. : . . Investment oldman Do Cryptocurrencies Meet the Criteria for Currencies? Maneoment 3) Bitcoin is an Unstable Store of Value Division 100% 95.0% mBitcoin =Ether = Ripple = S&P 500 (Over Bitcoin's History) 3 S&P 500 (Since 1945) 60 | 47 47 40 33 75% ; 22 2 20 ww 3 LN ee] 0 - 0% N 50% E -20 N : 19% N ~ -30% 5 \N -40 25% 20.6% N 15.6% 16.1% 16.7% SS ~ -60% 11.7% 119% 12.9% -60 | 57% 69% 87% “G8% on -80 ° Turkey Mexico Colombia South Africa Brazil Argentina Russia Bitcoin Count of Drawdowns of 15% or More Worst Historical Drawdown (TRY) (MXN) (COP) (ZAR) (BRL) (ARS) (RUB) (XBT) (Left Axis) (Right Axis) " Bitcoin’s annualized volatility of 95% dwarfs even the most volatile of EM currencies. " Bitcoin’s volatility is 8x the volatility of US equities. In terms of both count and magnitude, Bitcoin, Ether and Ripple have all experienced more severe drawdowns over their short histories than the S&P 500 has since 1945. = Bitcoin exchanges have thin liquidity, which plays a role in driving enormous price movement—so far to the upside, but which could cause a flash crash upon a large sell order. A ~$30 million sell order would likely move the market by 5%. " A store of value should predictably preserve wealth. Bitcoin is unable to do so, as it neither generates income nor grows with earnings. Source: Investment Strategy Group, Bloomberg, Coindesk.com. 15 HOUSE_OVERSIGHT_025678