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Investment oldman Sachs Management Why Have Cryptocurrencies Rallied So Much? Division 1. Bitcoin Supply Over Time (Million Tokens) 2. Currency Composition of Bitcoin Purchase Volume Euro = Polish Zloty m British Pound 25 5 100% mUS Dollar mJapanese Yen © South KoreanWon m# Chinese Renminbi b ~ : ‘yd |! i 90% \ | I \ ] NTL A | a4 80% { A Current Supply ans = 45 | = 60% 2 Q 5 50% - ” i= 5 40% 2 ma 30% 5 20% 10% 0 BYTSRASSIFSSSSELSSISSSLLSARIB 0% | ) ) ) SegsSssRSGRRRKSRBBSRRRBKRaAntaAnnnan 2011 2012 2013 2014 2015 2016 2017 = In addition to speculation, which has been the biggest driver of cryptocurrency appreciation, other drivers include: = Perceived Scarcity: Bitcoin’s 21 million token cap is expected to be reached in 2140 (16.5 million today). Many of the over 2,000 other cryptocurrencies, however, do not have a capped supply. Further, while unlikely, bitcoin’s token cap could be raised if a consensus of programmers decided so. = Desired Safe-haven: Increased global participation reflects desire for an asset independent from governments or central banks (“digital gold”). Many governments from which investors have sought diversification, however, have recently banned domestic crypto-exchanges. 10 HOUSE_OVERSIGHT_025673 Source: Investment Strategy Group, Bloomberg, Cryptocompare.com.