Grayscale Says US Debt Above $40 Trillion Could Boost Bitcoin, Ether 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.