CRYPTOCURRENCY:FACTS AND FICTION

B R I A N J O H N S O N N G A NC H I E F I N V E S T M E N T O F F I C E RC E D A R S I D E H O L D I N G S C O R P O R AT I O N

Fintech disruptions create

dramatic market changes in the last 15 years…

BACK IN 1958,

A COMPANY COULD EXPECT

TO STAY ON THE S&P FOR

61 YEARS.

THESE DAYS, THE AVERAGE

IS JUST

18 YEARS.of S&P 500

companies have disappeared

52%

THE BIGGEST DISRUPTION

EL IMINATING THE MIDDLEMAN

B L O C K C H A I N : D I S R U P T I V E T E C H N O L O G Y

CRYPTOCURRENCIES

BITCOIN

CRYPTOCURRENCY MARKET CAPITALIZATIONS

TOTAL MARKET CAP: $673,050,267,648 Source: https://coinmarketcap.com/

As of January 12, 2018

IS IT REALLY A BUBBLE?

I N S I G HTS O N C R Y P TO C U R RE N CY

RISE AND FALL OF SOME FAMOUS ASSET BUBBLES

Source: Elliot Wave International, YALE SOM, St. Loius

FRED, GlobalFin and Convoy Analysis

TUL IP MANIA (1636-1637)

Referenceshttps://medium.com/@treasurelife911/bitcoin-chart-vs-tulip-mania-chart-905ab3b5281c

PATTERNS IN HISTORY

JAPAN: NIKKEI 225

JAPAN BUBBLE (1988 -1993)

Credits: bicharts.com

US: NASDAQ

DOTCOM BUBBLE (2000 –2001)

Credits: bicharts.com

CHINA

CHINA BUBBLE (2008 -2009)

Credits: bicharts.com

GBTC_Bitcoin Investment Trust (OTC)

Credits: bicharts.com

CONFRONTING REALI T IES

Understand the Risks of Cryptocurrency*

• Financial loss

• Fraud and cybercrime

• Theft or loss

• Computer outage or cyberattack

• Lack of regulation

*Charles Schwab Client Center

U.S. SEC WARNS AGAINST CRYPTO FRAUD

R.P. SEC WARNS AGAINST CRYPTO FRAUD

UNDERSTAND THE RULES OF THE GAME…

K N O W T H E R U L E S

US: Yahoo!

IPO

$1.02/share

(April 1996)

IPO $125.03/share (January

2000)

$4.01/share (October

2001)

Price EPS

Y A H O O !

E A S T M A N K O D A K C O . ( N Y S E )

US: KODK

Credits: bigcharts.com

R I O T B L O C K C H A I N I N C . ( N A S D A Q )

US: RIOT

Credits: bigcharts.com

B W R E S O U R C E S ( D E L I S T E D P S E )

Credits: Pinoymoneytalk.com

PH: BW RESOURCES

E A S Y C A L L C O M M U N I C A T I O N S P H I L I P P I N E S I N C . ( P S E )

PH: ECP

Credits: bigcharts.com

C A N O P Y G R O W T H C O R P . ( T O R )

CA:Weed

Medical Marijuana: The New Bitcoin?

Credits: bigcharts.com

H O R I Z O N S M A R I J U A N A L I F E S C I E N C E S I N D E X E T F ( E T F )

US:HMLSF

Medical Marijuana: The New Bitcoin?

Credits: bigcharts.com

2 0 1 8 C HA I R MA N ’ S I N S I G HTS

of short term or active traders who speculateslose money*

Source: http://www.innovativewealth.com/wall-street-wisdom/individual-investors-bad-investing/

NO INTEREST

RUMOR

CONFIDENCE

OPTIMISM

INSTANT WEALTH

EUPHORIA

BUBBLE BURSTS

SELLING PANIC

LOSTWEALTH

SHORT-LIVEDCONFIDENCE

DESPERATION/CAPITULATION

DOUBT

PESSIMISM

NO INTEREST

HOPE

GREED/MANIA

FEAR/PANIC DESPAIR

Abundant Financing Available

Limited Financing Available

BULL CYCLE BEAR CYCLE

MARKET PHASE CYCLE

Real World Uses of Blockchain Technology

• Payment Processing

• Monitor Supply Chains

• Digital IDs

• Retail Loyalty Programs

• Data Sharing

• Copyright Protection

• Digital Voting

• Title Transfers

• Food Safety

• Data Backup

B L O C K C H A I N A P P L I C A T I O N S

• Tax Regulation and Compliance

• Worker’s Rights

• Medical Recordkeeping

• Weapons Tracking

• Equity Trading

• Wills and Inheritance

• Internet of Things

• Energy Trading

• Securing access to Belongings

• Tracking Prescription Drugs

Conclusion

✓ Cryptocurrencies are driven by speculation (supply and demand) and have no intrinsic value

✓ Blockchain is a game changing technology with real-world applications

✓ Invest in companies in the business of Blockchain, not cryptocurrency

C O N C L U S I O N

C R Y P T O C U R R E N C Y : F A C T S A N D F I C T I O N

THANK YOU.

C R Y P T O C U R R E N C Y : F A C T S A N D F I C T I O N