Rise of a New Power Structure From Energy, Computing to Bitcoin
New Power Structure Energy, Computing, Bitcoin
“Whether you call it RWA, DeFi, or any other name, I firmly believe that the future of all markets is on the chain.”
Author: Meltem Demirors
Translation: Luffy, Foresight News
The power center of the world is changing. Ten years ago, oil and gas companies and banks dominated the market; now it is technology companies, financialization (with a P/E ratio of over 100).
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As the digitization of our lives progresses, value creation is happening in new areas, and a few industries and companies are prepared to take full advantage of this shift.
This also affects the geopolitical landscape. We live in a multipolar world, where power has always depended on a country’s ability to access natural resources (oil).
However, a new power structure is emerging.
The annual revenue of many companies even exceeds the GDP of G20 economies. People spend a lot of time and energy in the virtual world. The power and influence of public blockchain protocols are constantly growing.
Therefore, as an investor, I ask myself: how should I structure my investment portfolio?
Energy, computing, and cryptocurrencies will make a digital, multipolar future possible.
A thought keeps coming to mind: producing and processing bits and bytes in the digital world still requires atoms in the physical world. We don’t usually talk about both in the same context, but they are both important.
Let’s start with energy.
More technology means more energy generation and consumption. Our culture often likes to criticize energy consumption, but it is an inevitable reality of human progress.
Despite the growing renewable energy sector, fossil fuels still dominate our energy infrastructure.
The dominance of old energy is secure, but fortunately, new models of energy generation and management are emerging. Here are some models that excite me:
New energy is in high demand. I am a strong supporter of nuclear energy, esp SMR (Small Modular Reactors), such as @oklo and @NuScale_Power.
Peer-to-peer models are growing. For example, virtual power plants that connect smaller-scale generation units or battery arrays to form some kind of digital utility. Companies like @get_daylight are leveraging a decentralized physical infrastructure network (DePIN) that uses tokenized incentive models to build such networks.
Lastly, decentralized energy resources and grid management tools allow us to balance grid loads more efficiently and reduce energy waste. These systems require open protocols for communication, control, and coordination.
Next comes computing and connectivity.
The demand for access to high-performance computing and connectivity is limited by the following factors:
Supply: The supply is simply not enough;
Physical factors – Data is not massless and does not propagate in straight lines
But there are also exciting new models that can help alleviate some of these limitations:
New types of semiconductors are leveraging materials science innovations such as graphene to alleviate supply chain and production bottlenecks, reducing costs and enabling innovations in chip design, such as optical/opto chips that use photons instead of electrons to enhance speed and efficiency
Edge computing through containerized data center solutions to provide computing closer to demand locations. These container data centers can also co-locate with stranded energy assets, similar to what @CrusoeEnergy did with @togethercompute; or what @comLianGuaiss_mining plans to do with @oklo.
Mesh networks are another innovation that is well-suited for a decentralized physical infrastructure network (DePIN) model, with many companies (such as
@helium, @AltheaNetwork, etc.) leveraging blockchain infrastructure and token incentives to aggregate network resources and enable P2P bandwidth sharing.
After understanding the current state of energy and computing, we come to my favorite topic, cryptocurrencies. Bitcoin is a currency supported by energy and computing.
The increasingly digital world not only needs a native currency for transactions among billions of people, but also for transactions among trillions of AI agents and connected devices.
In addition to driving the digital economy, cryptocurrencies and public blockchain networks also present a greater opportunity to provide the foundation for trillions of dollars of infrastructure investment needed for the future.
Whether you call it RWA (Real World Assets), DeFi (Decentralized Finance), or by any other name, I firmly believe that the future of “all” markets is on-chain.
We are still in the early stages of exploring how cryptographic primitives can change the unit economics of infrastructure investments.
Many early experiments have not been successful in terms of adoption and scale, but they have demonstrated the potential to shift from an enterprise model to a peer-to-peer model in funding large-scale infrastructure projects.
Bitcoin (and PoW Ethereum) has facilitated billions of dollars of investment in physical infrastructure through the co-location of renewable energy assets (and GPUs) in ASIC form, now supporting trillions of dollars of annual economic activity through that physical infrastructure.
This is the blueprint for the future that we will build at the intersection of the digital world of bits and bytes and the physical world of atoms.
I’m excited to continue exploring this intersection and look forward to collaborating with companies and projects in the crypto ecosystem to shape the curves in our digital and physical worlds.
It’s time to build… power plants and data centers!