Grayscale Links U.S. Debt Above $40 Trillion to BTC ETH ZEC Demand View
Grayscale names Bitcoin, Ethereum and Zcash in its published view on debt-driven demand for alternative stores of value; real 30-year yields near 3 percent.
Grayscale stated that unchecked U.S. government borrowing can weaken confidence in fiat currencies and raise investor interest in alternative stores of value.
The firm named Bitcoin, Ethereum and Zcash as assets that could benefit from what it calls the debasement trade.
U.S. public debt has surpassed $40 trillion. The 30-day average for real 30-year Treasury yields stands near 3 percent.
Grayscale noted that recent Treasury buybacks of long-maturity notes and bonds reduce the supply of those securities but do not address underlying budget shortfalls.
The firm presented these observations as its own view rather than a guaranteed market outcome. No figures for asset flows or timelines appear in the statement.
Separate outlook from Ray Dalio
Ray Dalio separately estimated that a U.S. debt crisis could arrive in roughly three years, give or take two, without policy changes.
Dalio cited a possible $2 trillion budget shortfall this year and called for spending cuts, lower rates and higher revenue to narrow the gap toward 3 percent of GDP.