Risk Analysis for Cryptocurrency: Challenges and Future Scope

Abstract

The emergence of cryptocurrencies has significantly impacted the global economy and disrupted the established banking structures. However, the decentralised structure of cryptocurrencies and the lack of governmental control have brought about several hazards that require careful analysis and efficient management. This paper presents a comprehensive risk analysis of cryptocurrencies with a focus on the difficulties encountered and potential future options for risk mitigation. This study examines the hazards associated with cryptocurrency, considering elements such as techniques, tools, advantages, and disadvantages of available publications. It assesses how these risks affect a variety of stakeholders, such as investors and companies. This paper also explores the concept and adopts currently used by financial institutions and industry individuals in risk management. It assesses how well these techniques work to reduce the identified risks while highlighting their inherent drawbacks. It emphasizes the value of encouraging interdisciplinary collaboration among academia, industry specialists, and regulatory organizations to address the changing issues and create a future landscape of Bitcoin risk management.