Grayscale: The credibility of the US dollar is challenged by debt and inflation pressures, and encryption assets may become an alternative store of value.

Odaily News Gray's latest macroeconomic 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 U.S. dollar as a store of value, they may turn to alternative assets such as crypto assets. The report states that Bitcoin and Ether, as core currency assets in the crypto market, possess the potential to hedge against the depreciation of fiat due to their limited and transparent supply mechanisms. Similar to gold, their value derives from "not being passively expanded in supply due to government debt demands." Gray emphasizes that the unsustainable growth of public debt is driving the global demand for crypto assets, but if governments strengthen fiscal discipline and reaffirm the independence of central banks in the future, it may weaken the demand for crypto assets.