(UN) Stable Cryptocurrency Markets: Insights From Volatility Modeling

Authors

  • Jasmina Džafić University of Zenica, Faculty of economics, Fakultetska bb, 72000 Zenica, Bosnia & Herzegovina
  • Emir Hečimović Prague University of Economics and Business, Faculty of Finance and Accounting, Winston Churchill Sq 1938/4 CZ-13067 Prague 3 - Žižkov

DOI:

https://doi.org/10.14738/abr.1112.16086

Keywords:

Financial Innovation, Cryptocurrency, Bitcoin, Cardano

Abstract

The cryptocurrency market has attracted considerable attention from investors and researchers alike. This paper examines the volatility patterns of two major cryptocurrencies utilizing GARCH modeling: Bitcoin, based on a proof-of-work mechanism, and Cardano, operating on a proof-of-stake mechanism. Our findings reveal differences in the volatility structures of the two cryptocurrencies, with Cardano demonstrating a reduced long-term volatility compared to Bitcoin. This study suggests that transitioning from proof-of-work to proof-of-stake mechanisms might lead to a decrease in market volatility.

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Published

2024-01-01

How to Cite

Džafić, J., & Hečimović, E. (2024). (UN) Stable Cryptocurrency Markets: Insights From Volatility Modeling. Archives of Business Research, 11(12), 103–119. https://doi.org/10.14738/abr.1112.16086

Issue

Vol. 11 No. 12 (2023): Archives of Business Research

Section

Articles

License

Copyright (c) 2023 Jasmina Džafić, Emir Hečimović

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.