Risk Analysis of Stablecoins: Exploring Blockchain Integration, Stability Mechanisms, Regulatory Challenges, and Market Impact

Cryptocurrency investments are known for their high-risk, high return potential due to the lack of regulation and extreme volatility. This attracts investors but also raises concerns about fraud and credibility. While some governments are beginning to recognize cryptocurrency as legal tender, others oppose it for its untraceable nature. This study examines five major cryptocurrencies-Bitcoin, USD Tether, Ethereum, BNB, and XRP-chosen based on market capitalization, using data from January 2018 to September 2023. The GARCH model is employed to analyze the risks associated with these cryptocurrencies, providing insights into their volatility and potential for returns.