Investment Saal Management : Why Have Cryptocurrencies Rallied So Much? Division 25 100% aUS Dollar ms Japanese Yen © South Korean Won m Chinese Renminbi = Euro = Polish Zloty = British Pound } At | aii A A OR “Wil = 80% | " aa | fee {i 5 Current Supply 0m | ' =! 60% || > ll Qa = 50% - | c 8 10 40% | 2 30% 5 20% f 10% 0 2 SXTORRSSISSSESTLSSSSSSISARRSB 0% | ) , , SexgsestRGRRBRKSBSRQAQSRRRBKKRanrsdsStnnaan 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. Source: Investment Strategy Group, Bloomberg, Cryptocompare.com. 10 HOUSE_OVERSIGHT_025673