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.

Manuscript Form The thesis is well written, it is easy to follow author’s thoughts and everything is explained thoroughly. Reader can easily orient in the structure of the thesis. There are minor formatting details – it might be useful to round all number to e.g. 3 decimal places, number formulas for referencing, check that there are all numbers in tables are aligned, check for typographic details (like page 43 where there is a minus sign is at the end of the line), some ACF or PACF charts could be in the text, since author uses them for description. On page 45 there is reference missing (error from MS Word referencing to appendix).