Latest / The Paul Barron Crypto Show / Solana Just Got Insanely Faster!🚀China’s "Cheap & Good" Strategy

Transcript

Solana Just Got Insanely Faster!🚀China’s "Cheap & Good" Strategy · The Paul Barron Crypto Show

• 0:00
  Speaker 1: China is all in on AI, and it may not
• 0:02
  Speaker 1: be on the blockchain that you expect. Today, we'll break
• 0:04
  Speaker 1: it all down for you because there are some big
• 0:06
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• 0:46
  Speaker 1: it out. Tell them we sent you. Let's just open
• 0:48
  Speaker 1: up with this right here. And that is the China
• 0:50
  Speaker 1: GDP growth now is beating expectations.
• 0:53
  Speaker 2: This is something that has.
• 0:54
  Speaker 1: Been warned by many analysts for quite some time is
• 0:57
  Speaker 1: that China is pulling ahead. There's a few points that
• 1:00
  Speaker 1: I want to break down here because the Chinese stock
• 1:02
  Speaker 1: market now traded for red for 10 consecutive weeks.
• 1:06
  Speaker 2: Why is that happening?
• 1:07
  Speaker 1: With everything that's going on and what we're seeing in
• 1:11
  Speaker 1: both AI and especially in the chip business, why are
• 1:13
  Speaker 1: we seeing this happen right now?
• 1:14
  Speaker 2: That's a question. Here's the point.
• 1:17
  Speaker 1: Company expects net profit between 131 billion. This is talking
• 1:20
  Speaker 1: about CXMT. Yuan, that's basically a net loss of 5.2
• 1:25
  Speaker 1: billion yuan a year earlier. So basically, they're doing better.
• 1:30
  Speaker 1: Why are we seeing these kind of performances? And when
• 1:32
  Speaker 1: you look at the stocks of some of these Chinese companies,
• 1:34
  Speaker 1: we'll go, first of all, let's look at all the chips.
• 1:36
  Speaker 1: We'll start with Micron right there, somewhat sideways and down.
• 1:40
  Speaker 1: There's SK Hynix, has been falling here recently. Samsung rebounded,
• 1:45
  Speaker 1: but this might be its bottom coming in. And there's
• 1:47
  Speaker 1: CXMT continuing. If you look at this, literally is almost
• 1:51
  Speaker 1: at closing in.
• 1:52
  Speaker 2: On IPO prices.
• 1:55
  Speaker 1: So this points in to two things. You've got one,
• 1:58
  Speaker 1: acceleration happening here in the U.S. with SpaceX earnings and
• 2:01
  Speaker 1: other things. You've got factors of the rest of the
• 2:03
  Speaker 1: market that is starting to push out. And even Elon
• 2:06
  Speaker 1: starting to help support the semiconductors. He's talking about Micron,
• 2:10
  Speaker 1: who has been holding their prices and not gouging, which
• 2:13
  Speaker 1: is another big advantage for Micron, which obviously caused a
• 2:17
  Speaker 1: little bit of a move on Micron. But if you
• 2:19
  Speaker 1: look at the chips, prices, especially in the DDR. For
• 2:23
  Speaker 1: you guys that don't know what this is, this is
• 2:26
  Speaker 1: the type of chip that goes in the most advanced
• 2:28
  Speaker 1: systems out there. And this even goes into computers that
• 2:30
  Speaker 1: you might be buying at Best Buy or Micron Center.
• 2:33
  Speaker 1: This is exactly the kind of equipment that's being used
• 2:36
  Speaker 1: mostly for the GPUs and the systems that are running
• 2:39
  Speaker 1: AI today. There's no slowing down on this. So I
• 2:42
  Speaker 1: don't see any relief in sight, at least not anytime soon.
• 2:46
  Speaker 1: We should be seeing more of a pump here than
• 2:48
  Speaker 1: what we have been in recent times. If you look
• 2:50
  Speaker 1: at China also moving in on the EV landscape, right here,
• 2:55
  Speaker 1: they are absolutely surrounding Tesla. If you look at the
• 2:59
  Speaker 1: 2020 version of where BYD was versus the 2025 version
• 3:04
  Speaker 1: of where BYD is now, big deal moving forward. BYD,
• 3:08
  Speaker 1: of course, now, there's the headline, has already lapped Tesla.
• 3:12
  Speaker 1: Now it says its Toyota is going to be its
• 3:14
  Speaker 1: next target. And they're saying that they can do that
• 3:16
  Speaker 1: in five years. Toyota being one of the biggest, if
• 3:19
  Speaker 1: not the baddest carmaker out there. And now BYD saying that, no,
• 3:24
  Speaker 1: we think we're going to do it. I want to
• 3:25
  Speaker 1: go to a clip real quick because this will get
• 3:27
  Speaker 1: into the overall strategy around China's AI and what they
• 3:32
  Speaker 1: think it needs to do.
• 3:34
  Speaker 2: Take a look.
• 3:35
  Speaker 1: This deep seek update, does it tell us anything new
• 3:39
  Speaker 1: about the broader market? ability of China here?
• 3:42
  Speaker 3: It tells us that they can continue to innovate on
• 3:45
  Speaker 3: that Pareto efficient frontier, right? So cheap and good is
• 3:49
  Speaker 3: the quick summary, right? They continue to... Cheap but not
• 3:51
  Speaker 3: the best. Yeah, exactly. They have no intention of trying
• 3:53
  Speaker 3: to be the best from what it looks like, right?
• 3:55
  Speaker 3: We haven't heard from a Chinese model that is trying
• 3:58
  Speaker 3: to be number one. They want to be on that frontier,
• 4:01
  Speaker 3: that efficient frontier, and they want to train and run
• 4:04
  Speaker 3: those models without using top tier compute. So that is
• 4:08
  Speaker 3: a challenge to the broader theme of the AI compute
• 4:11
  Speaker 3: structure as well, because these Chinese models continue to be
• 4:14
  Speaker 3: quite good and they don't need top of the line
• 4:17
  Speaker 3: computing power to work. The part that is missing is
• 4:20
  Speaker 3: are they doing consumer AI? That was supposed to be
• 4:22
  Speaker 3: the Chinese kind of play, but there has been no
• 4:24
  Speaker 3: evidence of that thus far. Actually, leadership has gone to
• 4:28
  Speaker 3: the likes of Meta and Muse.
• 4:29
  Speaker 1: So that's a good point because they start to lean
• 4:32
  Speaker 1: into retail a little bit of where this might be
• 4:35
  Speaker 1: in a very near time. And if you consider how
• 4:40
  Speaker 1: we're going to see blockchain integrate into this. All right,
• 4:42
  Speaker 1: so here is another support in that topic. And that,
• 4:46
  Speaker 1: of course, this is a company that is a Solana
• 4:49
  Speaker 1: company that is operating in China. They think this could
• 4:52
  Speaker 1: be triggering another cycle. And, of course, Solana, this is
• 4:55
  Speaker 1: one I've talked about quite a bit on X, is
• 4:57
  Speaker 1: that this could be the one that leads us out,
• 4:58
  Speaker 1: especially when you look at the transaction play that Appenglow
• 5:01
  Speaker 1: is going to be able to do now. Coinbase also
• 5:05
  Speaker 1: put up a warning flag because they said, Coinbase came in.
• 5:09
  Speaker 2: Remember, this happened back in July.
• 5:12
  Speaker 1: And what they did was they made it easier for
• 5:15
  Speaker 1: Coinbase to get adopted there and accepted in China. And
• 5:19
  Speaker 1: this changed things because it put Brian Armstrong kind of
• 5:22
  Speaker 1: on the watch list of saying, we need to watch
• 5:24
  Speaker 1: out because China might be pulling ahead. The synergy of
• 5:27
  Speaker 1: blockchain and AI. And this is the thing that I
• 5:29
  Speaker 1: think is the natural fit. And what he was getting
• 5:31
  Speaker 1: at was that China is pulling ahead in being able
• 5:35
  Speaker 1: to achieve that. When you think about the blockchains that
• 5:38
  Speaker 1: are going to potentially be there, well, you have to
• 5:40
  Speaker 1: look at Solana. Solana, of course, entered into China and
• 5:45
  Speaker 1: everybody was astonished that this happened.
• 5:47
  Speaker 2: They actually took over the Citibank building.
• 5:49
  Speaker 1: And one of the reasons that they were able to
• 5:51
  Speaker 1: do this was they could not have any mention of
• 5:54
  Speaker 1: token or talk about crypto. It was all about accommodating
• 5:58
  Speaker 1: and dealing with getting to the AI developers. And that
• 6:01
  Speaker 1: was the point that I think AI and Solana have
• 6:04
  Speaker 1: now connected.
• 6:05
  Speaker 2: Let's go to the chart real quick.
• 6:07
  Speaker 1: You've got Solana hovering at that 100 mark, 103 after
• 6:11
  Speaker 1: the last few days. And of course, has it bottomed
• 6:14
  Speaker 1: is the question. And that is what I'm asking right now.
• 6:18
  Speaker 1: Let me know in the comments if you guys are
• 6:19
  Speaker 1: trading on Solana right now. Are you buying and DCAing
• 6:23
  Speaker 1: in or do you think it might have another move down?
• 6:26
  Speaker 2: Let me know.
• 6:27
  Speaker 1: Let's get into one other thing because this is the
• 6:29
  Speaker 1: big news. And that, of course, is Solana's major infrastructure
• 6:32
  Speaker 1: upgrade today.
• 6:33
  Speaker 2: Happened today. Appenglow is now live.
• 6:35
  Speaker 1: It targets a 150 millisecond transaction finality. This is down
• 6:42
  Speaker 1: from six seconds, which is basically 40 times faster. Huge
• 6:47
  Speaker 1: opportunity here in being able to get into the payments
• 6:50
  Speaker 1: sector and many other, I think, areas where transactions are paramount.
• 6:55
  Speaker 1: So when you consider where AI integrates into blockchain, this
• 6:59
  Speaker 1: may be the day of when all of this happens
• 7:02
  Speaker 1: because AI agents are going to need that kind of speed. Solana,
• 7:07
  Speaker 1: of course, giving you an example of it right there
• 7:09
  Speaker 1: with this new upgrade. Let me show you one other
• 7:12
  Speaker 1: thing here. This is something that I've always said eventually
• 7:15
  Speaker 1: will take place. Right now, MasterCard is processing 5.4 million
• 7:21
  Speaker 1: transactions per hour. That's 129 milliseconds per. This is basically
• 7:26
  Speaker 1: good enough. to go in and compete in this layer.
• 7:30
  Speaker 1: So one other thing to think about here, guys, is
• 7:32
  Speaker 1: not every chain is able to keep up with all
• 7:35
  Speaker 1: this demand and speed. XRP, of course, running in their
• 7:38
  Speaker 1: own problems. And this is an issue that occurred 15
• 7:41
  Speaker 1: hours ago, even at recording, still a problem. These things
• 7:45
  Speaker 1: need to change. And I think we've got to get
• 7:47
  Speaker 1: the message out there to all of these chains. We
• 7:50
  Speaker 1: are running behind. We've got to get started because the
• 7:54
  Speaker 1: agents are coming. And now it looks like China is, too.
• 8:03
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• 8:05
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• 8:09
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