Cryptoassets have delivered extraordinary returns over the past five years: an average annual rate of more than 60%, in several cases. But this alone shouldn’t be a reason to invest – rarely has the old warning “the value of investments can go down as well as up” been more salient.

Our analysis of the key drivers behind how cryptoasset prices behave – and why – makes us highly sceptical about their value to most of our clients as investments. 

In a nutshell, we don’t see a stable source of demand for cryptoassets. We also think claims don’t hold up that they protect against economic risks such as inflation. Without that stability, we think they’ll always be highly volatile assets that no one can rely on to protect and steadily build their wealth.