00:11:19 · Anthony Pompliano
[00:11:19] S2: Have you heard of Base Power? Uh-uh. Oh, man. Alright. This is, if I could put all my money in one company, this would be on the list. I don't... You know, it's always one of those things of like, man, I'm super bullish on these guys. So, these two guys create a business, and they basically have an idea that they are going to vertically integrate the demand management or the energy sector. Now the way that they do that is similar to a Tesla Powerwall. They have their own device. They manufacture themselves in Austin, Texas, and they started in Texas. They've now expanded to a couple other states. They basically come to your home, and they install it. Very, very inexpensive compared to the Powerwall. The reason that they do that is during the day when all of the energy prices are lower, they are sucking that in to those batteries, but they have a decentralized network of them across cities, counties, states, and eventually, they think the national grid. And as they suck that in during the day, then guess what happens at night when energy prices go back up? They're selling it back into the grid, and so they're able to arb that. What does that do for the consumer? The consumer now gets a lower energy bill or electricity bill because they have this demand management thing that they're actually using at their home. And so what they're essentially doing is they are creating a decentralized battery for the energy grid that allows for not only demand management, but the balancing and also some sort of catastrophic response that now becomes possible. And if you do it in a vertically integrated way, not only are you selling hardware, not only do you have the subscription revenue of the actual energy bills, but you also have a energy trading team. Yep. And they're able to generate revenue as well. And so when you hear this, it's like, okay, theoretically, makes a lot of sense, but you still gotta make the hardware. You gotta do sales. You gotta go partner with electricity companies. You gotta do consumer marketing. It's a very complex CapEx heavy type business. What's unique is that, one of the co founders Justin, he came from Anderon. I think he was the head of manufacturing there. And so he really understands how do we build stuff? How do we actually go and create this technology?
00:13:18 · Anthony Pompliano
Then you've got Zach, and Zach, the CEO, he's got incredible access to capital. He came from, I think it was Blackstone. And he also understands how do we go and partner with the utility companies? How do we do consumer marketing? And so you put together this like very unique type of,
00:13:33 · Tillman Holloway
[00:13:33] S3: Well, it it... Back to what we were saying earlier, is is that a more resistant network of power than a than a power plant? Absolutely. And so that's the decentralization of power production and and the demand management of that power, not only individually, but then as an aggregate. That's powerful stuff. That... That's what the future is about because the the issues that we have right now from a grid perspective are not about the generation. It's about the management and the storage. And we... You see even the silver state batteries that, silver solid state batteries that have come out and the leap forward that that is in terms of storing power. It's enough to cover households. And so a lot of people don't even understand the dynamic of power production and the cost associated to it because it's just a bill that's just nine pages long with infinite taxes. But the reality of it is is we're still getting charged like the old cell phone days. You remember the old cell phone days where if you went over your minutes, you paid an exorbitant amount of money for the extra minutes. You you... If you use an extra one hundred minutes, it was more than your entire bill was. That's how demand power works. If you use your power a lot during the hours of seven to 9AM when everyone's up getting ready to leave for school and work, you're using at the most expensive rate. If you use a lot of power in that and you have a lot of amperage in that, which is like intensity of usage, every hairdryer in your house is on, every blender's on, you know, you're driving up the demand rate at which you get multiplied your usage. And so you can in those two hours use 50% of your bill. That could represent 50 of your bill. So if you could have enough power storage on-site to use that power just for those two hours and remove 50% of your bill, then that 50% is now back on grid that other people can... It it it gives us a huge extension of existing equipment and CapEx reduction in terms of invest in further investment in our grid. So I think it's exceptional.
00:15:45 · Anthony Pompliano
Ad[00:15:45] S2: Today's episode is brought to you by Figure. The holidays are here, and our partner Figure is feeling thankful. If you wanna earn up to $1,250 for Thanksgiving, they're running a promo for the entire month of November where you're rewarded for completing a crypto backed loan. From November 1 to November 30, any user who've never completed a crypto backed loan with them can qualify. So check out the link in my bio for more information and go see if you wanna use Figure for our crypto backed loan. If you're into Bitcoin, you already know. Selling is the last thing you want to do. But at the same time, life happens, man. Opportunities arise, bills come up, and markets move. That's where Figure comes in. Instead of selling your Bitcoin, Figure lets you borrow against it so you can get cash without losing your position and may also avoid triggering a tax event. Right now, their loans are around 8.91% interest. That's 9.9% APR at a 50% loan to value. So you keep your upside but still get liquidity. And I know the first question people ask is, yeah, but is it safe? It's a good question. Figure uses MPC custody, which basically means your Bitcoin stays in its own segregated wallet. It's not being lent out, pooled, or sitting on some exchange. They also have optional liquidation protection, which helps if the market gets volatile. And if you're on the other side, like you've got cash and you want yield, they've got something called democratized prime. It's earning up to 9% APY, paid hourly, and is backed by real world assets, not just token inflation. So whether you try to hold your Bitcoin long term or actually put capital to work, it's a pretty interesting setup. If you wanna check it out, I've got a link in the description that you can go to, or you can go to figuremarkets.co/pomp. If we stay on this theme of, you know, what can the AI industry learn from, from crypto or or Bitcoin, If there's one word that I think, most people would use to describe the Bitcoin market from an investor perspective, it's volatile. And volatility is, both sought out because when it's working with you, it's... That's called asymmetry. You know, the... With the word change in volatility, asymmetry, and people get excited because number go up. At the same time, when, volatility works against you, it's really painful, and, people do not get excited about that.
00:17:53 · Anthony Pompliano
AdIt does feel like we're now starting to see this in AI. It's like just there's more and more volatility happening in these markets. Even just after the midterm elections, Next morning, stock's up. Two days later, stock's down big. And so that volatility is changing the way that investors think about investing or how they approach markets. What are your views on that volatility kind of expanding and really ending up everywhere?
00:18:17 · Tillman Holloway
[00:18:17] S3: It's what we focus on at Arch Public, quite frankly. It's like reeducating people around the volatility value of the symbols that they have conviction in as well as the upside trajectory or the the price appreciation. You know, if you pick the blue blue chip stocks, if you tick... Pick Tesla and SpaceX and all the ones that everyone's talking about, look at the volatility that they have attached to them. Everyone's wanting to put capital in them, and the FOMO will drive people to over allocate capital. And so coming up with a plan where you prudently buy along the cost curve, taking advantage of the volatility along the way is how you turn volatility into an asset for yourself and into something that's of value to you. A lot of retail doesn't know how to do that. Even a lot of enterprise size customers don't know how to do that and don't have tools that can do that. And so I just encourage anyone that sees... Bitcoin is a great example of this, but, you know, you've seen a price top to bottom of, like, 40% in a very short period of time. The the amount of energy that you see in these moves in price movement is why Larry Fink's involved. He's not betting on Bitcoin going to a million dollars. Now he may believe that it eventually will, but that's not what his core focus is. The core focus is is that there's a user adoption rate that is sustainable and that we haven't even scratched the surface on. Like, it's getting integrated into the fabric of our financial rails. And there's 5,000,000,000 unbanked people and unBitcoined people out there that are going to have some interaction with it going forward. And that draw of liquidity coupled with volatility is a market maker's dream, and that's how you make money as a market market maker is having something go up and down, up and down, and being the liquidity providers for both of those pricing ranges. And so I just think that everything in the market is shifting because you're seeing connectivity of markets expand at an exponential rate. And that connectivity is allowing market makers to play arbitrage opportunities during... You know, between those pricing pairs, and that is injecting a lot of liquidity into those markets. And you can see it on iBit as a prime example of this.