Arthur Hayes crumbles the phenomenon of Deepseek. Bitmex’s well-known investor and ex-care suggests that there is greater complexity and uncertainty behind what is believed, behind the case of the China artificial intelligence startup (AI) that developed a large language model with limited resources, overcoming to Chatgpt to some extent and other American initiatives.
After the launch of Deepseek-R1, China disturbed global financial markets, including Bitcoin (BTC), as reported by cryptootics. That fact leads Hayes to analyze the overvaluation of the United States markets. He argues that the valuation of US actions today resembles the technological bubble of the year 2000, when the market was inflated by the rise of Internet and technology companies, and the crisis of 1929, known as Black Thursday, which marked the beginning of the great depression due to unbridled speculation. For Hayes, what happens today is unsustainable.
In itself, with his usual acute vision about events, Hayes Use the Deepseek case as a starting point to question established narratives about technological innovation and the global economy. He warns about the risks of overvaluation of financial markets and therefore believes that it is necessary to adopt a more critical and skeptical vision of official information and dominant trends.
He believes that US markets are overvalued and could experience a correction, dragging negative consequences for public finances, since it would reduce income from tax profits. Therefore, he suggests that the growing uncertainty about the global economy and geopolitical tensions They could lead to greater volatility in financial markets.
“If people begin to move away from US shares, where will taxes on capital gains come from?” Hayes questioned, hinting that a change in investment trends could cause a significant increase in the Fiscal deficit planned for 2028, from 3%to perhaps 7%, 8%, 9%or even 10%. This scenario, according to him, could represent one of the “three arrows” of Karen Besent’s economic policy, a former federal reserve, who is known for its three component strategy for economic growth, but with much more consequences severe than anticipated.
Deepseek Genuine propaganda or development?
Additionally, Hayes wonders why Deepseek did not arise from one of the large corporations, universities or startups financed by the Chinese government, suggesting that China’s innovation model will rarely align with this type of development.
Why didn’t Deepseek create a large Chinese company, a university or an emerging company financed by the local government that received hundreds of billions of yuan in government funds to avoid US high -end chip controls and obtain supremacy in intelligence in intelligence artificial?
Arthur Hayes, investor and CEO of Bitmex.
In this way, Hayes refers to the fact that Depseek’s success was achieved with relatively modest resourcesand probably without the direct intervention of the government. The analyst also suggests that the official history about this Chinese startup could be an excessive simplification and that there are hidden or not revealed aspects about its financing and development.
“If Deepseek were simply a propaganda tool of the Chinese Communist Party (PCCH), one would expect to see a greater participation of the State or large state -owned companies,” said Hayes. He stressed that Depseek’s origin seems more linked to a Hangzhou coverage fund, which is unusual given the skepticism of the PCCH towards coverage funds and the difficulty of operating in Western financial markets from China.
Global Economy: Storms on the high seas
His analysis suggests that Deepseek innovation could be leaving “wrong people,” according to Chinese standards. Suspects that all this skepticism towards China could lead to investors to question the current overvaluation of the market American, which is in a historical maximum of 230% of GDP.
In short, you have crumbles the case of Deepseek, while showing it as a simple technological achievement, but beyond this it uses it as a mirror to reflect the vulnerabilities of the global financial system, in particular US markets. Your critical analysis invites investors and observers to question the established narratives Already prepare for possible corrections in an inflated market, suggesting that true innovation can arise from unexpected places, with implications that go beyond technology.
The question that leaves in the air is whether the world is ready to face the crisis that could be derived from these revelations and if the global economy can adapt to a new order where uncertainty and criticism become the norm rather than the exception .
