If you haven't heard already deepseek is sending the markets into pure melt down for whatever reason. The idea of a strong AI in China then here in the USA is melting the faces of investors right now as they feel like they are falling behind. Today let's talk about what DeepSeek is, how you can use it yourself and is it really something to worry about.

DeepSeek

Deepseek is a AI platform coming out of China but one of the key elements of it at least they say is that it's open source allowing others to build on it. However I'll always question that and always think that any AI platform especially one out of China is a data mine collection for your data with zero privacy.

You can check out Deepseek yourself at DeepSeek.com

Right now there is a huge AI race going on and DeepSeek just came out of nowhere and is breaking everything putting USA platforms like ChatGPT looking like chumps.

Not only is DeepSeek better then these platforms but it also uses a lot less hardware to be able to do so. You see in the USA for some reason we always think more and more power instead of more power but kick in some efficiency as well once in a while.

Now what I do find cool about this is that most users will in fact say it is better and the tech side of it more efficient. So what does that man? Huge competition on the country level which means tons of money is about to flood into the AI sector in order to stay ahead.

The issue is however it underminds the USA based tech stocks and chat gpt etc like we have seen with what happened in the stock market.

This competition is very good though. You see AI to me felt rather lackluster and not really moving for the last two years since it's big day. Sure we got some updates but they where not powerful and grand they where just minor little tweaks and this is what happens when you're on top (or at least think you are) you get complacent (much like the USA in general has become for the last 10 or so years) and then you get a serious slap in the face wake up call that well you got some real competition on your hands now.

This change will most likely seem massive change from the top 7 blue chip stocks as they learn and build better and more efficient systems themselves but it will take time. This AI race however is what will lead to massive fast innovation now.

The Theory Of Money

The idea is that this AI race will spark deflation as things become more advanced, easier to make, less man power etc. Thus creating deflation and a sinking GDP which makes paying off debts harder which then makes the money printers print to increase inflation and thus Bitcoin and even some other crypto assets should absorb this as a market cap increases thus pushing the value of these tokens higher.

Of course that's speculation and how it "should" work but how it should work and what actully happens can often be two very different things.

Nvidia In Trouble

Nvidia once a powerhouse of AI chips could see deepseek ushering in an era of cheaper AI training and more efficient modules thus reducing the need and demand for massive GPU farms. Less demand of video cards that $2,000 5080 GPU well those prices might end up coming down a bit with this new advancement in AI.

Bitcoin Inflows

What we could see happen next and rather quickly (2 years) Is governments jumping on board with stock piling bitcoin which is only going to drive up demand. Right now these moves are looking very bullish for the bitcoin price.

This AI battle and crypto battle between countries could spark one of the largest heavy bull run and AI run that is going to melt our faces off.

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