In: Accounting
Compare the interest rate risk of Bitcoin price to the interest rate risk of prices of other assets, such as bonds, stocks or properties
Interest rate risk differences
Volatility
Bitcoin - Bitcoin growth and fail is extremely volatile hence the interest rate is also not stable
Other assets - other assets such as debentures offers a steady rate of interest rate and hence are more stable and less volatile. They generally offers a predetermined rate of interest.
Currency or commodity category
Bitcoin
They are not classed in any of the category, such as they does not fall in currency category and neither considered as a commodity.
Since they are result of mining they are treated as a cryptocurrecny and hence they does not recognized by any government and hence they have high risk related with the rate of interest.
Other assets
Other assets are classified as currency or commodity and are actually governed by a body and hence there exists a less risk with the interest rate.
No fixed rate of interest
Bitcoin
Since bitcoin is much volatile it does not offers any fixed rate of interest and hence this is high risky .
Other assets
Other assets such as debentures generally have a fixed rate of interest and hence they are safe to invest.
Estimation of income
Bitcoin
In case of bitcoin the risk of estimating the earning is very high as it operates in a volatile market.
Other assets
In other assets we can easily estimates the future earnings as the rate of return is generally fixed.