Is everything we've been told about the markets a flat out lie. Well that's the question that deep Seek just through at Wall Street, sending high flying stocks like in Vidia into free fall. But more importantly, it shattered the illusion of business as usual and enforced investors everywhere to rethink some very important questions like what's going on under the hood at 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 in Vidia, 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. Now 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 twelve years in venture capital. I have a leadership role at a bigcoin 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 seak at all. All right, this is what deep Seak 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, 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 just regurgitating the news headlines and then give you all the details about that.
You can get it on your own. I want to give you the insights that are actionable for us to use. Okay, but let's understand what deep seak is for a minute from a high level. So first of all, it's a new Chinese LLM, a large language model and AI that was just released. It's basically an open source AI version that just came out. All 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 TikTok and basically blocked Chinese access to that, then China just opened up a large language model, which now everybody will give their most sensitive and most
information to and they'll have that. That's all different conversation, but really what Deepseek is is yes, an AI model, but what it changed, the paradigm shift and what it exposed is that they were able to achieve the same thing that open ai and the other llms have done Gemini and Cloud et cetera. Not the same thing. They've achieved better things, but at a fraction of the cost, at like a tenth of the cost. And they did
this by making their training way cheaper. And I want to get into all the details of how they do this. Rather than like a large LLM where it's had you have to feed it all the data, what they did is they created a way that it can learn on
its own information. I'm not going to get into that, but it was a way cheaper way, so instead of taking one hundred and fifty billion to train, they got it done on just a couple 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 in video makes all the GPU used 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 was a wake up call and so this exposed a lot of things in the market. A couple of things. Number One, it exposed 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 fire under the US to be more competitive, like, oh, shoot, we thought we were winning the race. We're not winning
the race. There's people that may way more advanced. We better get with it. And then again, the wake up 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 in video, one of the best performing stocks or maybe actually the best performing stock in the market plunged six hundred billion dollars now was about seventeen percent of its value. It was the single largest drop in a day in its history. It was a big deal. 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 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 gap downs. You don't see
gaps on anywhere like this. There's the 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 in video the most? There was other stocks,
we'll get into that. Why and video the most well, because in Vidia makes the chips for the AI, right, And so basically what the stock is, the PE 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 demand for their chips, their GPUs to continue to go
up linearly at least, if not exponentially like that. But what we just found, how overnight all these assumptions are wrong because now what Deepsek was able to do was provide something better than what we had before with one tenth of the resources. And so now everything that we thought, like in Video's growth is going to be like this, And we're like, well, wait a minute, no, it's not. Because if Deepseak was able to do something like this,
that brings their growth down like this. But what if what if deep Seak too, 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. A small business owner, are you buried in all types of work keeping you from the real thing that makes you money. Well that's
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their llms. That's how much we're 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, well, how much capital will flow in? How much how much do we think each company can capture from that will be the future valuation so we can invest. Right, So we thought, well, if they spend one hundred and fifty seven 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 three percent. Now, the NASDAK is an index, right, so it represents sort of all the tech stocks that are out there. So you might go, well, you know, I mean, in VIDFL seventeen percent, but the Nasdaq only fell three percent, So maybe y'all
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 Lama and Xai and now Deepseek, 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 accrue on the base layer, the value actually accrues on the narrow applications on the brands on
top of it. And so I still think there's tremendous growth potential being built all around here. But what we think about the base layers down here, there really is no mode. If deep Seak 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 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 leftover. Where do we save that? That's our store, that's our value. Where do we save that so we can put that into goal We can 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, we don't 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 unknown 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, we 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 China releases something like d seek that's better. Would the money flow from the nasdak over to the Chinese stock market? Or what if the US This isn't really hypothetical. What if 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 new index, but it's denominated in the OS 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 measured it in boulevard shows me something different. Or if I measure it in oil or oranges or rice or gold, and so it depends on what yardstick 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, that they didn't have a measuring tape, they had bungee cords. How could you build
a house? How could you organize that? How can you organize an economy in a market when everybody has different measuring tapes. The supply of dollars changes every day, the supply of oil changes every day, the supply of on or whatever. You get that, So how do we measure our wealth? I'm measuring in the Nasdaq and US dollars, but the US dollars being debased, so we have a problem now. Ludwig gun misis one of my favorite economists
from the Austrian school of economics. He said that in the world of economics, there's no such thing as a constant. So all throughout history commodities have been sort 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 value or not the value, but the supply the quantity of
those commodities was changing all the time. There's no sustaining as a consistant, but there is today, and so I believe that bitcoin is the first asset that we have that has a constant There's twenty one million, there won't be any more. And I believe this is the new hurdle rate that all assets will be measured against. I've been talking about this for a while. If you've been watching my videos, you surety 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 ten to sixteen percent a year, depending on what measurement you're looking at. So, for example, the Fed balance sheet has been averaging about a sixteen percent growth year over year for the last four years. That's the hurdle rate. That means I don't have to beat inflation at three percent to keep ahead of inflation. The real number have to beat is sixteen percent. Now, there's not a lot
of assets that do that. The S and P five hundred hasn't been doing that over the four year period, neither the NASDAK has barely been keeping up, whereas bitcoin's been doing about fifty to sixty percent. And I believe that's the new hurdle rate, the reason why one it's beating it from return. But it's bigger than that. It's what Deepseeak has showed us right here. It's that any of these yardsticks can change, and any of these things are susceptible to disruption. We see with bitcoin there is
no disruption that's there. There's no way to disrupt that technology. Sure, you can talk about quantum computing in fifteen years from now. That's already a known thing. There's already fixes being in place for that. Two, it can't be changed. So like all the other cryptocurrens, they have governance and they can vote on things, and they can change things. Bitcoin doesn't change. 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 seen. 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 cost, 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 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 or the yuan or the ruin. Mby 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 Deepseat showed everybody. This is what the world has seen, at least the 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 the comments down below. As always, give me likes if you like this video. If you don't eat what something's down, that's okay. Tell
me either way. And that's what I got. All right, to your success. I'm out.