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Investment Bitcoin’s Market Cap is Dislocated Relative to that of Payment yc Processors Division Relative Transaction Volume and Market Cap a 12m Transaction Volume ($Trillion) $10 5 Market Cap as % of 12m Transaction Volume (Right) 96.8% ~ 100% ¢ $8.9 $9 - $8 - + 15% $7 - $6 - $5 - + 50% + 25% ~ 0% Visa Mastercard Bitcoin « Traditional payment processors, Visa and Mastercard, each processed several trillion worth of transaction volumes in 2016. Bitcoin has processed $111 billion of transactions over the last 12 months. — Bitcoin’s slow transaction time precipitated its recent “hard fork” in attempt to enhance processing capacity. = Whereas traditional payment processors’ market cap represents ~3% of their transaction volume, Bitcoin’s represents 97%, suggesting its valuation is dislocated from its fundamental value and that speculation has driven its price. (1) “Future of Finance Payment Ecosystems,” Goldman Sachs Global Investment Research, August 3, 2017. 17 HOUSE_OVERSIGHT_025680 Source: Investment Strategy Group, Bloomberg, Corporate Annual Reports, Cryptocompare.com.