Hash is King
The coming geopolitical transition from oil -> hashrate as the defining global commodity.
We have fought wars to secure access to oil and to preserve the status of the petrodollar, but that era is waning. The death knell of the United States’ nation-building attempt in Afghanistan is the last chapter in a long story of empires’ futile efforts to control the region.
The fall of Siagon heralded the beginning of the great fiat experiment as we “temporarily” left the gold standard and the fall of Kabul poetically marks the end.
What comes next?
The scarce resource nation-states used to compete for was oil, now it is compute & semiconductors.
Most of the world hasn’t realized it yet, but we’ve entered into a new era not defined by the Exxons or Saudi Aramcos, but by our FAAMG and “Tech Overlords”. This means the most important commodity of the future is within tech: compute & semiconductors.
From Meltem Demirors, CSO Coinshares.
Bitcoin mining is already the largest and most powerful compute network in the world, consuming as much energy as the entire country of Sweden. It is also the most demanding & hungry for compute & compute infrastructure, namely semiconductors.
As the world’s nations wake up to realize that their goal is not to secure oil interest, but rather silicon & metals related to compute production, geopolitics will shift to prioritizing foundries, mining, and compute supply chain.
Bitcoin mining is at the intersection of this transition. Perhaps nation-states will project their force by producing hashrate instead of foreign occupation.
The incentive model changes in this “multi-polar world" away from securing energy abroad and towards securing energy domestically. Now that power can now be communicated digitally in the form of hashrate & compute, this bodes well for innovation in energy, manufacturing, and chip fabrication.
I, for one, am optimistic that this will lead to fewer resources being spent towards never-ending wars and more focus on building infrastructure domestically. Build mines not bombs.
-Charlie Spears, Strategy
Legacy industries still don’t get it —
Chase bank shuts down Compass Mining’s accounts.
The best and brightest leave Wallstreet for crypto.
Trends —
Corporate holdings of Bitcoin plateau.
Texas is winning the great hashrate migration.