Subject: SR-CboeBZX-2018-040
From: Justin Stucks
Affiliation:

Oct. 16, 2018

Oct 15, 2018 



I recommend the approval of a Bitcoin ETF. 



Bitcoin is something entirely new, a revolutionary new technology that enables anyone, anywhere, at anytime to send value over the internet, without the need for a trusted third party such as a bank or credit card. 



It was created in 2009, from the dust of the economic collapse known as The Great Recession. It arose as an alternative to the US dollar, free from the control of banks and financial institutions who could be influenced by greed. 



Bitcoin can be used as an alternative to the dollar, to pay debts both public and private. If I would like to buy my neighbors car, or if I lost to him in a game of poker, I could pay him with either with cash or with Bitcoin. 



The latter would require him to have a Bitcoin wallet, which does highlight some of Bitcoin's current limitations as a functional alternative to the dollar. Since cryptocurrencies are entirely digital, possession requires a digital wallet to store, receive and spend Bitcoin. Price volatility and network transaction speeds are other areas needed to improve before Bitcoin will experience wider adoption as an everyday payment option. 



While Bitcoin was designed as an alternatile to the US dollar, in it's current state it has more similarities to gold than to greenbacks. One similarity is as a store of value. While price volatility can be much greater than that of the yellow metal, it's not subject to inflation like the dollar. It's purchasing power remains as good or better over long periods greater than 1 year. 



Like gold, Bitcoin is hard to mine. There is a limited supply available which is costly to extract. Gold is created by nuclear fusion in the cosmos, and is buried deep in the Earth's core. Bitcoin is created by the SHA-256 algorithm, and is buried deep in the encryption code. Just like alchemists from centuries ago who were unable to make gold from lead, no man has been able to counterfeit a Bitcoin. 



Just like a gold ETF created opportunities to invest in the oldest known asset class: precious metals, the creation of a Bitcoin ETF would make investments available into the first new asset class in nearly 100 years: cryptocurrencies. Digital assets secured by encryption technology. 



This new asset class will require a fresh set of rules to regulate. It's unlike anything ever seen before, but it has the potential to redefine what we perceive as a store of value. 



Regards, 


Justin Stucks 


Tithewithbitcoin.com 






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