The Hurdle Rate Podcast Episode 1 - Bitcoin is the Hurdle Rate
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Apr 2, 2025 Discover the intriguing relationship between Bitcoin and corporate investment strategies. The discussion dives into what hurdle rates mean today and why Bitcoin is emerging as a key benchmark. Explore the robust security of Bitcoin's decentralized network and its dual role in personal savings and corporate treasuries. Uncover the psychological shifts needed to view Bitcoin as a reliable asset. The conversation also touches on the impact of AI on society and the workforce, alongside insights into the complex interplay of tariffs and inflation in the current economic climate.
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Bitcoin as the Investment Hurdle
- Bitcoin should be your personal and corporate hurdle rate, the return you must beat to justify other investments.
- This shifts how investments are evaluated, prioritizing those that outperform Bitcoin's returns.
No Need to Predict Bitcoin Return
- You don't need to predict Bitcoin's future return to use it as a hurdle rate, just like benchmarks like S&P 500 don't have a known future return.
- Bitcoin offers a unique true savings vehicle with a hard-to-beat return, especially in a post-easy-money era.
Bitcoin's Time-Dependent Risk
- Bitcoin challenges traditional risk versus return models by offering high risk-adjusted returns over multi-year horizons.
- Viewing Bitcoin as a long-term asset shifts focus from short-term volatility to meaningful growth over four years or more.