near 1997 in the dot-com cycle rather than the 2000 peak.
What does Peter St. Onge think AI will do to jobs?
From 32:39 and 34:58, he argues the jobs panic is old and that productivity raises demand, shifting work toward trades, makers and services that pay more.
What is the K-shaped economy discussed on The Last Trade?
At 51:51, he describes an economy where money printing and a bloated administrative state lift the top while chaining the bottom, so technology has to outrun the state.
Why does he call bitcoin a life raft?
At 55:39, he closes by describing bitcoin as insurance and a life raft for when, in his view, the system eventually breaks. This is the guest's opinion, not advice.
This episode is editorial and educational content. Onramp does not provide tax, legal, or investment advice. Bitcoin is volatile and may lose value. Past performance does not guarantee future results.