Grayscale: US dollar credibility challenged by debt and inflation pressures, crypto assets may become alternative stores of value

ChainCatcher reports that Grayscale's latest macro research report points out that the US government's commitment to maintaining low inflation is facing a credibility crisis due to high debt levels, rising interest rates, and continued deficit spending. If investors begin to doubt the stability of the US dollar as a store of value, they may turn to alternative assets such as cryptocurrencies.

The report states that bitcoin and ethereum, as the core currency assets of the crypto market, have limited and transparent supply mechanisms, giving them the potential to hedge against fiat currency depreciation in the macro environment. Similar to gold, their value comes from "not being passively expanded in supply due to government debt needs." Grayscale emphasizes that the current unsustainable growth of public debt is driving global demand for crypto assets, but if governments around the world strengthen fiscal discipline and reaffirm central bank independence in the future, it may weaken the demand for cryptocurrencies.