For fiat currencies, credibility is paramount. Today, because of high public debt, rising bond yields, and an inability to control deficit spending, the U.S. government’s commitment to ensure low inflation may no longer be fully credible. In our view, it looks increasingly likely that the strategy for managing the nation’s debt burden will involve at least moderately high inflation. If holders of U.S. Dollar-denominated assets come to believe this, they may seek out alternative stores of value. Cryptocurrencies like Bitcoin and Ethereum can potentially serve this purpose. They are alternative monetary assets based on novel technology. […]