Mapping out bitcoin's supply chain | Morgan Stanley's Bitcoin report | Greyscale reports $1.5B inflows from institutions investing in crypto
|Nov 1, 2018||Public post|
“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
The Block wants to understand who our readers are. Please take a few minutes to respond to our short survey. Your participation will give us a better understanding of our readers and what interests them! Please note that the survey results will be anonymized and aggregated. Please take the survey here.
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.
Read More on The Block (1 Minute)
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
Tether announces a banking relationship with Deltec Bank and confirms reserves — More
Hong Kong proposes new rules for cryptocurrency exchanges — More
USDC competes head to head with Paxos, Gemini falls behind — More
10 reflections as bitcoin turns 10 — More
CryptoKitties raises $15M despite low daily user count — More
Coinbase’s head of trading is out after six months — More