Grayscale Says US Debt Above $40 Trillion Could Boost Bitcoin, Ether Debasement Trade
JH Kim
Summary
- Grayscale Research said the U.S. federal government's debt topping $40 trillion and persistent fiscal deficits could spur investment demand for digital assets such as Bitcoin.
- Grayscale Research said elevated U.S. government debt and fiscal deficits could increase investor interest in the so-called debasement trade.
- Grayscale said Bitcoin (BTC), Ether (ETH) and Zcash (ZEC) are potential investments for the debasement trade.
Forecast Trend Report by Period
U.S. federal government debt has climbed above $40 trillion, and persistent fiscal deficits could shift investment demand toward digital assets such as Bitcoin, Cointelegraph reported on Aug. 28, citing an analysis by Grayscale Research.
Grayscale said elevated U.S. government debt and ongoing fiscal deficits could increase investor interest in the so-called debasement trade.
The debasement trade refers to a strategy of investing in scarce assets as a hedge against rising government debt and a potential decline in currency value.
Grayscale identified Bitcoin, Ether and Zcash as potential investments for that trade.
JH Kim
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