➡ DeepSeek, a new Chinese AI model, has disrupted the market by achieving better results at a fraction of the cost of other models. This has caused a significant drop in the value of tech stocks like Nvidia, as DeepSeek requires fewer resources, challenging previous growth assumptions. The rapid advancement of technology is forcing investors to reconsider their strategies and where to invest their wealth. This shift in the market is a wake-up call, highlighting potential security flaws and the need for increased competitiveness.
➡ The article discusses the potential of AI and Bitcoin in the future economy. It suggests that AI can disrupt financial markets by making things cheaper, while Bitcoin can serve as a stable store of value that can’t be easily disrupted or devalued. The article also highlights the importance of energy as a crucial resource for both AI and Bitcoin. It concludes by predicting a paradigm shift towards these three elements – AI, Bitcoin, and energy – in the new economy.

Is everything we’ve been told about the markets a flat-out lie? Well, that’s the question that DeepSeek just threw at Wall Street, sending high-flying stocks like Nvidia into freefall. 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 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.

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 DeepSeek 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 DeepSeek, but really, this isn’t about DeepSeek at all. All right, this is what DeepSeek 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 DeepSeek. If you want the news, there’s plenty of new sites out there.

There’s plenty of people on YouTube just regurgitated in the news headlines and then 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 DeepSeek 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 in iTunes store.

So it’s been one of the most downloaded apps out there. You 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 in-depth 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 OpenAI and the other LLMs have done, Gemini and Cloud, et cetera.

Not the same thing. They achieved better things, but at a fraction of the cost, at like a 10th 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 you have to feed it all the data. What they did is they created a way that it can learn on its own. There’s in-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.

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 was a wake-up call. And so this exposed a lot of things in the market, a couple things. Number one, it exposed, again, the U.S. 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 U.S. to be more competitive, like, oh, shoot, we thought we were winning the race. We’re not winning the race. There’s people that are 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 DeepSeek is.

Now, what happened? So basically, as it came out, Nvidia, one of the best performing stocks, or maybe actually the best performing stock in the market, plunged $600 billion. That was about 17% 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 timeframe 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. So you don’t see gaps on anywhere like this. There’s 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 do is look at the markets, and we see that in the last five months.

And they also said they said they came down in a short period, and they said they came down in a short period, and they didn’t mean that, and they didn’t mean they were good. And so it’s got some high growth, and it just. On the other hand, they’re just beginning to think that they are going to start getting higher. And then we see this gap. We see this gap there. But obviously, we could really be out of control that direction. And if we 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 one tenth 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. Because if deep deep seek was able to do something like this, that brings the 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, 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, well, how much capital will flow in? How much come out? 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 spent 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 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, Nvidia fell 17%. 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 clod, 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 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 moat if deep seat can just come out for a 10th 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 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 gold, we can put into bonds, real estate, equities, things like that. And typically we use equities for that, or store in 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 deep seek 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 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 yardstick for 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 Yuan, it shows me another. If I measure it in Bolivar 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, 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 and 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 Yuan, or whatever.

You get that. So how do we measure our wealth? Measuring the NASDAQ in US dollars, but the US dollars being debased. So we have a problem. Now, Ludwig von Mises, 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 money. We needed the 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. 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 sustain 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 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’re, if you’ve been watching my videos, you already 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 to 16%. Now there’s not a lot of assets that do that. The S&P 500 hasn’t been doing that over the four year period. Neither the NASDAQ has barely been keeping up. Whereas Bitcoin has been doing about 50 to 60%. 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. That’s what Deepseeker showed us right here. It’s that any of these yardsticks 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. 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. 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 is 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 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 renminbi.

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 doing this, you couldn’t be doing this. 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 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 in the comments down below. As always, give me likes if you like this video, if you don’t, you know, we thumbs down. That’s okay. Tell me either way. And that’s what I got. All right, to your success. [tr:trw].

See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.