CryptoKing
Wed Jul 10 2024
|
6 answers
1091
What is the risk-free rate for cryptocurrencies?
I'm curious to understand the concept of a "risk-free rate" in the context of cryptocurrencies. Given the inherent volatility and uncertainty surrounding digital assets, does such a rate truly exist? If so, how is it determined? Are there any benchmarks or indices that are commonly referenced as the risk-free rate for cryptocurrencies? And lastly, how does the risk-free rate for cryptocurrencies compare to traditional financial markets, such as bonds or treasuries? Understanding this would greatly assist in evaluating investment decisions and portfolio allocations in the crypto space.
