Solana Just Got Insanely Faster!🚀China’s "Cheap & Good" Strategy

0:00 China is all in on AI, and it may not be on the blockchain that you expect. Today, we'll break it all down for you because there are some big news happening. I want to thank our sponsor today, and that is Tangim, where you guys can get into full self custody.

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0:34 It's going to give you a 10% discount. And they also have several offers from time to time. So always check what's going on over there on the website. This is the self-custody to use. So make sure and check it out. Tell them we sent you. Let's just open up with this right here. And that is the China GDP growth now is beating expectations.

0:53 This is something that has.

0:54 Been warned by many analysts for quite some time is that China is pulling ahead. There's a few points that I want to break down here because the Chinese stock market now traded for red for 10 consecutive weeks.

1:06 Why is that happening?

1:07 With everything that's going on and what we're seeing in both AI and especially in the chip business, why are we seeing this happen right now?

1:14 That's a question. Here's the point.

1:17 Company expects net profit between 131 billion. This is talking about CXMT. Yuan, that's basically a net loss of 5.2 billion yuan a year earlier. So basically, they're doing better. Why are we seeing these kind of performances? And when you look at the stocks of some of these Chinese companies, we'll go, first of all, let's look at all the chips.

1:36 We'll start with Micron right there, somewhat sideways and down. There's SK Hynix, has been falling here recently. Samsung rebounded, but this might be its bottom coming in. And there's CXMT continuing. If you look at this, literally is almost at closing in.

1:52 On IPO prices.

1:55 So this points in to two things. You've got one, acceleration happening here in the U.S. with SpaceX earnings and other things. You've got factors of the rest of the market that is starting to push out. And even Elon starting to help support the semiconductors. He's talking about Micron, who has been holding their prices and not gouging, which is another big advantage for Micron, which obviously caused a little bit of a move on Micron. But if you look at the chips, prices, especially in the DDR. For you guys that don't know what this is, this is the type of chip that goes in the most advanced systems out there. And this even goes into computers that you might be buying at Best Buy or Micron Center.

2:33 This is exactly the kind of equipment that's being used mostly for the GPUs and the systems that are running AI today. There's no slowing down on this. So I don't see any relief in sight, at least not anytime soon. We should be seeing more of a pump here than what we have been in recent times. If you look at China also moving in on the EV landscape, right here, they are absolutely surrounding Tesla. If you look at the 2020 version of where BYD was versus the 2025 version of where BYD is now, big deal moving forward. BYD, of course, now, there's the headline, has already lapped Tesla.

3:12 Now it says its Toyota is going to be its next target. And they're saying that they can do that in five years. Toyota being one of the biggest, if not the baddest carmaker out there. And now BYD saying that, no, we think we're going to do it. I want to go to a clip real quick because this will get into the overall strategy around China's AI and what they think it needs to do.

3:34 Take a look.

3:35 This deep seek update, does it tell us anything new about the broader market? ability of China here?

3:42 It tells us that they can continue to innovate on that Pareto efficient frontier, right? So cheap and good is the quick summary, right? They continue to... Cheap but not the best. Yeah, exactly. They have no intention of trying to be the best from what it looks like, right? We haven't heard from a Chinese model that is trying to be number one. They want to be on that frontier, that efficient frontier, and they want to train and run those models without using top tier compute. So that is a challenge to the broader theme of the AI compute structure as well, because these Chinese models continue to be quite good and they don't need top of the line computing power to work. The part that is missing is

4:20 are they doing consumer AI? That was supposed to be the Chinese kind of play, but there has been no evidence of that thus far. Actually, leadership has gone to the likes of Meta and Muse.

4:29 So that's a good point because they start to lean into retail a little bit of where this might be in a very near time. And if you consider how we're going to see blockchain integrate into this. All right, so here is another support in that topic. And that, of course, this is a company that is a Solana company that is operating in China. They think this could be triggering another cycle. And, of course, Solana, this is one I've talked about quite a bit on X, is that this could be the one that leads us out, especially when you look at the transaction play that Appenglow is going to be able to do now. Coinbase also put up a warning flag because they said, Coinbase came in.

5:09 Remember, this happened back in July.

5:12 And what they did was they made it easier for Coinbase to get adopted there and accepted in China. And this changed things because it put Brian Armstrong kind of on the watch list of saying, we need to watch out because China might be pulling ahead. The synergy of blockchain and AI. And this is the thing that I think is the natural fit. And what he was getting at was that China is pulling ahead in being able to achieve that. When you think about the blockchains that are going to potentially be there, well, you have to look at Solana. Solana, of course, entered into China and everybody was astonished that this happened.

5:47 They actually took over the Citibank building.

5:49 And one of the reasons that they were able to do this was they could not have any mention of token or talk about crypto. It was all about accommodating and dealing with getting to the AI developers. And that was the point that I think AI and Solana have now connected.

6:05 Let's go to the chart real quick.

6:07 You've got Solana hovering at that 100 mark, 103 after the last few days. And of course, has it bottomed is the question. And that is what I'm asking right now. Let me know in the comments if you guys are trading on Solana right now. Are you buying and DCAing in or do you think it might have another move down?

6:26 Let me know.

6:27 Let's get into one other thing because this is the big news. And that, of course, is Solana's major infrastructure upgrade today.

6:33 Happened today. Appenglow is now live.

6:35 It targets a 150 millisecond transaction finality. This is down from six seconds, which is basically 40 times faster. Huge opportunity here in being able to get into the payments sector and many other, I think, areas where transactions are paramount. So when you consider where AI integrates into blockchain, this may be the day of when all of this happens because AI agents are going to need that kind of speed. Solana, of course, giving you an example of it right there with this new upgrade. Let me show you one other thing here. This is something that I've always said eventually will take place. Right now, MasterCard is processing 5.4 million transactions per hour. That's 129 milliseconds per. This is basically

7:26 good enough. to go in and compete in this layer. So one other thing to think about here, guys, is not every chain is able to keep up with all this demand and speed. XRP, of course, running in their own problems. And this is an issue that occurred 15 hours ago, even at recording, still a problem. These things need to change. And I think we've got to get the message out there to all of these chains. We are running behind. We've got to get started because the agents are coming. And now it looks like China is, too.

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