Bitcoin and ethereum in 2025 are once again attracting investor attention, reaching record levels and fueling speculation. Yet Ken Fisher, billionaire and founder of Fisher Investments, warns that digital assets carry exceptional risk. In his column for The Telegraph, he emphasizes the need to ask a simple but crucial question: “Why do I even want to own cryptocurrency?”, reports G.business citing The Telegraph.
Extreme volatility of the crypto market
Fisher underlines that cryptocurrencies are highly volatile. From his experience, most investors tend to buy at peaks out of fear of missing out, and sell in panic during downturns, locking in losses. He points to three aspects that should guide the decision whether holding crypto makes sense.
Global politics and regulation
The growth of cryptocurrency prices is often linked to expectations of softer U.S. regulation, but changes are happening worldwide. In the UK, Chancellor of the Exchequer Rachel Reeves presented a plan to align crypto with traditional finance, introducing clear rules and tougher anti-fraud measures. Hong Kong has seen the number of crypto-related companies grow fivefold, surpassing 1,100. Switzerland has operated under a new legal framework since 2021 that boosted startups, while Japan is preparing reforms that may cut taxes and pave the way for the first domestic bitcoin ETF.
Inflation protection questioned
Supporters claim bitcoin protects against inflation because its supply is capped at 21 million coins, with many permanently lost. But the facts suggest otherwise. In 2022, bitcoin fell by 64% at the same time inflation soared — 11% in the UK and over 9% in the US. The only major test of crypto’s ability to withstand inflation ended in failure.
Why prices remain unstable
According to Fisher, price swings come from the lack of fundamental anchors: cryptocurrencies have no industrial use, profits, or sales figures. Prices are driven only by investor sentiment and demand. Rising crime adds to the problem — the UK has already seen convictions for crypto fraud worth millions of pounds, while global scandals included the Bybit exchange hack in February and the OmegaPro scheme. Even stablecoins, supposedly tied to fiat currencies, do not always live up to their name. Regulatory confusion worsens the risks: in the UK, for example, foreign stablecoins may face different rules than domestic ones, threatening market chaos.
Conclusion for investors
Fisher’s remarks highlight that investing in cryptocurrencies remains extremely risky and demands sober judgment. Regulatory initiatives worldwide do not eliminate the threat of fraud or sudden market crashes. The experience of recent years has shown that bitcoin does not shield against inflation and often amplifies losses. Stablecoins, once seen as a safe option, also reveal weak spots and conflicting regulations. Investors should carefully assess these risks before purchasing digital assets, keeping in mind the warnings from experts.
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