The energy sector is positioned for increased products demand and growth as blockchain utility expands
When I say energy sector, I'm generally referring to a lot of things including petroleum, where we're looking at oil and gas companies, Solar energy where we're looking at companies developing this technology which includes battery manufacturers, getting it now right?
I personally believe petroleum should at some point be less demanded amongst others given the constant developments to get rid of the usage of energy produced by burning fuels. That said, other energy companies could see their stocks or native crypto assets, if any, sky rocket as prices of "electrical energy" sees increased demand. This makes me believe that as "investors" "builders" and "contributors" to the technology that shines light on "energy" we may want to dive into some investment in this sector.
But why? What does blockchain have to do with energy?
Well, as with servers and with the internet generally, most people do not quite know how it is all wired - pun intended :)
To break it down, the internet is simply a frontend, It typically displays things that are being stored somewhere onto the screen of our devices. So let's say I take a picture of my cat, and wish for others to see such beauty, I decide to log onto Facebook right? The usual and upload it. Now, just as my phone battery can always die and people meeting me in person can't get to see the pictures of my cat until I recharge, Facebook, where the picture of my cat is now at can likewise go off, cause something powers it, so in order not to, it will need constant access to power or energy.
The servers that control Facebook's contents are like the internal or externally installed memory of a phone, it stores the picture of my cat until a user requests it like me opening up my gallery, it displays it onto the screen of the user. To the non tech smart folks, this is what happens when you go to that Angelina Rodríguez profile to see some fine pictures, apologies if that's an actual person you know, haha.
How it relates to blockchain, oh yes!
Blockchains are servers just that they aren't governed as servers and have far more utilities built into them. Instead of having one person/company single-handedly controlling the data passed through a network, the responsibility or task is shared amongst different people, this is why it is called distributed ledger technology.
So, in literal sense, if Facebook was to turn to blockchain technology for data hosting, different people would now have the picture of my cat stored on their computers. This makes my little car's memory more secure because more people now have a copy so if one loses it, another has it, and not a single one can manipulate the data because others would simply look at their copy and figure that it is different.
How this increases energy demand
I believe it should already be obvious but anyways, the fact that more and more companies will turn to blockchain technology as a data management system means that more distrusted computers carrying out this task of hosting content will require energy to function. It doesn't really matter how little energy the technology will enhance its system to use, the fact that there will be incentives to engage in this will always keep the price relatively appreciative to the sector.
Energy is hell of an asset that is weirdly neither created nor destroyed, just like the wind, which is literally one mechanism for producing electrical energy. In all of these, I expect the battery producers to benefit the most given that these are ways to store electrical energy. Since electricity can be stored in batteries, those looking to use it as some sort of hedge as the price becomes appreciative like physical assets will cause the battery market to see increased demand.
There's a whole lot that will be caused to see growth as blockchain becomes more widely utilized. For investors, this means a whole lot of opportunities to build wealth.
Do leave a comment if any.
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