Hi Guys!

Hope everyone is keeping well and safe. Thanks for providing me the opportunity to pitch an
investment plan. Kindly find below some high-level notes on - why crypto currency and the evolution
of blockchain technology.

Majority of us confuse the term money with currency and here’s my perspective on - The difference
between both entities.

Money is a store of value and let’s assume that ‘X’ is a store of value.

Currency is a legal tender that is backed by ‘X’ and the idea behind its adoption is that - it is easier to
transfer and is regulated by a central entity.

We interact with currency almost daily, but have we thought - what is it backed by?

Gold kept governments disciplined: The US dollar (FIAT currency) used to be pegged to the Gold
standard and then it decided to detach itself – thus backed by nothing.

 Little more complex than that. It was this way for a long time. Other countries wanted their
values to be backed more stably similar to the gold standard. But procuring that much gold
was expensive. And if everyone went down this path it would be unfeasible. So other
countries decided to back up their currency with the dollar. Making dollar the defacto
reserve currency. This was also done to pounds but ultimately more currencies were pegged
to the dollar giving it preference. Later on US realised this to be prohibitive. With respect to
providing stimulus managing healthy inflation and other measures. China had already
realised the benefit of a ‘free-floating currency’. It provided them the means of currency
manipulation required to more easily achieve the aforementioned points. There were a lot
of UN pressure for China to address this. Eventually US decided to do the same. Their
reasoning was sufficient currency was pegged to theirs and that with through oversight it
was tenable are preferential. *I know there’s probably some points I’ve glossed over and
some I’ve oversimplified.* That’s the problem from the stand point of more mature
economies. But the problem is even more pronounced in emerging economies where civil
and neighbouring conflict, mismanagement leading to rampant inflation and other
phenomena more adversely affects the population. Ultimately however a need for
centralised currencies exist for a country to exert some form of healthy level of control over
its economy. I believe in the long term the existing of both decentralised and centralised
currency with each acting as a system of checks and balances against the other.

FIAT means: A determination by authority meaning paper currency can be printed at will.

We all know what triggered the 2008 financial crisis i.e. bad debt and excessive currency printing
causing inflation.

To address the above issues: Satoshi Nakamoto (an anonymous entity *clarify a bit more cuz I think
someone who isn’t familiar with the field would think this is sus*) invented Bitcoin – now called
Digital Gold because it mimics a significant characteristic of gold that being scarcity.

 Something like, he first published a Journal Article proposing the inherent flaws of
centralised currencies today can be fixed by digital currencies. After collaborating with a few
individuals virtually none of whom can confirm his identity, he was able to launch the
project. It is believed for the currency to be truly decentralised no individual was to exert
 undue influence on it and this his identity being secret paramount hence the mysterious
nature as to his identity. *perhaps simply it, change anything that’s wrong.*

Blockchain is an append only ledger: A chain of blocks. Each block represents a package of
transactions recorded at a particular time interval and is signed off by a verifier via
encryption.*where does burning coins come into play then*.

Satoshi did not invent blockchain: He solved the Byzantine problem which sets the argument – how
can peer to peer transfer of value take place among adversaries (threats). His solution was called the
Proof of Work Consensus algorithm (POW).

The combination of POW and blockchain technology lead to the invention of the decentralised
system – Bitcoin.

The Bitcoin blockchain is composed of two segments –

 The back end i.e. the “gold” mine and miners.

 The front end – the application through which the BTC token (gold equivalent) can be used
for peer to peer transfer (P2P).

Every time a P2P transfer takes place – POW enables the miners to verify the transaction and they
earn rewards in BTC for their effort. Thereby mimicking actual gold mining!

Technology is bound to evolve and the same goes for Bitcoin now called 1 st generation blockchain.
Bitcoin is perceived as a store of value and it can be transferred between peer to peer. However,
there was more room for improvement.

2nd generation blockchain Ethereum decided to adopt POW but further enhanced it by introducing –
smart contracts. This feature enabled developers to build applications on top of the Ethereum
ecosystem.

\*

Bull market cycle: Bitcoin is the leader in terms of market cap at around USD 1 trillion and the entire
crypto currency market is influenced by – ‘The Bitcoin halving event’, which means Miner’s rewards
are cut by half during this event i.e. supply of tokens leaching into the system is reduced thereby
having a positive effect on price per BTC.

Ethereum holds second place at around USD 400 billion due to its network effect i.e. real time
applications running on its ecosystem.

\* out of place I think. This doesn’t really relate to the previous or the next point. Maybe consider
adding with super cycle info.

Fast forward to present day: 3rd generation blockchains are now addressing few drawbacks of POW:

\\ consider using the Latest instead of Fast forward to present day

 Throughput: i.e. can transaction volume be increased from 6-50 transactions per minute up
to 1 million t/pm? Increased volume could help reduce cost per transaction.
 Scalability: The first two generations lacked an architecture that facilitated smooth roll out
of updates.
  Sustainability: POW demands participants (nodes) to expend heavy computation power to
verify blocks.
\\ talk more about how this relates to power uses and energy costs stating its real world
implications.

Two such 3rd generation blockchain’s are Cardano (Token: ADA Current market price: £1.3 *Add date
for both for accuracy*) and Vechain (VET £0.13p).

Highlights of Cardano: Market cap USD 58 Billion

 Founded by Charles Hoskinson: Ex co-founder of Ethereum and his vision is to bank the
unbanked and is currently implementing real time solutions in Ethiopia with the African
government. Adding more credibility to the project.
 Cardano is built on a sustainable mechanism called Proof of Stake and has an Ethereum
converter that enables developers to migrate to Cardano. It has high potential to feed into
Ethereum’s market cap.

Highlights of Vechain: Market cap USD 16 Billion

 Founded by Sunny Lu: Ex CTO of Luis Vuitton China and he specialises in supply chain
management. The idea is to have QR codes linked to its blockchain. For example – a
consumer could verify whether a wine bottle is authentic just by scanning its QR code which
will then outline its production and logistics journey.
 Vechain runs on a sustainable mechanism called Proof of Authority.
 Companies such as – Luis Vuitton China, DHL, BMW, and Salesforce are just few big names
that have joined its ecosystem.
 A cloud deployable model of Vechain is in development and made available on Amazon
cloud services AWS.

The investment plan:

History can help anticipate that this bull market cycle could be in play until October 2021. Both
projects have at least shot up by 500% since January. Though the appreciation has been exponential
– there’s more room for growth:
Bitcoin has honestly become the Xerox in place of photocopy however the smart money has already
been invested in 3rd generation blockchains and I feel we’re just about to enter the mania phase.

Even though both blockchains are working on their core goals as highlighted earlier – their platforms
have the infrastructure and are in talks to onboard ‘DeFi Applications – Decentralised Finance’. This
is also referred to as the credit card era in the blockchain space which could further provide rocket
fuel for appreciation.

Investment and growth metrics:

Total investment = £10,000

Metric VET ADA
Fund Allocation £7000 £2000
Current Market Price (CMP) * add date * £0.13p per VET £1.3 per ADA
Total Tokens Purchased at CMP 53,800 Tokens 1500 Tokens
Expected appreciation per Token £0.72 per VET £5.5 per ADA
Value of Allocated Fund post Appreciation £38,700 £8,250
Profit £31,000 £6,250

Total Profit by End of Year = £37,250

Balance fund = £1000

The balance fund can be allocated to upcoming projects onboarding either of these blockchains.

One such project is called World Mobile Token launching on Cardano – a telecom company with the
vision to enable internet and tele connectivity across Africa: https://worldmobiletoken.com

\\ maybe mention allocation size

\\also discuss this to be a longer term investment with results shown over a prolonged period but
promising

An uncommon phenomenon may take place this year called ‘super cycle’ which essentially means
the bull market cycle could be extended to end of 2022. This must be constantly tracked by keeping
updated with the news and assessing market behaviour.