pull down to refresh
15 sats \ 3 replies \ @Undisciplined 20h \ parent \ on: Why I'm long-term bullish on the Middle East econ
Thanks for the summary.
I suppose the issue is that, even in this best case scenario, energy will be much cheaper in real terms. That would likely mean, being specialized around producing it will be less lucrative than it currently is.
It is interesting, though, that they are poised to maintain the competitive advantage in producing energy even if the primary energy source changes.
You could argue that while the cost of energy might decrease, the volume of energy consumed globally could increase, potentially offsetting some revenue loss.
And they've got 🏜 deserts and a lot of it, prime solar energy conversion.
They've also got the liquidity to invest in the technology now.
Green Energy game theory about to play out
reply
Yeah, they would still be the lowest marginal cost providers, which means they'd have the most profitable energy production.
The other part is that energy production will be more decentralized, with lower barriers to entry, which will make it harder to maintain high margins.
reply
The other part is that energy production will be more decentralized, with lower barriers to entry, which will make it harder to maintain high margins.
Game theory page 1.
Will be interesting to see the hash rate wars play out with this on the horizon, will companies like ocean be able to compete with antpool et al
reply