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Andrespetmonkey said:
I know ray tracing needs beastly highest of the high end hardware, so what's actually going on in the vid and what really do they mean when mentioning ray tracing?

Well he mentioned multiple reflections, which is really what ray tracing is about. Multiple might just mean "2" which would be the depth of the ray tracing. So basically, 2 reflections/refractions. (Not sure if he mentioned refraction tbh).

Basically, the more depth the better the scene. 2 reflections is okay, but ideally you would keep tracing reflections until the light is completely diminished. Obviously this would be much more taxing on your system and make real time ray tracing a fantasy at present.

Keep in mind each pixel is computed in this way. You send a ray from the pixel to the scene and computationally determine if there is an object intersection, which is then use to reflect/refract depending on the material of the object.