Latest / The Paul Barron Crypto Show / Deepseek A.I. Crashes Crypto Market🔥Overhyped Panic?

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Deepseek A.I. Crashes Crypto Market🔥Overhyped Panic? · The Paul Barron Crypto Show

• 0:07
  Speaker 1: Crypto is on the move in a bad way as
• 0:09
  Speaker 1: well as the S and P five hundred will break
• 0:11
  Speaker 1: it all down for you and why AI is causing
• 0:13
  Speaker 1: all of this to happen. My name is smam Barah.
• 0:15
  Speaker 1: We'll come back into tech path. Let's get started. We
• 0:18
  Speaker 1: want to thank our sponsor and that is Coinbase. If
• 0:19
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• 0:21
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• 0:26
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• 0:29
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• 0:35
  Speaker 1: give you up to two hundred bucks in crypto to
• 0:37
  Speaker 1: get started and get rolling out there now. A lot
• 0:39
  Speaker 1: of people are saying, what is going on with the
• 0:41
  Speaker 1: markets right now? Well, AI is right now potentially the
• 0:46
  Speaker 1: one that is all to blame, and that is a
• 0:49
  Speaker 1: Chinese chapot called deep Seek that's sparking a market turmoil.
• 0:53
  Speaker 1: And many people are looking at this in comparison to
• 0:56
  Speaker 1: what we've seen around the Trump presidency of bitcoin falling
• 1:00
  Speaker 1: down one hundred k and I think under one hundred K,
• 1:02
  Speaker 1: and I think a lot of people have to kind
• 1:03
  Speaker 1: of consider the market in general of where not only
• 1:06
  Speaker 1: the S and P five hundred is. Remember that Bitcoin
• 1:09
  Speaker 1: is related heavily to the S and P five hundred,
• 1:12
  Speaker 1: and when you think about the S and P five hundred, well,
• 1:14
  Speaker 1: you have to think about the mag seven, primarily the
• 1:17
  Speaker 1: majors like Nvidia, and of course within that you look
• 1:20
  Speaker 1: at a couple of points that have been happening here
• 1:22
  Speaker 1: a lot of turbulines attributed to the rise of the
• 1:25
  Speaker 1: AI app Deep Seek claim the top spot on the
• 1:28
  Speaker 1: Apple App Store. This was interesting and with then next
• 1:32
  Speaker 1: Federal Reserve meeting approaching this week, by the way, we'll
• 1:35
  Speaker 1: have another FOMC, markets are also possibly cutting right before
• 1:39
  Speaker 1: the FMC meeting, which is coming up. A lot of
• 1:41
  Speaker 1: people worry that we are going to get a no change,
• 1:44
  Speaker 1: which most likely will be taking place other things that
• 1:47
  Speaker 1: are happening right now. If you take out what's going
• 1:50
  Speaker 1: on with some of the key tech stocks, everything else
• 1:53
  Speaker 1: seems to be somewhat on point. So very interesting that
• 1:57
  Speaker 1: this is affecting one of the strongest sectors in the
• 2:00
  Speaker 1: economy for the United States, and that is being the
• 2:03
  Speaker 1: tech market now. Of course, you look at this statement
• 2:06
  Speaker 1: here from Kobeec deep sea crushing US stocks Nazak hundred
• 2:09
  Speaker 1: one hundred or down one thousand points set for their
• 2:12
  Speaker 1: biggest drops in September of twenty two. Guys. That's all
• 2:16
  Speaker 1: the way back into pre pandemics. And of course in
• 2:19
  Speaker 1: Vidia is set to erase four hundred billion of market
• 2:22
  Speaker 1: cap today. This is the biggest one day lost in
• 2:24
  Speaker 1: stock history for in Vidia. So this is why I
• 2:28
  Speaker 1: think in Vidia AI is all tied into crypto, and
• 2:32
  Speaker 1: crypto of course, I think is going to be going
• 2:35
  Speaker 1: the way that AI technology goes. Now, there may be
• 2:38
  Speaker 1: a hidden you know, a hidden lining here, and I'll
• 2:41
  Speaker 1: get to that in a minute. That why it could
• 2:43
  Speaker 1: be affecting crypto maybe in a actual positive way going forward.
• 2:47
  Speaker 1: But I want to go to a couple of clips
• 2:48
  Speaker 1: here to kind of get you guys in the framework
• 2:50
  Speaker 1: of what's happening. This is a clip of the deep
• 2:53
  Speaker 1: Seek CEO talking about his cash pile of chips listening.
• 2:59
  Speaker 2: You know the Chinese these labs they have more h
• 3:02
  Speaker 2: one hundreds than people think, you know, and these are
• 3:05
  Speaker 2: the highest powered in video chips that they were not
• 3:07
  Speaker 2: supposed to have. Yes, My understanding is that is that
• 3:11
  Speaker 2: deep Zeek has about fifty thousand, h one hundreds, which
• 3:15
  Speaker 2: they can't talk about obviously because it is against the
• 3:17
  Speaker 2: export controls that the United States has put in place.
• 3:19
  Speaker 2: And I think it is true that, you know, I
• 3:21
  Speaker 2: think they have more chips than other people expect, but
• 3:23
  Speaker 2: also going to go forward basis, they are going to
• 3:25
  Speaker 2: be limited by the chip controls and the export controls
• 3:28
  Speaker 2: that we have in place.
• 3:29
  Speaker 1: All right, So two things there. One is the fact
• 3:32
  Speaker 1: that they have those chips. This is one thing that
• 3:35
  Speaker 1: I think we're starting to probably already see on the
• 3:37
  Speaker 1: national security level. Most likely we'll see a lot of
• 3:40
  Speaker 1: efforts by things like the CIA and others that will
• 3:43
  Speaker 1: probably be moving quickly into what's going on between Deep Seek,
• 3:46
  Speaker 1: a Chinese run company that is going head to head
• 3:49
  Speaker 1: with open Ai. After we just saw half a trillion
• 3:52
  Speaker 1: dollars committed to the AI space here in the United States.
• 3:56
  Speaker 1: So protecting this technology and our IP is probably paramount
• 4:00
  Speaker 1: on Trump's list. I want to go to a repic Henry.
• 4:03
  Speaker 1: He's talking about why this is so important. Take a look, what.
• 4:08
  Speaker 3: Do you make of this?
• 4:09
  Speaker 2: Just from a I don't have a national security perspective,
• 4:12
  Speaker 2: a technology US being ahead or behind.
• 4:15
  Speaker 1: Us our spot nick moment.
• 4:17
  Speaker 3: Well MARKA. Andreesen said this, but we don't know. We're
• 4:22
  Speaker 3: living in this moment where we don't know if this
• 4:24
  Speaker 3: is real, whether or not this is effectively screen scraping, right,
• 4:28
  Speaker 3: which is taking the best of our open source and
• 4:31
  Speaker 3: they're intelligence community using access to our closed source. Is
• 4:35
  Speaker 3: that a component of this build out we don't yet know.
• 4:39
  Speaker 3: We also don't yet understand fully the data transfer that's
• 4:42
  Speaker 3: happening with this new app. What we do know though,
• 4:48
  Speaker 3: and the fundamentals here may transferringing.
• 4:50
  Speaker 2: Are people's information at risk?
• 4:52
  Speaker 3: With going back to the yes government, is this a
• 4:55
  Speaker 3: more sophisticate TikTok? But what is devastating though is if
• 4:58
  Speaker 3: you have a new model that we requires less compute,
• 5:01
  Speaker 3: less chips means less power less infrastructure. This has a
• 5:05
  Speaker 3: massive ripple effect where faster, better and cheaper still wins,
• 5:09
  Speaker 3: no matter if it comes from a communist state or
• 5:12
  Speaker 3: from an open society. Look, it's probably good news over
• 5:14
  Speaker 3: the long haul, devastating perhaps for the companies that have
• 5:17
  Speaker 3: built up so much on this expectation, right, And if
• 5:20
  Speaker 3: you're a company like Microsoft or Apple, where you want
• 5:23
  Speaker 3: to build the best widget and you have capacity to
• 5:26
  Speaker 3: distribute it to your current customer base. This may be
• 5:29
  Speaker 3: a fantastic thing for them. But stepping back though, this
• 5:34
  Speaker 3: is so complicated. We are an open society with a
• 5:37
  Speaker 3: rule of law competing. It's a closed society with no
• 5:41
  Speaker 3: rule of law in China, and so we think the fundamentals,
• 5:43
  Speaker 3: I think the fundamentals of an open society and rule
• 5:46
  Speaker 3: of law make us so much better to adapt and change.
• 5:50
  Speaker 3: What they have just done with a closed society is
• 5:53
  Speaker 3: bring something that's open source, open society. It is such
• 5:57
  Speaker 3: a different, different outcome than anyone expected six months ago,
• 6:01
  Speaker 3: two years ago, five years ago from China.
• 6:04
  Speaker 1: All right, so there's a lot to unpack in what
• 6:07
  Speaker 1: Pat mcpatrick McHenry had to say. And this is one
• 6:09
  Speaker 1: of the guys that has been a champion for crypto.
• 6:12
  Speaker 1: He understands technology. So I don't think this is just
• 6:14
  Speaker 1: a talking head coming out of DC. This guy understands
• 6:16
  Speaker 1: where tech is going. There are a couple things to
• 6:19
  Speaker 1: look at here within the Chinese gummer. One is to
• 6:22
  Speaker 1: their point, are we seeing just a cheap fake coming
• 6:25
  Speaker 1: out of an open AI copycat or a mock of
• 6:28
  Speaker 1: a technology that's currently in place now or always seeing
• 6:33
  Speaker 1: a huge transition in technology. There's two theories you could
• 6:37
  Speaker 1: look at. Would the Chinese put this out if in
• 6:40
  Speaker 1: fact this was just so groundbreaking in terms of compute capability,
• 6:44
  Speaker 1: because remember what they're talking about. If you don't know
• 6:47
  Speaker 1: what deep seek is, think of it, of what it's
• 6:50
  Speaker 1: taken to build open AI, chat, GPT, and you look
• 6:53
  Speaker 1: at all the various open models that are out there
• 6:56
  Speaker 1: right now where there's Perplexity, Claude, many of the others
• 6:59
  Speaker 1: that have been build off of that, and do that
• 7:02
  Speaker 1: with one one hundredth of the resources, meaning you didn't
• 7:06
  Speaker 1: need as many people, not as much money, not as
• 7:07
  Speaker 1: much time, all those things. This would be a absolute
• 7:11
  Speaker 1: crater to what's happening in the AI space. Now, you
• 7:14
  Speaker 1: think about that, could AI and could what Chinese the
• 7:18
  Speaker 1: Chinese are doing right now be simply a little bit
• 7:22
  Speaker 1: of a psiop here running against what is one of
• 7:24
  Speaker 1: the fastest growing markets in the United States artificial intelligence.
• 7:28
  Speaker 1: So a lot of this is still playing out and
• 7:31
  Speaker 1: because of that, the question now, I think really relies
• 7:34
  Speaker 1: on how the government is going to be able to
• 7:36
  Speaker 1: deal with this, and I think Trump is going to
• 7:38
  Speaker 1: be the question mark here. So I want to go
• 7:40
  Speaker 1: to this next clip and see what you guys think.
• 7:42
  Speaker 1: Take a look.
• 7:43
  Speaker 3: There are two additional pieces here. One is US capacity
• 7:47
  Speaker 3: to ban things that they don't like out of regimes
• 7:50
  Speaker 3: they don't like. The president has broad authorities not just
• 7:53
  Speaker 3: on tariffs, but on export controls that are meaningful, powerful,
• 7:58
  Speaker 3: and are the death penal for firms. So would you
• 8:01
  Speaker 3: block this, Well, let's see, let's see what was actually
• 8:05
  Speaker 3: happening here. It could be blocked. And so the present's
• 8:08
  Speaker 3: capacity to take action here is massive against an app
• 8:13
  Speaker 3: or an adversary that he doesn't like.
• 8:16
  Speaker 1: All right, So they hit on some other things there
• 8:19
  Speaker 1: that I think are important, and that is the technology advancement. Remember,
• 8:22
  Speaker 1: the United States has pretty much been the country that's
• 8:25
  Speaker 1: put technology at the forefront of the global communities, whether
• 8:29
  Speaker 1: you look at mobile technology, web technology, what we've seen
• 8:32
  Speaker 1: even within the crypto community, what we're going to see
• 8:35
  Speaker 1: coming out of the crypto community going forward, and this
• 8:38
  Speaker 1: includes things like deep in AI agents, what we've seen
• 8:41
  Speaker 1: in that scenario, and then of course what we will
• 8:44
  Speaker 1: see in the future of open source AI. So all
• 8:48
  Speaker 1: of this still up in the air. As to whether
• 8:50
  Speaker 1: or not China has done a major breakthrough, And I
• 8:52
  Speaker 1: think that's the question mark that everybody's asking right now.
• 8:56
  Speaker 1: Is this real? Is this going to have the effect
• 8:58
  Speaker 1: that it could have? Polyopotia puts it out right here
• 9:01
  Speaker 1: if you no longer need in video GPUs, because they're
• 9:04
  Speaker 1: talking about deep seek being able to basically decentralize, much
• 9:09
  Speaker 1: like what Render can do with decentralizing compute power. This
• 9:13
  Speaker 1: being able to do that for the AI community. So
• 9:15
  Speaker 1: if you no longer need that, then the idea of
• 9:19
  Speaker 1: a decentralized physical infrastructure network and the strategy around that
• 9:23
  Speaker 1: could be huge, and it's very viable as of yesterday
• 9:27
  Speaker 1: if this in fact is true. So there's a lot
• 9:30
  Speaker 1: still yet to be done here, and of course everybody's
• 9:32
  Speaker 1: looking at whether or not Trump will reshape how this
• 9:36
  Speaker 1: could go forward, especially around the tariffs and especially as
• 9:40
  Speaker 1: it pertains to China. A couple of points that they
• 9:43
  Speaker 1: hit on right here the industry's dependence on Chinese manufactured
• 9:47
  Speaker 1: ACIC equipment, and this is thing like bitmin and micro bt.
• 9:50
  Speaker 1: This is of course bitcoin miners. The reality of a
• 9:52
  Speaker 1: sixty percent tarif would dramatically increase the both the established
• 9:56
  Speaker 1: and maintaining mining operations in the US. This would be
• 9:58
  Speaker 1: a problem for bitcoins rate. And the other thing that
• 10:01
  Speaker 1: you got to look at is the mid sized mining
• 10:03
  Speaker 1: operation would Chase would face about a two to three
• 10:05
  Speaker 1: million dollar additional startup costs, So it's going to eliminate
• 10:08
  Speaker 1: new miners coming in. So there's a big problem of
• 10:11
  Speaker 1: how this does affect crypto in general because of the
• 10:14
  Speaker 1: fact that it has such an impedance on what's happening
• 10:17
  Speaker 1: with bitcoins. So all of this is very interesting right
• 10:20
  Speaker 1: now as we move forward. AI tokens of course, took
• 10:23
  Speaker 1: the hardest hit. They started seeing a lot of tumbling
• 10:26
  Speaker 1: over the weekend once they hit the market, and I
• 10:30
  Speaker 1: think what we're looking at right now, remember company says
• 10:33
  Speaker 1: it was developed at a fraction of the costs against
• 10:35
  Speaker 1: its big competitor in Vidious. Stock took a thirteen percent tumble.
• 10:38
  Speaker 1: I think this is going to be the one that
• 10:39
  Speaker 1: will be interesting to see how this plays out. Agents
• 10:42
  Speaker 1: twenty three percent down, Meme Coins, AI meme coins twenty
• 10:45
  Speaker 1: four percent down, AI Agent Launchpad tokens thirty eight percent down.
• 10:50
  Speaker 1: That's projects like virtual protocol all being hit going forward
• 10:54
  Speaker 1: at forty two percent down, So there is a tideswell
• 10:58
  Speaker 1: that is being that's really happening right now. And here's
• 11:02
  Speaker 1: the thing that is important to me, and that is
• 11:05
  Speaker 1: is this technology so delicate that something like this that
• 11:10
  Speaker 1: comes out of a major like China with maybe some
• 11:13
  Speaker 1: new technology.
• 11:15
  Speaker 2: Are we that.
• 11:16
  Speaker 1: Early in other words of we still don't know what
• 11:19
  Speaker 1: we don't know around where AI could be going and
• 11:22
  Speaker 1: how fast it can get there? I think is the
• 11:24
  Speaker 1: question mark now. The thing to look at this as
• 11:27
  Speaker 1: a good thing is that AI being cheaper. I don't
• 11:31
  Speaker 1: necessarily think you would look at this as a bad
• 11:32
  Speaker 1: thing because I do believe that as we see this
• 11:35
  Speaker 1: drive down, because competition always creates innovation, and if that
• 11:39
  Speaker 1: is going to be the case here in the US,
• 11:40
  Speaker 1: then I would put the US against anybody in the
• 11:42
  Speaker 1: world of being able to go faster, cheaper and harder
• 11:45
  Speaker 1: and better in terms of quality, because I think that's
• 11:48
  Speaker 1: the big thing going forward right now. But it's like
• 11:51
  Speaker 1: saying Solana made transaction cheaper, so it's bad for Crypto. No,
• 11:54
  Speaker 1: that wasn't the case. Solana has been able to really
• 11:57
  Speaker 1: expound on the opportunity of what crypto has been to
• 12:00
  Speaker 1: do because of cheaper transactions, So that's been good overall.
• 12:04
  Speaker 1: Arthur Hayes had an interesting take. What if the rise
• 12:06
  Speaker 1: of the deep seat causes global investors to question the
• 12:09
  Speaker 1: US exceptionalism. What if they question that they are overweight
• 12:12
  Speaker 1: US tech versus the world. This goes back to the
• 12:16
  Speaker 1: theory that we could see this as a siop and mean,
• 12:18
  Speaker 1: there's a lot of things that the Chinese could be going,
• 12:20
  Speaker 1: what's the one strength of the United States tech, what's
• 12:24
  Speaker 1: the strength underneath that AI? What's the strength around that crypto?
• 12:30
  Speaker 1: All of those things being hit with one fatal move
• 12:33
  Speaker 1: over the weekend. So interesting stuff, guys. I think we're
• 12:36
  Speaker 1: going to be watching this very closely. Don't forget that
• 12:39
  Speaker 1: Virtuals expanded to Solana over the weekend as well, So
• 12:43
  Speaker 1: this was a big deal in terms of expanding the
• 12:46
  Speaker 1: AI ecosystem under virtuals, remember that being over on base.
• 12:50
  Speaker 1: I think this is still a very viable industry in
• 12:53
  Speaker 1: terms of the category. When I say category meaning AI
• 12:58
  Speaker 1: agents continuing to advance on them because this is only
• 13:00
  Speaker 1: going to get better and faster with a lot of
• 13:03
  Speaker 1: the AI tools that are out there. But we are
• 13:04
  Speaker 1: going to be watching this tech very quickly. One thing though,
• 13:07
  Speaker 1: that everybody's asking about the markets in general is there's
• 13:10
  Speaker 1: just so many tokens hitting the market. In many cases,
• 13:12
  Speaker 1: AI is being used to generate these. Balshoon has hit
• 13:15
  Speaker 1: it right here, one million new tokens a week and
• 13:18
  Speaker 1: here I thought fifteen ETF launches was hard to keep up.
• 13:20
  Speaker 1: Sounds like a nightmare. This was talking about Brian Armstrong's
• 13:23
  Speaker 1: tweet over the weekend where he says we need to
• 13:25
  Speaker 1: rethink our listening process at coinbase, given there are a
• 13:28
  Speaker 1: million tokens being created. I think it boils down to
• 13:31
  Speaker 1: is you're going to have to develop it some sort
• 13:34
  Speaker 1: a way to develop quality out of these, much like
• 13:37
  Speaker 1: the Internet did in the early stages. There were many
• 13:41
  Speaker 1: many websites being created in the early stages back in
• 13:44
  Speaker 1: between mid nineties to early two thousands, where there was
• 13:47
  Speaker 1: just as many scams, crazy things, hair brain ideas that
• 13:52
  Speaker 1: were coming out of just a regular Internet website. And
• 13:56
  Speaker 1: I think that's the case is what we're dealing with
• 13:58
  Speaker 1: right now with crypto. It's not going to be long
• 14:00
  Speaker 1: before we have some sort of system in place that
• 14:03
  Speaker 1: authenticates some of this. Now to what level, we we
• 14:06
  Speaker 1: don't know yet, but I think there's a lot happening.
• 14:08
  Speaker 1: Point being, we got a lot of stuff ahead of
• 14:11
  Speaker 1: us this year for sure. Mark Cuban weighs in on this.
• 14:13
  Speaker 1: He says, hey, that'd be a huge mistake. There's a
• 14:16
  Speaker 1: million tokens a week because there's no registration. We just
• 14:18
  Speaker 1: need a simple registration that's tailored for meme coins. There
• 14:23
  Speaker 1: are enough KYC tools that can make it same day approval,
• 14:26
  Speaker 1: no fees, all that kind of stuff. That could be
• 14:29
  Speaker 1: a factor here going forward, especially if you're selling into
• 14:31
  Speaker 1: the US market, the US market being one of the
• 14:33
  Speaker 1: bigger markets that could take advantage of this last up
• 14:36
  Speaker 1: if you've got a couple other things happening. And of
• 14:38
  Speaker 1: course Meta's earnings are coming in this week. Most likely
• 14:41
  Speaker 1: we'll see big numbers coming in obviously from the holiday numbers,
• 14:44
  Speaker 1: and I think that in itself still leans into one
• 14:47
  Speaker 1: of the top stocks that will affect the S and
• 14:49
  Speaker 1: P bad timing here, I think for Meta if we
• 14:52
  Speaker 1: continue to see this affecting the markets in general, and
• 14:55
  Speaker 1: it also depends on how the FED plays this over
• 14:58
  Speaker 1: the next week as well. So another one, Elon Musk,
• 15:02
  Speaker 1: has initiated talks about using blockchain in is US government
• 15:05
  Speaker 1: efficiency efforts in doze. So if we see blockchain coming
• 15:08
  Speaker 1: in for the transparency, there's a couple of projects out
• 15:12
  Speaker 1: there that could be dead on for this. Two that
• 15:15
  Speaker 1: we like very much are Avalanche and the other is XRP.
• 15:19
  Speaker 1: Both of these ecosystems could be big winners in things
• 15:23
  Speaker 1: around doze and the efficiency side of the government, the
• 15:26
  Speaker 1: US government. So Doge founder, this is the crypto Doge
• 15:30
  Speaker 1: founder is pitching Avalanche to Elon, So we'll see how
• 15:34
  Speaker 1: that goes. Again, this is the whole idea of transparency.
• 15:37
  Speaker 1: But if you understand the ability of scaling, the ability
• 15:40
  Speaker 1: of what Avalanche has been able to do, the l
• 15:42
  Speaker 1: one think of everybody having their own private blockchain and
• 15:46
  Speaker 1: in government that could be a big deal. So Avalanche
• 15:48
  Speaker 1: could be on the lead for what we might see
• 15:50
  Speaker 1: coming out of the Doge the other Doze in government
• 15:55
  Speaker 1: around efficiency. We're going to be breaking down all week.
• 15:58
  Speaker 1: We'll have tons of stuff where you've got rate interviews
• 16:00
  Speaker 1: this week. Make sure to subscribe to the channel if
• 16:02
  Speaker 1: you are not following this out there on x Mine
• 16:06
  Speaker 1: is very simple. It's just at Paul Baron. I'll catch
• 16:08
  Speaker 1: you next time right here. A tech bath