March 28, 2021
Dear Sirs,
I dont see how investors would want exposure to something they can purchase on their own with 0 management fees via Coinbase or any other exchange. It is preposterous to say in the proposal that people would inherently pay a premium in order to gain Bitcoin exposure by investing in companies that have decided to invest in Bitcoin. If anything, investors find that Bitcoin exposure is risky hence the decline in stock price of companies such as Microsystems and Tesla.
Bitcoin, is without a doubt one of the most creative innovations in our time but by itself it is not an asset or security. It is merely a technology. This technology allows us to track records of payments and receipts, much like a checkbook with the exception this checkbook is distributed among all the computers on the network.
Janet Yellen said it best as this is one of the most inefficient ways to transact, not just due to the amount of electricity being used but because all of the resources are used to produce only 1 task which is to randomly generate numbers. If Bitcoin were a company, it would be the biggest waste of resources not just due to the power consumption but because each employee does the exact same task and would only be paid if they were able to guess the correct random number.
Lastly, in a recent Bank of America study, over 95% of the total current mined coins are owned by the top 2.4% of addresses. The study also mentioned that it takes only 97 million of inflows to move the price of btc by 1% while compared to gold, it takes nearly 1.87 billion to move by the price by 1%. Not to mention the crypto market is wrought with manipulation from memes, to tweets which have the ability to move the price significantly.
Thank you for your time.