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Grayscale says Bitcoin adoption should grow despite market volatility
The asset manager ties its outlook to elevated inflation and currency devaluation risk amid ongoing, unsustainable government debt growth.
Grayscale says Bitcoin adoption is likely to keep expanding over the medium and long term even if prices remain volatile in the near term, according to an analysis cited by Bitcoin Magazine.
The firm pointed to continued unsustainable government debt growth as a driver that keeps inflation and currency debasement risk elevated, which it said could widen investor demand for scarce assets and alternative stores of value.
Grayscale also argued that stablecoin adoption and tokenization will help make blockchain infrastructure more common across financial services, with banks and asset managers already moving into the space.
In its note, Grayscale said increased spread of the technology would give more intermediaries the infrastructure and regulatory clarity to hold and transact in Bitcoin, potentially reducing the historic separation between Bitcoin and mainstream finance, and it expects investors to increasingly access Bitcoin through exchange traded products.
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