Speaker 1: Is everything we've been told about the markets a flat
Speaker 1: out lie. Well that's the question that deep Seek just
Speaker 1: through at Wall Street, sending high flying stocks like in
Speaker 1: Vidia into free fall. But more importantly, it shattered the
Speaker 1: illusion of business as usual and enforced investors everywhere to
Speaker 1: rethink some very important questions like what's going on under
Speaker 1: the hood at these companies? Do we understand our assumptions?
Speaker 1: What should real stock valuations be now that we know this,
Speaker 1: what does this mean for tech stocks like in Vidia,
Speaker 1: AI and the Nasdaq? And most importantly, what does this
Speaker 1: new paradigm tell us about where we should be investing
Speaker 1: and storing our wealth? And hint, it's not the old system.
Speaker 1: Now this video is going to flip your entire understanding
Speaker 1: of investing on its head. And by the end of
Speaker 1: this video you're going to see why deep Seek isn't
Speaker 1: just about AI, but it's something much, much bigger. Now
Speaker 1: real quick, my name is Mark Moss. I've been a
Speaker 1: tech focused investor since the early Internet days. I had
Speaker 1: two big exits under my belt. I've got twelve years
Speaker 1: in venture capital. I have a leadership role at a
Speaker 1: bigcoin venture capital fund. And now I'm taking you behind
Speaker 1: the scenes of the market shift that we see coming.
Speaker 1: So if you're serious about not just surviving but thriving
Speaker 1: in this new paradigm, let's go. All right, so we're
Speaker 1: jumping right in. We're talking about deep seek, but really
Speaker 1: this isn't about deep seak at all. All right, this
Speaker 1: is what deep Seak just exposed in the markets, and
Speaker 1: what I'm going to bring to you is again what
Speaker 1: the information I use for my venture capital fund, how
Speaker 1: we think about the markets. That's what I want to
Speaker 1: give you. This is not about deep seek. If you
Speaker 1: want the news, there's plenty of news sites out there.
Speaker 1: There's plenty of people on YouTube just regurgitating the news
Speaker 1: headlines and then give you all the details about that.
Speaker 1: You can get it on your own. I want to
Speaker 1: give you the insights that are actionable for us to use. Okay,
Speaker 1: but let's understand what deep seak is for a minute
Speaker 1: from a high level. So first of all, it's a
Speaker 1: new Chinese LLM, a large language model and AI that
Speaker 1: was just released. It's basically an open source AI version
Speaker 1: that just came out. All right, this is what changed
Speaker 1: the paradigm. Now. It took the top spot iTunes store,
Speaker 1: So it's been one of the most downloaded apps out there.
Speaker 1: It got so much usage that it kind of stopped working.
Speaker 1: They said there was an attack against it. We don't
Speaker 1: really know. It's kind of interesting that right when the
Speaker 1: United States shut down TikTok and basically blocked Chinese access
Speaker 1: to that, then China just opened up a large language model,
Speaker 1: which now everybody will give their most sensitive and most
Speaker 1: information to and they'll have that. That's all different conversation,
Speaker 1: but really what Deepseek is is yes, an AI model,
Speaker 1: but what it changed, the paradigm shift and what it
Speaker 1: exposed is that they were able to achieve the same
Speaker 1: thing that open ai and the other llms have done
Speaker 1: Gemini and Cloud et cetera. Not the same thing. They've
Speaker 1: achieved better things, but at a fraction of the cost,
Speaker 1: at like a tenth of the cost. And they did
Speaker 1: this by making their training way cheaper. And I want
Speaker 1: to get into all the details of how they do this.
Speaker 1: Rather than like a large LLM where it's had you
Speaker 1: have to feed it all the data, what they did
Speaker 1: is they created a way that it can learn on
Speaker 1: its own information. I'm not going to get into that,
Speaker 1: but it was a way cheaper way, so instead of
Speaker 1: taking one hundred and fifty billion to train, they got
Speaker 1: it done on just a couple And then the bigger
Speaker 1: one that upset the market was the amount of processing
Speaker 1: compute that was needed to do this, and they found
Speaker 1: that they don't need all the chips like in video
Speaker 1: makes all the GPU used to do this. They were
Speaker 1: able to do it on just a fraction of the chips.
Speaker 1: That's what changed everything. We'll get into that more. But
Speaker 1: really there was a wake up call and so this
Speaker 1: exposed a lot of things in the market. A couple
Speaker 1: of things. Number One, it exposed again the US thinks
Speaker 1: they're cracking down trying to be more secure, but it
Speaker 1: opened up major security flaws. Number Two, even as Trump
Speaker 1: himself tweeted out and talked about that, it really set
Speaker 1: a fire under the US to be more competitive, like, oh, shoot,
Speaker 1: we thought we were winning the race. We're not winning
Speaker 1: the race. There's people that may way more advanced. We
Speaker 1: better get with it. And then again, the wake up
Speaker 1: call was everything we thought we knew about the financial
Speaker 1: markets just changed. And that's exactly what we're going to
Speaker 1: focus on for this video. Again, I'm not giving you
Speaker 1: the news, I'm giving you the insights to make money. Okay,
Speaker 1: so that is what deep seek is. Now what happened,
Speaker 1: So basically, as it came out in video, one of
Speaker 1: the best performing stocks or maybe actually the best performing
Speaker 1: stock in the market plunged six hundred billion dollars now
Speaker 1: was about seventeen percent of its value. It was the
Speaker 1: single largest drop in a day in its history. It
Speaker 1: was a big deal. We can see in this chart
Speaker 1: right here to get like an illustration. Yes, all stocks
Speaker 1: go up and down. There's never been one that go
Speaker 1: up in a straight line or down a straight line.
Speaker 1: So they go up and down. But what we can
Speaker 1: see is this big gap right here. Look at that.
Speaker 1: So this is important to understand about the markets because
Speaker 1: this is a Chinese market that trades in a different
Speaker 1: time frame than what the US does, and so this
Speaker 1: affected things overnight. But then when the market opened, it
Speaker 1: created this gap where it gap downs. You don't see
Speaker 1: gaps on anywhere like this. There's the big piece. We're
Speaker 1: going to come back to what this means in a minute,
Speaker 1: but I want you to see that visually again, biggest
Speaker 1: one day loss. And really what we saw is that
Speaker 1: all AI models can be developed with now limited compute resources.
Speaker 1: So why in video the most? There was other stocks,
Speaker 1: we'll get into that. Why and video the most well,
Speaker 1: because in Vidia makes the chips for the AI, right,
Speaker 1: And so basically what the stock is, the PE ratio
Speaker 1: is sort of like this forward looking ratio of what
Speaker 1: they think sales and earnings and revenues will be. And
Speaker 1: so as AI is projected to grow, they expected their
Speaker 1: demand for their chips, their GPUs to continue to go
Speaker 1: up linearly at least, if not exponentially like that. But
Speaker 1: what we just found, how overnight all these assumptions are
Speaker 1: wrong because now what Deepsek was able to do was
Speaker 1: provide something better than what we had before with one
Speaker 1: tenth of the resources. And so now everything that we thought,
Speaker 1: like in Video's growth is going to be like this,
Speaker 1: And we're like, well, wait a minute, no, it's not.
Speaker 1: Because if Deepseak was able to do something like this,
Speaker 1: that brings their growth down like this. But what if
Speaker 1: what if deep Seak too, another competitor comes out and
Speaker 1: finds a way to even do it for one tenth
Speaker 1: of that, and now all of a sudden it goes
Speaker 1: like this. And so what we're seeing is technology changing
Speaker 1: so fast that it's challenging all the assumptions that we've
Speaker 1: had because it moves so quickly. A small business owner,
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Speaker 1: And it's not just in Nvidia. This is really all
Speaker 1: the tech stocks and really the AI shock that's happened.
Speaker 1: And so we saw, like I said, one hundred and
Speaker 1: fifty seven billion was spent for open Ai to train
Speaker 1: their llms. That's how much we're spent. So then we
Speaker 1: think about, okay, what does that mean for the amount
Speaker 1: of capital that's going to flow into the markets, right,
Speaker 1: because as an investor, we want to go, well, how
Speaker 1: much capital will flow in? How much how much do
Speaker 1: we think each company can capture from that will be
Speaker 1: the future valuation so we can invest. Right, So we thought, well,
Speaker 1: if they spend one hundred and fifty seven billion, then
Speaker 1: other companies will need about that money. But now we
Speaker 1: just found that they don't need that money. They need
Speaker 1: about a tenth of that to provide something better. And again,
Speaker 1: what if somebody else comes out next and does it
Speaker 1: for a tenth of the cost as well? That caused
Speaker 1: the entire Nasdaq to drop about three percent. Now, the
Speaker 1: NASDAK is an index, right, so it represents sort of
Speaker 1: all the tech stocks that are out there. So you
Speaker 1: might go, well, you know, I mean, in VIDFL seventeen percent,
Speaker 1: but the Nasdaq only fell three percent, So maybe y'all
Speaker 1: make a strategy around that and don't worry. We're going
Speaker 1: to come back to that in a second. But basically
Speaker 1: we saw the chip makers and the data centers really
Speaker 1: get hit the most, because of course the chip makers.
Speaker 1: We thought their demand was going to go like this,
Speaker 1: and now maybe it's not. And we saw the data
Speaker 1: centers expanding because we need more compute space, and now
Speaker 1: maybe we don't need that as well. Right, so again,
Speaker 1: if they can make this for cheaper and we need
Speaker 1: less investment. But even more importantly, we also saw that
Speaker 1: maybe there's not really a moat. So we understand that
Speaker 1: like open Ai and Claude and Lama and Xai and
Speaker 1: now Deepseek, these are all like base layer applications and
Speaker 1: we're finding like narrow use cases to be built on
Speaker 1: top of them. And what we typically see is if
Speaker 1: you think about like a base layer like the Internet,
Speaker 1: the value doesn't accrue on the base layer, the value
Speaker 1: actually accrues on the narrow applications on the brands on
Speaker 1: top of it. And so I still think there's tremendous
Speaker 1: growth potential being built all around here. But what we
Speaker 1: think about the base layers down here, there really is
Speaker 1: no mode. If deep Seak can just come out for
Speaker 1: a tenth of the cost and the time and all
Speaker 1: these things and be better, what does that mean for
Speaker 1: everything else? And again that challenges everything that we know. Okay,
Speaker 1: but here's the big paradigm shift that I want to
Speaker 1: get through to today, and that is that equities being
Speaker 1: used as a store of value. So we make money,
Speaker 1: we hopefully don't spend it all, we have some leftover.
Speaker 1: Where do we save that? That's our store, that's our value.
Speaker 1: Where do we save that so we can put that
Speaker 1: into goal We can put into bonds, real estate equities,
Speaker 1: things like that, and typically we use equities for that.
Speaker 1: We're storing our wealth for a long term. But what
Speaker 1: we just found out, as deep Seek exposed, is that
Speaker 1: is a very dangerous game. Why is that Because I'm
Speaker 1: buying these companies like Nvidia, we don't really understand anything.
Speaker 1: I don't understand the technology into the chip. I don't
Speaker 1: understand the market dynamics of that. And even the people
Speaker 1: that thought they did found out they didn't when deep
Speaker 1: Seek was able to just change that overnight. And so
Speaker 1: there's all these unknown disruptions if we buy these companies,
Speaker 1: there's all these disruptions that could possibly come that we
Speaker 1: don't know, we can't understand, we can't quantify. So back
Speaker 1: to sort of the Nasdaq index, we might go, well,
Speaker 1: instead of buying one company, I'll just buy the index,
Speaker 1: right I'll buy the whole Nasdaq index, But what if
Speaker 1: China releases something like d seek that's better. Would the
Speaker 1: money flow from the nasdak over to the Chinese stock market?
Speaker 1: Or what if the US This isn't really hypothetical. What
Speaker 1: if what happens when I should say the US continues
Speaker 1: to print more money and continue to devalue and debase
Speaker 1: their currency. So you own the new index, but it's
Speaker 1: denominated in the OS dollar. What happens then? Those are
Speaker 1: big problems that all of a sudden has been brought
Speaker 1: to the forefront of everybody with deep Seek exposed, that
Speaker 1: we have to answer. So the question is where do
Speaker 1: we go? And I think this is where the big
Speaker 1: paradigm shift is going to go. That is that we
Speaker 1: need a yard stick for a store value. How do
Speaker 1: we measure it? Right? So, if I measure it in
Speaker 1: US dollars, it shows me one thing. If I measure
Speaker 1: it in Chinese you want it shows me another. If
Speaker 1: I measured it in boulevard shows me something different. Or
Speaker 1: if I measure it in oil or oranges or rice
Speaker 1: or gold, and so it depends on what yardstick I'm using,
Speaker 1: it shows me different things. How could you organize someone
Speaker 1: to build a house if nobody had the same measuring tape,
Speaker 1: as a matter of fact, that they didn't have a
Speaker 1: measuring tape, they had bungee cords. How could you build
Speaker 1: a house? How could you organize that? How can you
Speaker 1: organize an economy in a market when everybody has different
Speaker 1: measuring tapes. The supply of dollars changes every day, the
Speaker 1: supply of oil changes every day, the supply of on
Speaker 1: or whatever. You get that, So how do we measure
Speaker 1: our wealth? I'm measuring in the Nasdaq and US dollars,
Speaker 1: but the US dollars being debased, so we have a
Speaker 1: problem now. Ludwig gun misis one of my favorite economists
Speaker 1: from the Austrian school of economics. He said that in
Speaker 1: the world of economics, there's no such thing as a constant.
Speaker 1: So all throughout history commodities have been sort of money.
Speaker 1: We needed a commodity money like gold, for example, or
Speaker 1: oil or something like that. And they work good because
Speaker 1: they fit some of the money attributes. They were scarce, right,
Speaker 1: But the problem is, as I already said, the value
Speaker 1: or not the value, but the supply the quantity of
Speaker 1: those commodities was changing all the time. There's no sustaining
Speaker 1: as a consistant, but there is today, and so I
Speaker 1: believe that bitcoin is the first asset that we have
Speaker 1: that has a constant There's twenty one million, there won't
Speaker 1: be any more. And I believe this is the new
Speaker 1: hurdle rate that all assets will be measured against. I've
Speaker 1: been talking about this for a while. If you've been
Speaker 1: watching my videos, you surety already understand this, and that
Speaker 1: the hurdle rate is the rate that we have to beat.
Speaker 1: So right now, the US monetary supply is expanding between
Speaker 1: ten to sixteen percent a year, depending on what measurement
Speaker 1: you're looking at. So, for example, the Fed balance sheet
Speaker 1: has been averaging about a sixteen percent growth year over
Speaker 1: year for the last four years. That's the hurdle rate.
Speaker 1: That means I don't have to beat inflation at three
Speaker 1: percent to keep ahead of inflation. The real number have
Speaker 1: to beat is sixteen percent. Now, there's not a lot
Speaker 1: of assets that do that. The S and P five
Speaker 1: hundred hasn't been doing that over the four year period,
Speaker 1: neither the NASDAK has barely been keeping up, whereas bitcoin's
Speaker 1: been doing about fifty to sixty percent. And I believe
Speaker 1: that's the new hurdle rate, the reason why one it's
Speaker 1: beating it from return. But it's bigger than that. It's
Speaker 1: what Deepseeak has showed us right here. It's that any
Speaker 1: of these yardsticks can change, and any of these things
Speaker 1: are susceptible to disruption. We see with bitcoin there is
Speaker 1: no disruption that's there. There's no way to disrupt that technology. Sure,
Speaker 1: you can talk about quantum computing in fifteen years from now.
Speaker 1: That's already a known thing. There's already fixes being in
Speaker 1: place for that. Two, it can't be changed. So like
Speaker 1: all the other cryptocurrens, they have governance and they can
Speaker 1: vote on things, and they can change things. Bitcoin doesn't change.
Speaker 1: It can't be debased. You can't just print more currency
Speaker 1: to debase it. And so I believe for all of
Speaker 1: those reasons, what we're going to see is a massive
Speaker 1: paradigm shift. And this is what the world's already seen.
Speaker 1: As a matter of fact, at the time of this recording,
Speaker 1: I saw today another major sovereign central bank saying they
Speaker 1: want to add bitcoin to the balance sheet. The world
Speaker 1: is seeing this right here, and there's going to be
Speaker 1: a massive shift. And so really the trifecta. It's not
Speaker 1: just bitcoin. The trifecta in this new paradigm, in this
Speaker 1: new economy, this new money economy is AI. AI is
Speaker 1: the disruptive engine of growth. AI is super important. It's
Speaker 1: going to increase efficiency, it's going to lower cost, and
Speaker 1: it's going to create a massive amount of growth and
Speaker 1: abundance in AI. But that's going to push things cheaper
Speaker 1: and cheaper and cheaper, so that disrupts the financial markets
Speaker 1: that we're using to invest in because we want them
Speaker 1: to go up in value. So we use AI, but
Speaker 1: then we use bitcoin as a key financial hedge. So
Speaker 1: the money that we put into here goes up and
Speaker 1: up and up over time and holds that because it
Speaker 1: can't be disrupted, it can't be debased like the US
Speaker 1: dollar or the yuan or the ruin. Mby then, the
Speaker 1: third part of the trifecta is energy, because the main
Speaker 1: thing that both bitcoin and AI need is energy. It's
Speaker 1: a crucial resource. We can't live without energy. I couldn't
Speaker 1: be doing this, you couldn't be watching this video without energy.
Speaker 1: And so this is the trifecta in the new paradigm.
Speaker 1: And this is what Deepseat showed everybody. This is what
Speaker 1: the world has seen, at least the smart people, and
Speaker 1: I'm trying to give it to you again. This is
Speaker 1: not the news. You can go read the news on
Speaker 1: your own. Let me know what you think about the
Speaker 1: new paradigm and the trifecta down the comments down below.
Speaker 1: As always, give me likes if you like this video.
Speaker 1: If you don't eat what something's down, that's okay. Tell
Speaker 1: me either way. And that's what I got. All right,
Speaker 1: to your success. I'm out.