Grayscale Names 3 Cryptos That Could Gain From Surging US Debt

Key Takeaways

• Grayscale says government debt could support three cryptocurrencies.
• U.S. public debt exceeded $40 trillion for the first time.
• Treasury buybacks address bond pressure but not structural deficits.

Grayscale Connects Rising Debt to 3 Cryptos

Surging U.S. government debt could strengthen demand for BTC, ETH, and ZEC, according to an Aug. 26 analysis by Grayscale Head of Research Zach Pandl.

“Unchecked government debt growth undermines the credibility of fiat currencies and drives investors to seek out alternative stores of value like physical gold and certain cryptocurrencies,” he wrote, adding:

“In digital assets we think the so-called ‘debasement trade’ will primarily benefit bitcoin, ethereum, and zcash.”

Bitcoin presents the most established scarcity argument among the three assets through its programmed maximum supply of 21 million coins and lack of a government issuer. However, bitcoin’s store-of-value role remains debated due to its volatility, limited history compared with gold, custody risks, and sensitivity to broader financial conditions. Ethereum provides a decentralized settlement network, while Zcash combines a Bitcoin-like design with optional privacy features.