Mapping out bitcoin's supply chain | Morgan Stanley's Bitcoin report | Greyscale reports $1.5B inflows from institutions investing in crypto

Bitcoin $6,379                    Ethereum $198.67 
Crypto Mkt Cap $205B              BTC Dominance 53.90%

“It is the 10th anniversary of the bitcoin white paper. The ‘internet’ at 10 (1981) was college CS departments exchanging email/files, static IP, editing hosts.txt by hand. Chat would happen in 3 years. World Wide Web was internet at ~20. A graphical browser was a couple years later.” — Steven Sinofsky, Board Partner Andreessen Horowitz

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The Big Block

The Block complements our writings and analyses with charts, graphs, and maps is to give our readers a comprehensive look at the complex crypto ecosystem. Even the veteran Bitcoiner can get lost in the twist and turns that is the bitcoin labyrinth. Here, we take a high-level approach to walk through and map out what we are calling the bitcoin supply chain. That is to say, the movement of bitcoin from when it is first mined to when it is spent.

At the start of the bitcoin supply chain is the bitcoin network. With special-purpose machines, folks “mine” bitcoins by solving cryptographic puzzles and sell them to make up for the energy expenditure of the network. Some of the largest buyers of bitcoins are exchanges and over-the-counter markets. Over-the-counter (OTC) markets enable traders to buy and sell large amounts of bitcoin without necessarily informing the general markets. OTC markets then supply those bitcoins to businesses that require large quantities, including exchanges, ATMs, and investment-product providers. These businesses go on to supply bitcoin to users and investors.

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Around The Block

Morgan Stanley report: The bitcoin thesis is ‘rapidly morphing’, cryptos highly correlated

The research division of Morgan Stanley, one of the major investment banks, released a new 50-page report titled: “Update: Bitcoin, Cryptocurrencies and Blockchain” on Wednesday. The new report is an update to the first version titled “Bitcoin Decrypted: A Brief Teach-in and Implications”, which was released at the peak of the bubble in December. Morgan Stanley has been researching cryptocurrency and blockchain for quite some time; it already released 15 research reports with the oldest one dating to May 2017. — More

$1.5 billion Grayscale reports record inflows, as institutions pour money into the crypto fund manager

Grayscale, the digital asset asset manager, saw year-to-date inflows hit $330 million, according to its Q3 Investment Report.

The report, released on Thursday, provides an overview of the firm's business over the last three months. Per the report, Grayscale raised $81.1 million in Q3. The $330 million figure outperforms inflows through three quarters in previous years. In the same amount of time, the firm brought in a mere $25 million in 2017 and $17 million in 2016. "This marks the strongest year-to-date inflows through September that we’ve experienced during any calendar year since the inception of our business." — More

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