The crypto circus: five Rings of financial mayhem in 2025

So we’re in the new year. Bitcoin is struggling to make up its mind about going above $100,000 or dipping below $90,000. 

But in the grand carnival of finance, a mix of innovation, speculation, and outright absurdity continue to churn. Learn Crypto explores five distinct topics that encapsulate the current state of crypto, from regulatory misadventures to the latest trends in digital assets. Buckle up; it’s going to be a bumpy ride.

The regulatory rollercoaster: governments vs crypto

If there’s one thing that’s certain in the world of cryptocurrency, it’s that uncertainty reigns supreme. Governments around the globe seem to be in a perpetual state of confusion about how to regulate this digital Wild West. In 2025, we’ve witnessed a particularly entertaining episode of this ongoing saga: the United States’ attempt to establish a comprehensive regulatory framework for cryptocurrencies.

Lawmakers have really just been throwing spaghetti at the wall to see what stick, resulting in a mishmash of regulations that seem to change with the wind. One day, it’s all about protecting consumers; the next, it’s about stifling innovation. The result? A chaotic environment where crypto exchanges and startups are left guessing which way the regulatory winds will blow.

This lack of clarity has led to a mass exodus of crypto companies seeking refuge in more favourable jurisdictions. Countries like Singapore and Switzerland are rolling out the red carpet for blockchain innovators, while the US is left wondering why it’s losing its edge in this burgeoning industry. The irony is palpable: the very regulations intended to protect consumers may end up driving innovation overseas, leaving American investors with fewer options and less security.

The NFT Bubble: still inflated? Ready to burst?

Remember the NFT craze of 2021? The digital art market exploded, with some pieces selling for millions of dollars. Fast forward to 2025, and we’re still grappling with the aftermath of that speculative frenzy. While some NFT projects have matured into sustainable businesses, many others are floundering, struggling to find their place in a market that has become increasingly sceptical.

The latest trend? Fractionalised NFTs. The idea is simple: instead of buying an entire digital asset, investors can purchase a fraction of it, making high-value NFTs more accessible. But here’s the catch: this trend feels eerily reminiscent of the subprime mortgage crisis, where assets were sliced and diced into oblivion. Are we really ready to trust a system that allows us to own a piece of a digital cat meme?

As the NFT market continues to evolve, it’s crucial to remember that not every digital asset will hold its value. Many projects are little more than glorified marketing schemes, and the potential for loss is significant. The question remains: are we witnessing the birth of a sustainable digital art movement, or are we simply watching a bubble waiting to pop?

Bitcoin’s identity crisis: P2P money or digital gold?

Bitcoin has long been touted as “digital gold,” a hedge against inflation and a store of value. However, in 2025, that narrative is facing a serious identity crisis. With the rise of central bank digital currencies (CBDCs) and the increasing acceptance of cryptocurrencies for everyday transactions, Bitcoin’s role in the financial ecosystem is being called into question.

On one hand, Bitcoin enthusiasts argue that it remains a valuable asset, especially in times of economic uncertainty. On the other hand, sceptics point out that its volatility makes it a poor store of value. After all, who wants to hold an asset that can swing wildly in value overnight? As more people turn to stablecoins and CBDCs for their transactional needs, Bitcoin risks being relegated to the sidelines, a relic of a bygone era.

The irony is hardly lost that Bitcoin’s very success has led to its potential downfall. As it becomes more mainstream, it loses the allure of being a “secret” investment. The more people pile into Bitcoin, the more it behaves like a traditional asset, subject to the same market forces that govern stocks and bonds. In this new landscape, Bitcoin may find itself struggling to define its purpose.

The return of DeFi?

Decentralised finance (DeFi) has been touted as the future of finance, a way to democratise access to financial services and eliminate the need for traditional banks. In 2025, we’re seeing the fruits of this movement, with a plethora of DeFi platforms offering everything from lending to yield farming. But before we pop the champagne, let’s take a closer look at the darker side of this revolution.

While DeFi has the potential to disrupt traditional finance, it also comes with significant risks. The lack of regulation means that investors are often left to navigate a minefield of scams, hacks, and poorly designed protocols. In 2025, we’ve seen several high-profile hacks that have resulted in millions of dollars in losses for unsuspecting investors. The promise of high returns can be enticing, but the reality is that many DeFi projects are little more than house of cards waiting to collapse.

Moreover, the complexity of DeFi platforms can be daunting for the average investor. With terms like “liquidity pools” and “impermanent loss” thrown around like confetti, it’s no wonder that many people are left scratching their heads. The irony is that while DeFi aims to simplify finance, it often does the exact opposite, creating a new layer of complexity that can be just as exclusionary as traditional banking.

The environmental debate: cryptographic yet carbon

As the world grapples with climate change, the environmental impact of cryptocurrency mining has come under intense scrutiny. Bitcoin, in particular, has been criticised for its energy-intensive proof-of-work mining process, which consumes more electricity than some small countries. In 2025, the debate over crypto’s carbon footprint is more relevant than ever, as environmental activists and industry leaders clash over the future of digital currencies.

On one side, advocates for crypto argue that the industry is evolving. Many projects are exploring more sustainable alternatives, such as proof-of-stake mechanisms that require significantly less energy. However, the reality is that the damage has already been done. The perception of crypto as an environmentally harmful industry lingers, and it’s a narrative that’s difficult to shake.

As more investors become conscious of their carbon footprint, the pressure is on the crypto industry to clean up its act. This could lead to a shift in how cryptocurrencies are mined and traded, potentially impacting their value and adoption. The irony is that while crypto was once seen as a revolutionary technology, older networks like Bitcoin and Ethereum now risk being labelled as a relic of an unsustainable past.

Conclusion: the crypto circus continues

As we wade through the tumultuous, often murky waters of cryptocurrency and blockchain in 2025, one thing is clear: the circus is far from over. From regulatory missteps to the challenges of defining digital assets, the crypto world is a complex web of innovation interspersed with a healthy dollop of speculation.

In light of this, it always pays to be a sceptic, with optimism at heart.