Grayscale report: US dollar reputation is challenged by debt and inflation, and crypto assets may become a replacement for store of value

According to ChainCatcher, Grayscale's latest macro research report pointed 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 sustained deficit spending. Investors may turn to alternative assets such as cryptocurrencies if they have doubts about the stability of the US dollar as a store of value. The report said that Bitcoin and Ethereum, as the core monetary assets of the crypto market, have limited and transparent supply mechanisms, 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 supply due to government debt demand." Grayscale stressed that the current unsustainable growth of public debt is driving global demand for crypto assets, but if governments in the future strengthen fiscal discipline and reaffirm central bank independence, it may weaken the demand for cryptocurrencies.