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27 sats \ 4 replies \ @cleaningup12 18h \ on: Why I'm long-term bullish on the Middle East econ
TL:DR
In other words, with solar power rising and oil becoming less important, and with its demographics in a favorable position, the Middle East is primed for an economic and political reinvention. The green energy transition may not be quite as momentous an event for the Middle East as the Industrial Revolution was for Europe, but it’s still going to be a big deal.
Half a century from now, the desert may bloom, and the region may be a powerhouse of green energy, industry, and software, rather than the playground of oil sheikhs, warlords, and hyper-religious madmen. I know it’s a bold prediction, but stranger things have happened.
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.
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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
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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.
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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
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