💡DeepSeek Reveals Why Bitcoin is Not a Risk On Asset
DeepSeek AI shook up the world this week. They released a model that outperforms ChatGPT at a fraction of the cost, shattering the myth that China is "only" an industrial superpower and that no one can compete with U.S. software. The numbers? Staggering:
- Training cost: $100M → $5M
- GPUs needed: 100,000 → 2,000
- API costs: 95% cheaper
Aside from the geopolitical ramifications, the economic impact will be massive, if you're measuring it in the right unit of account…
Technology is deflationary, and contrary to what fiat economists told you, that's a good thing.
AI is ushering in an era of unprecedented productivity. And productivity is faster deflation. (s/o
@Jeff Booth )
But here's the problem: in a credit-based fiat system (what we have now), deflation cannot be allowed. The system is insolvent and has to keep expanding. Otherwise, it implodes.
Higher productivity->lower prices->lower GDP, which leads to rising debt-to-GDP ratios (we're already at ~350% globally), forcing central banks to print even more money to keep the system solvent.
And when the money printer goes brrr, no one sucks up liquidity better than #Bitcoin.
This is the beginning of the end of the correlation between Bitcoin and risk-on-tech assets.
Tech can be disrupted at any moment. The days of equity as a store of value are over.
This is Bitcoin's "risk-off" moment. Bitcoin is fixed, immutable, and cannot be disrupted.
We’re barreling into an era of exponential productivity growth, coupled with exponential monetary expansion.
Nothing stops this train. (s/o
@Lyn Alden)
Scarcity is where you want your wealth to be preserved. And nothing is more scarce, and less likely to be disrupted, than bitcoin.
What’s your unit of account?
