The Hurdle Rate Podcast Episode 26 - Zoom Out. We're Early.
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Sep 9, 2025 Pierre Richard, a prominent voice in the Bitcoin community, shares his insights on Bitcoin's role in modern finance. He delves into the cautious approach of the insurance sector towards Bitcoin and the unique challenges companies face in balancing growth with legal risks. Richard also discusses the complexities of securing credit ratings for Bitcoin, advocating for a long-term perspective on its adoption. Additionally, he highlights Bitcoin's potential as a self-insurance mechanism, emphasizing the importance of education and self-custody in navigating this volatile market.
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Black Box Indexes Create Hidden Biases
- S&P's committee-driven inclusion is opaque and subjective rather than purely rules-based.
- Matt Cole argues rules-based indices like Bloomberg avoid human bias and better serve passive investors.
Rules Over Humans Reduce Index Churn
- Algorithmic, rules-based inclusion removes human bias and churn from indices.
- Jeff Walton expects Strategy to join major indexes eventually as market cap and eligibility grow.
LIBOR Comparison For Discretionary Indexing
- Pierre compares discretionary index decisions to the LIBOR scandal as a cautionary tale about centralized judgment.
- He notes many passive investors unknowingly rely on these discretionary processes.