Gray Scale: The dollar's credibility is challenged by debt and inflation pressures, and crypto assets may become an alternative store of value

ChainCatcher news, Grayscale's latest macro research report points out that the U.S. government's commitment to maintaining low inflation is facing a credibility crisis due to high debt levels, rising interest rates, and ongoing deficit spending. If investors begin to doubt the stability of the 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 a limited and transparent supply mechanism, giving them the potential to hedge against the depreciation of fiat currencies in a macro environment. Similar to gold, their value comes from "not being passively expanded in supply due to government debt demands." Grayscale emphasizes that the current unsustainable growth of public debt is driving global demand for crypto assets, but if governments strengthen fiscal discipline and reaffirm central bank independence in the future, it may weaken the demand for cryptocurrencies.