is everything we've been told about the markets a Flatout lie well that's the question that deep seek just throughout Wall Street sending highflying stocks like envidia into freef fall but more importantly it shattered the illusion of business as usual and it forced investors everywhere to rethink some very important questions like what's going on under the hood of these companies do we understand our assumptions what should real stock valuations be now that we know this what does this mean for tech stocks like Nvidia Ai and the NASDAQ and most importantly what does this new paradigm tell
us about where we should be investing and storing our wealth and hint it's not the old system and this video is going to flip your entire understanding of investing on its head and by the end of this video you're going to see why deep seek isn't just about AI but it's something much much bigger now real quick my name is Mark Moss I've been a tech focused investor since the early internet days I had two big exits under my belt I've got 12 years in venture capital I have a leadership role at a Bitcoin Venture
Capital fund and now I'm taking you behind the scenes of the market shift that we see coming so if you're serious about not just surviving but thriving in this new paradigm let's go all right so we're jumping right in we're talking about deep seek but really this isn't about deep seek at all all right this is what deep seek just exposed in the markets and what I'm going to bring to you is again what the information I use for my Venture Capital fund what how we think about the markets that's what I want to give
you this is not about deep seek if you want the news there's plenty of news sites out there there's plenty of people on YouTube dis regurg hting the news headlines and they can give you all the details about that you can go get that on your own I want to give you the insights that are actionable for us to use okay but let's understand what deeps is for men from a high level so first of all it's a new Chinese um llm a large language model and AI that was just released it's basically an open-source
AI version that just came out right this is what changed the Paradigm now it took the top spot iTunes store so it's been one of the most downloaded apps out there it got so much usage that it kind of stopped working they said there was an attack against it we don't really know it's kind of interesting that right when the United States shut down Tik Tok and basically blocked Chinese access to that then China just opened up a a large language model which now everybody will give their most sensitive and most in-depth information to and
they'll have that that's a whole different conversation but really what deep seek is is yes an AI model but what it changed the paradigm shift and exposed is that they were able to achieve the same thing that open Ai and the other llms have done Gemini and Cloud Etc uh not the same thing they achieved better things but at a fraction of the cost at a at like a tenth of the cost and they did this by making their training way cheaper and I want to get in all the details of how they do this
rather than like a large llm where had you have to feed it all the data what they did is they created a way that it can learn on its own as depth information I'm not going to get into that but it was a way cheaper way so instead of taking 150 billion to train they got it done on just a couple uh and then the bigger one that upset the market was the amount of processing compute that was needed to do this and they found that they don't need all the chips like Nvidia makes all
the gpus to do this they were able to do it on just a fraction of the chips that's what changed everything we'll get into that more but really there there was a wakeup call and so this this Expos a lot of things in the market a couple things number one it exposed uh again the US thinks they're cracking down trying to be more secure but it opened up major security flaws number two even As Trump himself tweeted out and talked about that it really set a a fire under the US to be more competitive like
oh shoot we thought we were winning the race uh we we're not winning the race uh there's people that way more advanced we better get with it um and then again the wakeup call was everything we thought we knew about the financial markets just changed and that's exactly what we're going to focus on for this video again I'm not giving you the news I'm giving you the insights to make money okay so that is what deep seek is now what happened so basically as it came out Nvidia one of the best performing stocks maybe actually
the best performing stock in the market um plunged $600 billion that was about 177% of its value it was the single largest drop in a day in its history it was a big deal uh we can see in this chart right here to get like an illustration yes all stocks go up and down there's never been one that go up in a straight line or down in a straight line so they go up and down but what we can see is this big gap right here look at that so this is important to understand about
the markets because this is a Chinese market that trades in a different time frame than what the US does and so this affected things overnight but then when the market opened it created this Gap where it gapped down see you don't see gaps on anywhere like this this is a big piece we're going to come back to what this means in a minute but I want you to see that visually again biggest one- day loss and really what we saw is that all AI models can be developed with now limited compute resources so why Nvidia
the most there was other stocks will get into that why Nvidia the most well because Nvidia makes the chips for the AI right and so basically what the stock is the p ratio is sort of like this forward-looking ratio of what they think sales and earnings and revenues will be and so as AI is projected to grow they expected their a their their demand for their chips their gpus to continue to go up linearly at least if not exponentially like that but what we just found out overnight all these assumptions are wrong because now what
deep seek was able to do was provide something better than what we had before with on10th of the resources and so now everything that we thought like nvidia's growth is going to be like this and we're like well wait a minute no it's not not because if deep deep seek was able to do something like this that brings their growth down like this but what if what if deep seek to another competitor comes out and finds a way to even do it for one tenth of that and now all of a sudden it goes like
this and so what we're seeing is technology changing so fast that it's challenging all the assumptions that we've had because it moves so quickly and it's not just Nvidia this is really all the tech stocks and really the AI shock that's happened and so we saw um like I said 157 billion was spent for open AI to train their llms that's how much were spent so then we think about okay what does that mean for the amount of capital that's going to flow into the markets right because as an investor we want to go how
much Capital will flow in how much com um how much do we think each company can capture from that what will be the future valuation so we can invest right so we thought well if they spend 157 billion then other companies will need about that money but now we just found that they don't need that money they need about a tenth of that to provide something better and again what if somebody else comes out next and does it for a tenth of the cost as well that caused the entire NASDAQ to drop about 3% now
the NASDAQ is a Index right so it represents sort of all the tech stocks that are out there so you might go well you know I mean envidia fell 177% but the NASDAQ only fell 3% so maybe I'll make a strategy around that and don't worry we're going to come back to that in a second but basically we saw the chip makers and the data centers really get hit the most because of course the chip makers we thought their demand was going to go like this and now maybe it's not and we saw the data
centers expanding because we need more compute space and now maybe we don't need that as well right so again if they can make this for cheaper and we need less investment but even more importantly we also saw that maybe there's not really a moat so we understand that like open Ai and Claude and llama and xai and now deep seek these are all like base layer applications and we're finding like narrow use cases to be built on top of them and what we typically see is if you think about like a base layer like the
internet the value doesn't acre on the base layer the value actually acrs on the narrow applications on the brands on top of it and so I still think there's tremendous uh growth potential being built all around here but what we think about the base layers down here there really is no moat if deep seat can just come out for a tenth of the cost and the time and all these things and be better what does that mean for everything else and again that challenges everything that we know okay but here's the big paradigm shift that
I want to get through to you today and that is that equities being used as a store of value so we make money we hopefully don't spend it all we have some left over where do we save that that's our sto that's our value where do we save that so we can put that into gold we can put put into bonds real estate equities things like that and typically we use equities for that we're storing our wealth for a long term but what we just found out as deep seek exposed is that is a very
dangerous game why is that because I'm buying these companies like Nvidia without really understand anything I don't understand the technology into the chip I don't understand the market dynamics of that and even the people that thought they did found out they didn't when deep seek was able to just change that overnight and so there's all these un known disruptions if we buy these companies there's all these disruptions that could possibly come that we don't know we can't understand we can't quantify so back to sort of the NASDAQ index you might go well instead of buying
one company I'll just buy the index right I'll buy the whole NASDAQ index but what if uh China releases something like DC that's better would the money flow from the NASDAQ over to the Chinese stock market or what if the US this isn't really hypothetical what if uh what happens when I should say the US continues to print more money and continue to devalue and debase their currency so you own the NASDAQ index but it's denominated in the US dollar what happens then those are big problems that all of a sudden has been brought to
the Forefront of everybody with deep seek exposed that we have to answer so the question is where do we go and I think this is where the big paradigm shift is going to go that is that we need a yard stick for a store value how do we measure it right so if I measure it in US Dollars it shows me one thing if I measure it in Chinese you want it shows me another if I measure it in boulevar it shows me something different or if I measure it in oil or oranges or rice
or gold and so it depends on what yard stick I'm using it shows me different things how could you organize someone to build a house if nobody had the same measuring tape as a matter of fact they didn't have the measuring tape they had bungee how could you build a house how could you organize that how can you organize an economy and a market when everybody has different measuring tapes the the the supply of dollars changes every day the supply of oil changes every day the supply of Yuan or or whatever you get that so
how do we measure our wealth I'm measuring the NASDAQ and US dollars with the US Dollars being debased so we have a problem now le vanan misis one of my favorite economists from the Australian school of e economics he said that in the world of Economics there's no such thing as a constant so all throughout history Commodities have been stored of money we needed a commodity money like gold for example or oil or something like that and they work good because they fit some of the money attributes they were scarce right but the problem is
as I already said the the the value or not the value but the supply the quantity of those Commodities was changing all the time there's no such thing as a constant but there is today and so I believe that Bitcoin is the first asset that we have that has a constant there's 21 million there won't be anymore and I believe this is is the new hurdle rate that all assets will be measured against I've been talking about this for a while if you if you've been watching my videos you should already understand this and that
the hurdle rate is the rate that we have to beat so right now the US monetary Supply is expanding between 10 to 16% a year depending on what measurement you're looking at so for example the FED balance sheet has been averaging about a 16% growth year-over-year for the last four years that's the hurdle rate that means I don't have to beat inflation at 3% to keep ahead of inflation the real number have to be is 16% now there's not a lot of assets that do that the S&P 500 hasn't been doing that over the 4-year
period neither the NASDAQ has barely been keeping up whereas bitcoin's been doing about 50 to 60% and I believe that's the new hurdle rate the reason why one it's beating it from a return but it's but it's bigger than that it's what deep seeka showed us right here it's that any of these yard sticks can change and any of these things are susceptible to disruption but you see with Bitcoin there is no disruption that's there there's no way to disrupt that technology sure you could talk about Quantum Computing in 15 years from now that's already
a known thing there's already fixes being in place for that um one two it can't be changed so like all the other cryptocurrencies they have governance and they can vote on things and they can change things Bitcoin doesn't change uh it can't be debased you can't just print more currency to debase it and so I believe for all of those reasons what we're going to see is a massive paradigm shift and this is what the world's already seeing as a matter of fact at the time of this recording I saw today another major Sovereign Central
Bank saying they want to add Bitcoin to the balance sheet the world is seeing this right here and there's going to be a massive shift and so really the trifecta it's not just Bitcoin the trifecta in this new paradigm in this new economy this new money economy is ai ai is the disruptive engine of growth AI is super important it's going to increase efficiency it's going to lower costs and it's going to create a massive amount of growth and abundance in AI but that's going to push things cheaper and cheaper and cheaper so that disrupts
the financial markets that we're using to invest in because we want them to go up in value so we use AI but then we use Bitcoin as as a key financial hedge so the money that we put into here goes up and up and up over time and holds that because it can't be disrupted it can't be debased like the US dollar the Yuan or the runmi then the third part of the trifecta is energy because the main thing that both Bitcoin and AI need is energy it's a crucial resource we can't live without energy
I couldn't be doing this you couldn't be watching this video without energy and so this is the trifecta in the new paradigm and this is what deep seek showed everybody this is what the world has seen at least as smart people and I'm trying to give it to you again this is not the news you can go read the news on your own let me know what you think about the new paradigm and the trifecta down in the comments down below as always uh give me likes if you like this video if you don't you
can give me a thumbs down that's okay tell me either way and that's what I got all right to your success I'm out
