Demography, Social Networks and Energy
At the heart of this booming bull market lies a profound network—a colossal web of billions of people interconnecting to shape a groundbreaking production system for humankind.
Have you ever paused to ponder the most crucial variable in economics? It's a force often overlooked, yet it wields extraordinary power—the remarkable impact of demography. But here's the thing: demography alone isn't enough to create a transformative shift. The real magic unfolds when we couple it with platforms that foster communication, facilitate value exchange, and impart profound meaning.
When we think of platforms, our minds may wander to trillion-dollar market cap giants like Apple, Google, Facebook (now Meta), Microsoft, and others. Throughout the annals of history, networks of people have been the driving force propelling progress. It all began with the evolution of language, paving the way for the birth of religions, followed by the revolutionary concept of money, ultimately culminating in the grand era of technology. These vast, multifaceted networks have been steadfast companions, guiding us through the labyrinth of unpredictability that defines our environment.
Allow me to draw a compelling parallel between these modern networks and something familiar—languages.
Consider Android, boasting a staggering 3 billion users—it rivals the combined might of Mandarin Chinese, English, and Spanish speakers! Windows, with its 1.3 billion users, takes on the challenge against English's 1.132 billion speakers. And iOS, with over 1 billion users, competes with the language prowess of Mandarin's 1.117 billion speakers.
Android: Over 3 billion users 🆚 Mandarin Chinese & English & Spanish speakers.
Windows: Over 1.3 billion users 🆚 English: 1.132 billion speakers
iOS: Over 1 billion users 🆚 Mandarin: 1.117 billion speakers
macOS: Over 100 million users 🆚 Japanese: 128 million speakers
Linux: Tens of millions of users 🆚 Dutch: 23 million speakers
The same striking pattern emerges in technology platforms: Facebook, WhatsApp, and YouTube unite over 2 billion users, matching the collective influence of English and Mandarin combined. Instagram, with its 1.3 billion users, stands shoulder to shoulder with the language impact of 1.132 billion English speakers. Meanwhile, LinkedIn, with over 700 million users, thrives on par with the linguistic prowess of 630 million Hindi speakers.
Facebook, Whatsapp, YouTube Over 2 billion users 🆚 English+ Mandarin
Instagram: Over 1.3 billion users 🆚 English: 1.132 billion speakers
Linkedin: Over 700 million users 🆚 Hindi: 630 million speakers
Just like powerful platforms, religions exemplify the strength of networks. Christianity's 2.4 billion believers rival the collective force of English, Mandarin, and Hindi speakers. Islam, with 1.9 billion followers, stands tall against the sway of English. Hinduism's 1.2 billion adherents compete with the significance of Mandarin, while Buddhism's 500 million believers hold their ground, much like Spanish speakers. Sikhism, with over 30 million followers, leaves an indelible mark, and Judaism, with over 14 million followers, stands resolute in its own right.
Christianity: Over 2.4 billion believers 🆚English+ Mandarin + Hindi
Islam: Over 1.9 billion believers English
Hinduism: Over 1.2 billion believers 🆚 Mandarin
Buddhism: Over 500 million believers 🆚 Spanish
Currencies, too, follow a similar pattern. The USD dollar is accepted by billions of people beyond the frontiers of the US. CNY, while not a universally accepted currency, is embraced by billions of Chinese citizens. The Indian Rupee INR is used by 1.3 billion Indian citizens, and the Euro serves the 343 million people of the European common market. Bitcoin, a unique amalgamation of money and technology, is utilized by 120 million people, transcending the confines of a specific geography.
Bitcoin active addresses per day.
Networks of billions of people, processing power and electricity
Consider the sheer magnitude of over 2 billion people connected through Android phones, 1.3 billion through iPhones, and an astonishing 2 billion using Facebook and WhatsApp.
This tremendous demand for connectivity comes with a need for unmatched processing power—calling forth cutting-edge technologies such as NVIDIA microprocessors, TSM wafers, and ASML cutting edge lithography machines.
But the tale doesn't conclude with mere words—it triggers a profound ripple effect, sparking an insatiable thirst for electricity and propelling the demand for essential resources like oil, gas, uranium, and renewable energy. Intriguingly, amid this interconnected dance of trillion-dollar companies, a unique player stands out— Saudi Aramco, a titan in the energy sector and the sole trillion-dollar company not belonging to the tech realm.
Uranium Price. Source: Trading economics.
Saudi Aramco Price. Source: Tradingview.
Now, let's delve into the fundamental question: why do we seek to interconnect so many people? The answer lies in using this sprawling network to create serendipity engines—unearthing ingenious solutions to global challenges like climate change, envisioning the possibilities of nuclear fusion, revolutionizing protein programming, exploring the realms of biomolecular farming, and even empowering humanity with digital property collateral. The potential is boundless—perhaps it could even propel us on an interplanetary journey, making us an interplanetary species!
But here's the intriguing aspect of networks—when they falter and fall short of their promises, they must confront the unyielding laws of evolution and adaptation. The bubble of lofty dreams bursts, yet amidst the tumult, there remains hope. From within these networks emerges a special subgroup, equipped with radical solutions to address the pressing challenges that our civilization faces.
At the heart of this booming bull market lies a profound network—a colossal web of billions of people interconnecting to shape a groundbreaking production system for humankind. It's as tangible as the solid bricks that lay the foundation of a soaring skyscraper. This network orchestrates a symphony of collaboration, propelling us forward into an era of unprecedented progress and innovation.
Guillermo Valencia A.
Co-founder Scale & Macrowise.
June 18th , 2023
Brazil