Over the past hundred years, almost all economic growth models have assumed a premise: the next generation will be larger than this one.
More population means a more abundant labor force, a larger consumer market, and more predictable long-term returns.
But this premise is failing worldwide.
China, Japan, South Korea, Europe, and even the United States—declining birth rates are shifting from “statistics” to a structural reality.
And when “people” are no longer the most abundant, cheapest, and most replicable production factor, the entire narrative of technology and institutions will be forced to be rewritten.
The emergence of Web3 and AI is not a coincidental wave of technology but an inevitable response to the era of population deflation.
I. Population Discontinuity: An Underestimated Systemic Risk
When discussing population decline, many discussions stop at “labor shortages.”
But if you only see it as a “workforce issue,” you will severely underestimate its destructive power.
What population deflation truly erodes are three underlying structural layers.
Labor Force: From a cyclical issue to an irreversible structural scarcity
China’s Birth Population Discontinuity (2010–2023)
Visually, what you see is not a “slide,” but a clear cliff-like plunge.
Taking China as an example:
2016: approximately 17.86 million newborns
2023: approximately 9 million newborns
2025: expected to fall below 8 million
In 7 years, it has been halved.
What does this mean?
People born in 2023 will enter the labor market around 2045: not “fewer,” but “half as many.”
This is not cyclical fluctuation but a structural collapse of the population.
More critically, this trend has been long predicted: according to the UN’s “World Population Prospects 2022,” China’s working-age population (15–64) will decrease by about 170 million between 2020 and 2050.
In the past, business systems assumed: “People can always be recruited; it’s just a matter of price.”
But in an era of population deflation, the problem has changed.
Delaying retirement, introducing immigration, and fertility subsidies are slow variables.
And business systems cannot wait twenty years.
This is precisely where all technological narratives begin to deform.
Attention and creator supply are shrinking in tandem: the hidden Achilles’ heel of Web2
The decline in young populations brings not only a decrease in labor but also a more covert and deadly problem: who produces content, and who consumes it?
Decrease in content creators
Slower spread of new culture and narratives
Platform traffic growth models become invalid
The “user growth → traffic → advertising → revenue share” model Web2 relies on is fundamentally built on population expansion.
When new users no longer appear, platforms become competitive, rules change frequently, and trust between creators and platforms erodes.
This is the most difficult structural flaw for Web2 to repair in a population deflation era.
Long-term demand-side systemic collapse: Long-termism is being forced to re-evaluate
Real estate, education, long-term consumer goods, pension systems…
The common point of these systems is that they all implicitly assume: future people will be more numerous.
When this assumption is broken, all “long-term assets” will be re-priced.
II. Why is AI a Necessity in the Era of Population Deflation?
Human labor contraction vs. exponential expansion of AI capital
One side is a slow but certain decline; the other is exponential growth. The only expanding “labor” is not human.
If population deflation has changed the problem itself, then AI is becoming the only feasible answer.
AI is not just a productivity tool but a “de-humanization tool.”
We are used to describing AI as an “efficiency tool.”
But in reality, it addresses not efficiency but a structural issue: the system no longer needs as many people.
AI customer service, AI content generation, AI research assistants, AI trading systems—these are not about making humans 20% faster but about removing “humans” from the system’s necessary conditions.
In a world of population deflation, the real question is no longer: “Can we recruit someone for this position?” but rather: “Does this step still need human participation?”
AI is not replacing inefficient humans but rewriting society’s assumptions about “human labor.”
AI is the only workforce capable of exponential growth
Population: linear growth or even negative growth
AI: computing power, models, data → exponential expansion
This is why, in the context of extreme macro uncertainty, capital still heavily invests in AI.
Because in a population deflation era, only AI has “scalability.”
AI enables individuals to become new units of production
Production unit compression illustration (Team → Individual + AI)
From a “10-person team” to “1 person + AI,” production units are rapidly shrinking.
AI is fostering a new organizational form:
Single-person companies
Super individuals
Solo founders
AI-native creators
When society cannot mass-produce young people, the system can only choose to amplify the individual.
III. What role does Web3 play here?
If AI addresses “who does the work,” then Web3 tackles a more fundamental issue:
In a low-population era, how do we collaborate, allocate, and build trust?
How to collaborate at low cost in a low-population era?
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In an era of population deflation, the future belongs to "Super Individuals + AI + Web3"
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Author: Amelia I Biteye Content Team
Over the past hundred years, almost all economic growth models have assumed a premise: the next generation will be larger than this one.
More population means a more abundant labor force, a larger consumer market, and more predictable long-term returns.
But this premise is failing worldwide.
China, Japan, South Korea, Europe, and even the United States—declining birth rates are shifting from “statistics” to a structural reality.
And when “people” are no longer the most abundant, cheapest, and most replicable production factor, the entire narrative of technology and institutions will be forced to be rewritten.
The emergence of Web3 and AI is not a coincidental wave of technology but an inevitable response to the era of population deflation.
I. Population Discontinuity: An Underestimated Systemic Risk
When discussing population decline, many discussions stop at “labor shortages.”
But if you only see it as a “workforce issue,” you will severely underestimate its destructive power.
What population deflation truly erodes are three underlying structural layers.
Labor Force: From a cyclical issue to an irreversible structural scarcity
China’s Birth Population Discontinuity (2010–2023)
Visually, what you see is not a “slide,” but a clear cliff-like plunge.
Taking China as an example:
2016: approximately 17.86 million newborns
2023: approximately 9 million newborns
2025: expected to fall below 8 million
In 7 years, it has been halved.
What does this mean?
People born in 2023 will enter the labor market around 2045: not “fewer,” but “half as many.”
This is not cyclical fluctuation but a structural collapse of the population.
More critically, this trend has been long predicted: according to the UN’s “World Population Prospects 2022,” China’s working-age population (15–64) will decrease by about 170 million between 2020 and 2050.
In the past, business systems assumed: “People can always be recruited; it’s just a matter of price.”
But in an era of population deflation, the problem has changed.
Delaying retirement, introducing immigration, and fertility subsidies are slow variables.
And business systems cannot wait twenty years.
This is precisely where all technological narratives begin to deform.
Attention and creator supply are shrinking in tandem: the hidden Achilles’ heel of Web2
The decline in young populations brings not only a decrease in labor but also a more covert and deadly problem: who produces content, and who consumes it?
Decrease in content creators
Slower spread of new culture and narratives
Platform traffic growth models become invalid
The “user growth → traffic → advertising → revenue share” model Web2 relies on is fundamentally built on population expansion.
When new users no longer appear, platforms become competitive, rules change frequently, and trust between creators and platforms erodes.
This is the most difficult structural flaw for Web2 to repair in a population deflation era.
Long-term demand-side systemic collapse: Long-termism is being forced to re-evaluate
Real estate, education, long-term consumer goods, pension systems…
The common point of these systems is that they all implicitly assume: future people will be more numerous.
When this assumption is broken, all “long-term assets” will be re-priced.
II. Why is AI a Necessity in the Era of Population Deflation?
Human labor contraction vs. exponential expansion of AI capital
One side is a slow but certain decline; the other is exponential growth. The only expanding “labor” is not human.
If population deflation has changed the problem itself, then AI is becoming the only feasible answer.
AI is not just a productivity tool but a “de-humanization tool.”
We are used to describing AI as an “efficiency tool.”
But in reality, it addresses not efficiency but a structural issue: the system no longer needs as many people.
AI customer service, AI content generation, AI research assistants, AI trading systems—these are not about making humans 20% faster but about removing “humans” from the system’s necessary conditions.
In a world of population deflation, the real question is no longer: “Can we recruit someone for this position?” but rather: “Does this step still need human participation?”
AI is not replacing inefficient humans but rewriting society’s assumptions about “human labor.”
AI is the only workforce capable of exponential growth
Population: linear growth or even negative growth
AI: computing power, models, data → exponential expansion
This is why, in the context of extreme macro uncertainty, capital still heavily invests in AI.
Because in a population deflation era, only AI has “scalability.”
AI enables individuals to become new units of production
Production unit compression illustration (Team → Individual + AI)
From a “10-person team” to “1 person + AI,” production units are rapidly shrinking.
AI is fostering a new organizational form:
Single-person companies
Super individuals
Solo founders
AI-native creators
When society cannot mass-produce young people, the system can only choose to amplify the individual.
III. What role does Web3 play here?
If AI addresses “who does the work,” then Web3 tackles a more fundamental issue:
In a low-population era, how do we collaborate, allocate, and build trust?
How to collaborate at low cost in a low-population era?
DAO, permissionless collaboration, project-based contributions—
Web3 reconstructs “organizations” from long-term employment relationships into temporary, flexibly assembled networks.
As hiring becomes more expensive, trust and settlement must be automated.
How to allocate value in a low-population era?
In an era of labor scarcity, if value distribution is opaque, the system will quickly lose participants.
Token, on-chain incentives, real-time settlement—these are not about speculation but address a real problem:
How to make scarce labor willing to stay and continue building?
How to establish long-term trust in a low-population era?
The younger generation’s trust in long-term commitments is collapsing:
Distrust in pension systems
Distrust that platforms won’t change rules
Distrust in the long-term incentives of centralized institutions
Smart contracts and on-chain rules essentially answer:
When people are scarce and trust is lacking, can rules execute themselves?
IV. Web3 + AI: The Complete Solution in the Era of Population Deflation
A clearer and clearer consensus is forming: Web3 is not an opponent of AI but an institutional shell for the AI era.
What do AI agents need?
Identity
Wallet
Autonomous trading ability
Programmable rules
These are precisely Web3’s native capabilities.
In the near future, we may see:
AI-native companies
AI autonomous DAOs
AI-to-AI economic collaboration
In this system, humans may no longer be the largest group of economic participants.
V. Final thoughts: What does this mean for individuals?
For individuals, it is a harsh but true fact: you will no longer be buoyed by the “population growth” dividend.
But it also opens a new window:
AI amplifies personal productivity
Web3 enables individuals to participate directly in the global system
In a low-population world, high-cognition, high-action individuals are actually more welcome
If you are an investor or creator, here are some action points from Biteye:
For investors:
Population deflation is a 20–30 year certainty variable, not macro noise.
All business models relying on “population expansion” should be discounted.
Only three directions are truly worth long-term attention:
AI that can directly replace human labor
Tools that amplify individual productivity
Web3 infrastructure that can operate in low-trust environments
For creators/individuals:
Stop assuming “platforms will give you long-term returns.”
Try to become:
A node that can be amplified by AI
A personal brand that can migrate across platforms
An independent production unit capable of direct settlement
After all, in a population deflation era: the system won’t take care of you, but the system needs you.
This is not an era of increasing individual numbers,
but an era where a single person must become increasingly stronger; and what you must rely on are AI and Web3.