LayerAI is a blockchain network that focuses on AI models and web3 services. Learn more about how it works here.

The soaring interest in artificial intelligence (

) technology has led to some intriguing developments in the crypto community. One of the latest projects looking to profit off of AI models is LayerAI, whose system hopes to explore some of the many applications of AI. In addition to offering data monetization options to users, LayerAI also plans to offer a broad range of other private 

) services. What is Layer AI's mission, and how does its ecosystem run? Explore this guide to find out the answers to these questions and more.

 is a blockchain network that focuses on AI models and 

 services. The ecosystem contains multiple components, including a scaling system, a VPN, a DEX, an NFT marketplace and a data monetization app.

, which was run by Jamila Jelani. Little is known about this initial founder of the system, who is no longer a part of the LayerAI team. LayerAI's official founder is 

, a full-stack developer who has worked on various crypto projects since 2021. He’s joined by other developers and marketers who have an interest in 

. Inspired by the growing fascination with AI, they decided to create a global data marketplace powered by AI and crypto technology.

 is to create a system for supporting the data economy. The LayerAI team believes that data is an emerging asset class that's being overlooked. There’s vast data collected during everyday electronic usage, and companies are extremely interested in purchasing behavioral data to assist with their marketing and product development. LayerAI aims to create robust cloud computing services that can handle the vast data collected, and reward users for contributing data to the LayerAI economy app.

In addition to promoting the data economy, LayerAI is also interested in a variety of other tools that can incorporate AI models. Its team hopes that their excellent data compression techniques can also prove valuable for other types of in-demand crypto applications. To achieve this goal, they've created a LayerAI ecosystem that explores many different services, such as private ZK-rollup technology and VPNs.

 Ethereum blockchain. This means that it has a network that runs parallel to Ethereum. LayerAI uses Ethereum's processing powers to provide a secure, reliable framework for its robust cloud computing services, but LayerAI also has its own software and protocols that process data in new and unique ways. Its Layer 2 technology allows LayerAI to do some unique things, such as set up a system for publishing data on-chain and use 

 to provide excellent data compression techniques.

 (CDK). This modular software toolkit provides a helpful way to manage the company's back-end infrastructure and data capsules. It ensures all of LayerAI's designs have 

 compatibility, but the CDK also offers them the flexibility to set their own gas fees and maintain self-sovereignty. 

LayerAI's global data market involves a broad range of features that take advantage of their compressed transaction data. The following are the main ways that data miners can interact with the LayerAI ecosystem and turn behavioral data into a valuable asset.

 program consists of a VPN with rewards for users. People browse the internet through 

, which collects and packages their information into data capsules. LayerAI then monetizes this data and passes on rewards to each user who provides the network with a valuable asset in the form of their collected data. The advanced data assets system weights rewards based on a user's level of participation.

) can store activity data. Users retain control over their data, and can choose to sell it to whichever companies within the LayerAI system that they prefer.

 allows users to collect the Data Capsule NFTs they need in order to earn a more substantial digital asset reward. It also helps to validate and secure the LayerAI network.

LayerAI hopes to create a global data marketplace where data is treated as an emerging asset class. People who use LayerAI services, such as their zero-knowledge proofs and compressed transaction data, can then choose to monetize this data on the marketplace. 

Since launching its network, LayerAI has shifted its focus to its ecosystem. There aren't any plans to upgrade the underlying LayerAI system or update the data economy app in the near future. Instead, the platform is looking for more products to add to its network. 

In terms of future plans, LayerAI seems to be pivoting away from its focus on the global data market and instead embracing other industry trends. According to LayerAI’s road map, its next goal is to tackle 

. The hope is to eventually design an animation studio and use AI models to create 2D and 3D games built on the blockchain. 

The LayerAI ecosystem uses several different types of tokens to handle all of their advanced data assets. 

LAI is a multi-value gas token. People can use it to pay for fees, and can also stake it to help validate the network. The LAI token also provides liquidity for the network so that data miners can process things more efficiently.

The DATUM token is a reward token for people with Data Capsule NFTs. People who contribute data by using LayerVPN and have “equipped” Data Capsule NFTs earn DATUM, which they can exchange for other valuable tokens. The DATUM token is primarily earned through LayerAI's data economy app.

. LayerAI is distributing these tokens according to the following plan:

LAI has seen a lot of price movement since it was released as "GPT" in 2023, going as high as $0.14 and as low as $0.006. In March 2024, LAI had a particularly notable jump in price after news of the network’s rebranding from CryptoGPT to LayerAI, which may have led to many users’ bullish outlook on LAI. Pricing data analysis from CoinCodex 

 may lead to further price leaps for LAI, which may even reach $0.13, close to its ATH, by the end of 2025 and $0.17 by 2029.

DigitalCoinPrice is as positive as CoinCodex, with 

 LAI price will reach $0.07 by the end of 2025 and $0.16 by 2029.

Looking to trade LayerAI tokens? Bybit now offers the 

. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the LAI/USDT Spot trading page. Since its rebranding, LayerAI has been working to get its LAI token listed on major exchanges. One of the easiest ways to purchase it is through Bybit.

LayerAI is emerging as an intriguing project, particularly due to its focus on AI and web3 gaming — a combination that’s gaining a lot of attention in the tech world. While the token shows potential and is experiencing some upward trends, it's important to recognize that its ecosystem's performance can be variable. 

Investing in LayerAI could offer significant returns, but it comes with inherent risks. The value of the LAI token isn’t yet stable, and could be subject to substantial fluctuation. Interested investors should approach LayerAI with cautious optimism, and are strongly advised to conduct 

 and consider market conditions meticulously before making any investment decisions.

While LayerAI has yet to prove it can offer substantial digital asset services, its idea of publishing data on-chain and compensating users for their behavioral data with the LayerAI economy app has captured the attention of many investors. In addition, the impressive growth of LAI has helped make it a token worth watching.

Intermediate

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LayerAI (LAI): Data Monetization With ZK-Rollup Technology

The ETHBTC (ether-bitcoin) ratio has hit its lowest point since April 2021, reflecting a nearly 16% decline this year.

The SPX index is down 0.21%, recent economic indicators presented a mixed picture, showing a decrease in jobless claims, unexpected changes in import and export prices, underwhelming housing data, and stagnant industrial production. The broader cryptocurrency market is down, with Bitcoin and Ether dropping by 1.39% and 2.82%, respectively in the past 24 hours.

Today’s outperformer is LINK, which jumped 13.7% after DTCC Partners with Chainlink and Major Banks to Tokenize Mutual Fund Data.

Chainlink (LINK), launched on June 2017, is a cryptocurrency platform that connects smart contracts on blockchain with external data and services. It offers hybrid smart contracts and cross-chain interoperability. The Depository Trust and Clearing Corporation (DTCC) has collaborated with Chainlink and several major U.S. banks on a successful pilot, Smart NAV, to tokenize mutual fund data. This initiative, leveraging Chainlink's blockchain capabilities, contributed to a significant rise in Chainlink's cryptocurrency, LINK, which surpassed $14. The 

 showcased the potential for real-time, automated blockchain-based data dissemination, reducing complexities and enhancing data management across financial platforms. Despite a positive response and a boost in trading volume, LINK still faces challenges in fully recovering from previous market losses.

Check Out the Latest Prices, Charts, and Data of 

 has hit its lowest point since April 2021, reflecting a nearly 16% decline this year. This drop is attributed to various factors, including uncertainties around the approval of a spot ETH ETF in the U.S., competition from other blockchain networks like Solana, and a shift in investor preference towards bitcoin. Data shows substantial outflows from ether-based exchange-traded products, while bitcoin products have seen significant inflows. The rising market share of Solana in decentralized exchange volumes further challenges Ethereum's dominance. Regulatory uncertainties and negative sentiment towards ether, amplified by competitors and market dynamics, also contribute to its current underperformance. Additionally, ether has become inflationary, which reverses its previous deflationary trend and adds to the bearish outlook.

Bitcoin (BTC) dropped 1.47% on Thursday amid hawkish Federal Reserve commentary, reducing hopes for a September rate cut. Despite the downturn, U.S. BTC-spot ETFs saw continued inflows, reflecting persistent investor optimism about future Fed actions. Hawkish remarks from FOMC members indicated a potential sustained high-rate path, affecting market sentiment even as the Nasdaq fell. This mixed financial landscape suggests a cautious outlook for BTC, with investors closely watching further Fed communications and economic data.

The Ethereum layer-2 network, Blast, has announced a postponed 

 date for its BLAST token, now set for June 26, later than initially planned. To compensate for the delay, Blast will increase the airdrop allocation. The network plans to conduct two additional distributions of Blast Gold points, which are awarded to developers of decentralized apps on the platform and can be passed on to their users. The BLAST token airdrop will allocate half of its tokens to these developers and the other half to early users who bridged funds to the network before its mainnet launch in February. The network, known for its user incentives, has successfully leveraged such strategies to boost engagement and value, similar to its precursor, the NFT marketplace Blur.

Beginner

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Ether-Bitcoin Ratio Hits Three-Year Low Amid ETF Uncertainties and Rising Competition from Solana

Uncover how StrikeX (STRX) is revolutionizing finance with its innovative tokenization platform, web3 wallet, and DEX, empowering global market access and liquidity.

 (RWAs) is one of the emerging narratives in the 

 space. Not only will tokenization make the RWA global markets globally accessible, but it will also bring liquidity to a market with traditionally illiquid assets.

As such, blockchain project StrikeX is creating an innovative trading platform to facilitate trading RWA assets, including stocks, commodities and real estate. It also features a 

) that lets you immerse yourself in the world of web3.

Let’s examine StrikeX and its efforts to impact the global financial landscape through the tokenization of assets using 

StrikeX is a blockchain-powered ecosystem that combines 

 solutions to harness the power of tokenization needed to drive the next generation of financial markets. 

The project aims to provide crypto enthusiasts with all the tools they need to succeed in the crypto market.

Founded in 2021 by Joe Jowett and Kishan Vadgama, StrikeX has recently revamped its road map to encompass its growing vision for the web3 space. Upon launch, StrikeX released its wallet, which lets you earn money for using it. It also introduced a DeFi exchange, a trading platform known as TradeStrike, a 

 blockchain network and a stock token bridge to power the tokenization of assets.

, which now owns a 33% stake in StrikeX Technologies. The strategic partnership will facilitate the tokenization and self-custody of assets through automated 

, while CMC Markets will provide the project's foundation of a traditional regulated firm.

The StrikeX ecosystem is powered by its native token, STRX.

As a hybrid blockchain ecosystem, StrikeX consists of the following key features.

As StrikeX’s flagship trading platform, TradeStrike combines the features of the global stock market with those of a centralized crypto exchange. It acts as a hub for trading digital assets, including stocks, commodities, real estate, crypto tokens and non-fungible tokens (

Built to embrace tokenization technology, TradeStrike is designed to offer investors a wide range of assets. Initially, the platform will facilitate trading crypto products and public stocks, but will diversify to add more products to its portfolio.

Since TradeStrike is powered by blockchain technology, it’s secure, fast, transparent, liquid, decentralized, unlimited by geographical boundaries and enables fractional ownership of assets.

StrikeX Wallet is a simple-to-use, secure and slick DeFi wallet designed to facilitate quick and efficient crypto transactions. The wallet enables you to buy and sell crypto, make fiat-to-crypto deposits and withdraw crypto-to-fiat to your bank. You can also make cross-chain swaps within the wallet and even track the cryptocurrency market.

StrikeX upgraded its wallet to V2 to integrate more protocols, such as 

, and includes a marketplace for NFTs and decentralized apps (

 rewards simply for using your StrikeX Wallet. The weekly airdrops will be based on a community vote. All you need to do in order to qualify is carry out swaps using your wallet.

 DEX. It allows you to carry out DeFi transactions such as swaps and trades. TradeX ensures smooth trading with features like advanced charting, unlimited comprehensive indicators, detailed time frames and real-time market monitoring.

The powerful and intuitive DEX is designed to make DeFi trading easy and efficient by allowing you to connect your StrikeX Wallet.

StrikeX has been working on its own private 

-compatible Layer 1 blockchain network to help unify its growing ecosystem of web3 products. The blockchain will adopt a proof of authority (

) consensus mechanism for shorter confirmation times, improved security and reduced energy consumption.

As a private blockchain, StrikeX will provide a robust blockchain infrastructure for web3 service providers to access secure and highly scalable services.

 leverages blockchain technology to facilitate the burning and minting of collateralized stock tokens. Once released, the bridge will act as a seamless link between traditional finance (TradFi) and StrikeX’s PoA blockchain.

STRX is the native currency powering the StrikeX ecosystem. As a 

 utility token, STRX is used for various functions on the platform, including:

STRX has a maximum supply of one billion tokens, of which 11.6% have been burned, while the remaining 87.1% are in circulating supply. Furthermore, STRX implements a 3% selling tax on its DeFi tools, used to power the platform’s buy-back and burn initiative, add to the liquidity pool and for marketing purposes.

As of May 16, 2024, the price of STRX was $0.0627, an increase of over 233,000% from its ATL of $0.00002651 on Nov 22, 2021, and an 81.3% drop from its ATH of $0.3322 the same day.

Price prediction platforms are generally bullish on STRX’s price. According to CoinCodex, 

 a high of $0.32 in 2025 before dropping to $0.249 by 2030. Meanwhile, price analysts at DigitalCoinPrice 

That said, these price predictions don’t guarantee the future STRX price. We highly recommend you

 before investing in StrikeX or any other 

Tokenization of real world assets is currently a hot narrative in the crypto and finance worlds. StrikeX's strategic position in this niche will give investors and market participants a convenient way to tokenize assets and make a profit. Furthermore, the platform’s growing suite of products places it in a good position to do well in the highly competitive world of decentralized finance.

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StrikeX (STRX): Reshaping Finance With Tokenization

Imaginary Ones is a web3 ecosystem known for its cute and family-friendly NFTs. Learn more about how it works in this article.

 available in the digital landscape, it can be difficult for projects to stand out. 

 hopes to rise above the competition by offering users additional features, such as casual gaming and digital entertainment. Is this system a complete game-changer for NFT digital assets? 

This guide will give you all the details about the Imaginary Ones world so you can see for yourself whether it's just art — or a fascinating new investment opportunity.

 ecosystem known for its cute and family-friendly NFTs. However, it's not just art and digital collectibles. The Imaginary World ecosystem also includes complex lore, entertaining games and exciting community events.

Imaginary Ones’ startup has a unique backstory behind its NFT digital assets. Its incredible journey started when it was launched in 2022 by animation artist Clement Chia and business director David Lee. Their focus on art and digital entertainment proved to be popular: in 2022, Imaginary Ones made the news with its 

 and partnerships with major designer brands such as Hugo Boss. Since then, Imaginary Ones has pivoted to offer users a variety of other features. Their system is now focusing on providing a broad range of Web 2.0 and web3 services. 

Imaginary Ones aims to provide a comprehensive web3 platform built around a cohesive set of lore. The Imaginary Ones team’s realization that many NFT projects have an initial burst of popularity (and then fail to maintain value once investors get bored) has shown them that in order to stay relevant, they need to offer their users more than just digital collectibles. To achieve this goal, Imaginary Ones has set out to create a gaming ecosystem and digital entertainment platform. They hope that their cute and friendly characters will provide users with immersive experiences that keep them coming back to the Imaginary Ones system.

Imaginary Ones is built on the Ethereum blockchain. Each Imaginary Ones NFT character is a blockchain-based token that ensures its owner has true ownership over the token. The ecosystem also uses blockchain technology to store data about its virtual worlds, provide a secure gaming experience and create tokens with which users can purchase items. 

The Imaginary Ones ecosystem also employs traditional Web 2.0 technology, with a software framework that runs the mobile gaming options and creates an easy-to-use interface for people to interact with the Imaginary World.

Imaginary Ones takes users on an incredible journey through a variety of entertaining systems. Here are the main features it offers.

Imaginary World is a dynamic, open-world setting for a variety of stories. Characters among the 8,888 personas in the Imaginary Ones NFT collection take part in lore, events and games, and the Imaginary World metaverse offers merchandise and intriguing content to explore. 

 is Imaginary World’s second NFT collection. Each NFT is a carefully curated, car-based piece of art that creates a unique digitally animated vehicle.

 is a set of 12 unlockable NFTs. Players participate in Imaginary Quests as part of the storyline, and over time they get to mint Imaginary Artifacts. These special NFTs unlock additional story levels, and provide additional experiences for players to enjoy.

 is thoughtfully designed to be part of the Imaginary Ones ecosystem. In addition to having sole ownership of an exclusive digital canvas, CMTTAT Foundation Piece owners also get special perks within the Imaginary World.

Any owner of an Imaginary Ones NFT can choose to 

 it in the Imaginary Ones world. Staking moves the NFT from your wallet to the website. You then get to participate in reward-sharing schemes and earn profits from your NFT.

 is an exciting program that encourages users to collect multiple NFTs. The site prompts users to obtain an NFT from each category, Having a squad assembled allows users to earn Rainbow Bubbles points that eventually turn into IO tokens.

 hold unknown prizes for users. Crates are distributed as part of the staking program, with users potentially receiving tokens, game assets and NFTs from them.

Imaginary Ones provides a complete gaming landscape for people to explore the Imaginary Ones universe. 

 is a mobile endless runner game. In addition to mobile games like 

, Imaginary Ones also features the Imaginary Carnival, which contains a whole host of interactive mini-games. These immersive experiences allow users to collect Bubble points and earn further exciting rewards.

As part of its upcoming token generation event, Imaginary Ones is scheduling an 

. BUBBLE tokens will be distributed to participating customers to reward them for their input in the Imaginary Ones ecosystem. In order to become eligible for the airdrop, you can refer friends, hold certain NFTs and mention Imaginary Ones on social media, all of which can help you earn points. 

Many of the Imaginary Ones Bubble Points rewards from the system's gaming experience options will also be converted to BUBBLE tokens. To start earning points for the airdrop, all users need to do is visit 

In just a few years, Imaginary Ones has built a complete blockchain ecosystem and attracted considerable attention from investors and crypto enthusiasts. The coming year (2024) is a game-changer for the ecosystem, since it’s mostly going to focus on the launch of the BUBBLE token. Imaginary Ones will be marketing this event with airdrops and incorporating it into their system. Toward the end of 2024, Imaginary Ones will further expand its gaming landscape by completing the public launch of the Imaginary Carnival gaming ecosystem and 

 token that will fuel the Imaginary World ecosystem of digital collectibles and casual gaming. This coin’s total supply is 

, but almost none of these have been minted and released yet. Once Imaginary Ones does release more BUBBLE, they plan on distributing the tokens as follows:

Looking to trade Imaginary Ones tokens? Bybit now offers the BUBBLE/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

 where you can earn a share of the 260,000 USDT prize pool.

, in which the first 8,000 new users who complete the following two steps between May 13, 2024, 10AM UTC and May 27, 2024, 9AM UTC will receive 20 USDT each:

, is being held from May 14, 2024, 10AM UTC through May 27, 2024, 9AM UTC. Simply trade at least 1,000 USDT worth of BUBBLE on Spot during the event period to grab a share of the 70,000 USDT prize pool.

Please note that your ranking will be determined by your trading volume. If you rank higher, you’ll receive more rewards in return. Rewards will be capped at 1,000 USDT per user.

, will be held from May 15, 2024, 10AM UTC through May 22, 2024, 9AM UTC. Join the lucky draw to win USDT airdrops. New users and referees can win from the 30,000 USDT prize pool.

Although BUBBLE might be a new and unproven token, it's worth exploring. In the past, the IImaginary Ones universe of digital experiences has done a great job of attracting buyers. Their NFT collection has performed well, and they draw a lot of 

 to their metaverse. This is likely to translate to some impressive price increases for the BUBBLE token. 

However, crypto investments always have some risks, especially when a new token without a history of stable pricing is involved. Investors need to 

 BUBBLE before buying it, and it's wise to avoid putting more money than you can afford to lose into any single crypto.

Imaginary Ones has managed to take a simple NFT concept and turn it into complex virtual worlds, mobile gaming systems and exciting digital experiences. By using a cute and cohesive concept to explore blockchain technology’s various facets, the project has captured a lot of fans. With the release of its very own cryptocurrency, Imaginary Worlds hopes to take its system to the next level.

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Imaginary Ones (BUBBLE): Making Web3 Fun and Accessible

Bybit Learn

Crypto Insights

Learn more about Bitcoin halving and how it impacts the crypto industry with insights from our guest author, Will Canny.

Bitcoin's status as the "gold" of cryptocurrencies has gradually solidified. One mechanism that ensures Bitcoin's scarcity and value is the Bitcoin halving, which occurs approximately every four years. At first glance, Bitcoin halving might seem to have a negative impact on the price of Bitcoin. However, the reality is not entirely so. Bitcoin halving is a double-edged sword for people with different backgrounds. This article introduces what Bitcoin halving is, while also addressing the most pressing concerns of crypto investors today.

. Its underlying code dictates that only 21 million Bitcoins will ever exist. This limited supply ensures Bitcoin's economic scarcity, supporting its value system.

, with the existing 21 million bitcoins expected to be mined by 2140. In other words, the last new Bitcoin is expected to be produced by 2140, with all remaining bitcoins to be mined before this time. Currently, miners have excavated nearly 90% of the total Bitcoin supply, mining an average of about 900 bitcoins daily.

To maintain the issuance rate and increase scarcity, the number of Bitcoins issued in each block is periodically reduced. This process of reducing Bitcoin issuance is known as Bitcoin halving.

After a predetermined block height (used to denote the number of a specific block), the number of bitcoins issued in each block is reduced to half of the previous amount. A new halving occurs every 210,000 blocks, or about every four years.

The most recent halving (in 2020) reduced the number of bitcoins issued per block from 12.5 to 6.25. This means miners receive a reward of 6.25 bitcoins per block mined, instead of the previous reward of 12.5.

 has significant implications in terms of economics and sustainability.

In terms of economics, halving creates scarcity for Bitcoin, making it more valuable as "the rarer, the dearer." With fluctuating demand, Bitcoin halving reduces the speed of Bitcoin supply. Over the years, demand for Bitcoin has continuously grown while the supply rate has consistently declined.

In summary, this mechanism solidifies Bitcoin's status as a store of value. The reduction in supply speed, combined with growing demand, ensures that Bitcoin's value increases over time. Given market sentiment and the desire for scarce goods, the impact of halving on Bitcoin's value goes beyond supply-and-demand economics.

It’s currently estimated that around 4 million bitcoins have been permanently lost, due to forgotten wallet information, lost hard drives or the deaths of their owners. Most of these bitcoins are irretrievable. Considering the rate at which bitcoins are permanently lost, Bitcoin is a 

 currency, and halving further increases this scarcity.

From a sustainability perspective, Bitcoin mining incentivizes miners to validate blocks and protect the Bitcoin network. Miners ensure the blockchain is safe from malicious attacks. As long as Bitcoin issuance continues, miners will be attracted to participate, thereby securing the Bitcoin blockchain.

Halving maintains supply and sustains mining. Halving, by creating scarcity, drives up value and slows down the rate of Bitcoin issuance, attracting more miners to protect the blockchain for longer periods.

The above chart shows the changes in tokenomics and miner rewards caused by Bitcoin halving. With each halving, block rewards continue to decrease as the supply gradually slows.

It’s estimated that the next Bitcoin halving will occur on May 4, 2024, at block height 840,000. After that time, the current Bitcoin block reward of 6.25 will be reduced to 3.125.

The previous Bitcoin halving occurred on May 11, 2020, at block height 630,000, after which time the Bitcoin block reward was reduced from 12.5 to 6.25 Bitcoins.

The Bitcoin halving algorithm was confirmed and developed in the currency’s original version Bitcoin’s white paper explains why the issuance of Bitcoin continually decreases, as well as the timetable for halving events.

Four years after the creation of Bitcoin's "genesis block," and after more than 10 million bitcoins had been mined (with 210,000 blocks), the first halving occurred on November 28, 2012, reducing the mining reward from 50 bitcoins per block to 25.

Following is a table of Bitcoin halving dates:

Impact of Bitcoin Halving on Bitcoin’s Price

To different people, halving has its pros and cons, thus acting as a double-edged sword.

For investors, halving means that the frequency of new Bitcoin production decreases, and miners are less inclined to sell their bitcoins. Historical data shows that this anticipated scarcity positively affects investor psychology. Investors expect the value of Bitcoin to rise, potentially leading to more buying activity.

Past halving events have produced positive effects, though the impact of halving on Bitcoin's price can vary with market conditions.

Before the 2020 halving, due to investor behavior and subsequent speculation, the price of Bitcoin rose by about 40%. After the halving, the value of Bitcoin tripled from its previous historic high, reaching a new peak of $67,000.

For miners, halving ultimately means a reduction in rewards. Establishing and maintaining a Bitcoin mining facility is an expensive endeavor, and miners expect block rewards to at least cover these expenses.

How Reduced Rewards Affect Miners’ Expenses

When rewards are halved, miners' income is reduced by half. Considering the current value and the cost of operating a Bitcoin mining farm, many miners might shut down their mining if the calculated mining revenue cannot sustain their setups.

As miners cease activities, the mining hash rate (which refers to the total computational power used to mine and process transactions on a 

 blockchain like Bitcoin) is expected to decrease, which in turn could slow down the Bitcoin network and lead to longer transaction times. If the price of Bitcoin continues to rise, and miners deem it profitable to operate, the hash rate may return to its previous level.

According to a research report published by JPMorgan in mid July, since the next halving event is expected to arrive in the second quarter of 2024, Bitcoin’s hash rate continues to hit all-time highs, escalating competition among miners.

The article’s team, led by analyst Nikolaos Panigirtzoglou, wrote, "Although Bitcoin halving is considered to have a positive impact on the price of Bitcoin, as historically production cost has acted as a floor, it poses a challenge for Bitcoin miners."

Financial Market Predictions for the Next Bitcoin Halving

JPMorgan noted in its report that the next Bitcoin halving event is a stress test for miners, because miners' income will decrease as the cost of producing Bitcoin increases. The article states that miners with lower electricity costs will have an easier time surviving, while miners with higher electricity costs may find themselves in a difficult situation after the halving.

It’s estimated that a $0.01 change in electricity cost per kilowatt-hour (kWh) could lead to a $4,300 hike in the cost of producing Bitcoin, effectively increasing the production cost to $8,600 and thus leaving high-cost miners more vulnerable.

The report also points out that a sharp increase in hash rate means intensified competition among Bitcoin miners, with more mining equipment being deployed.

However, the report adds that, after the halving event, "for the hash rate to continue rising at the same rate, the price of Bitcoin needs to continue to rise above its production cost, or transaction fees need to increase significantly to offset the reduction in issuance rewards, which is unlikely."

Overall, the market remains optimistic about the large Bitcoin mining market. According to a research report by Bernstein, publicly listed Bitcoin (BTC) mining stocks in the United States, which suffered heavy losses in the 2022 cryptocurrency turmoil, have more than doubled this year.

This recovery is mainly being driven by two factors. First, improved market sentiment led to a strong rise in Bitcoin prices, due to investing institutions like BlackRock and Fidelity filing for 

 (ETFs). Secondly, some Bitcoin miners are leveraging opportunities in the high-performance computing and AI fields as a "revenue diversification strategy."

The report cited above further states: "This is a unique survival battle, where only top miners with low costs and conservative debt conditions can survive when Bitcoin prices exceed production costs, consolidate capacity and market share, and achieve extraordinary profits." It states that miners with high debt and weaker positions cannot survive, and may "go bankrupt during the cryptocurrency winter," citing the recent bankruptcy case of Core Scientific (CORZQ).

Currently, the first round of consolidation has been completed, and surviving miners are now increasing capacity to prepare for the upcoming Bitcoin halving.

What Happens When All Bitcoins Are Mined?

You may wonder how miners on the Bitcoin network will be compensated for protecting Bitcoin’s blockchain after its supply is completely mined by 2140. 

When all bitcoins have been mined, miners' incentives will be maintained through Bitcoin blockchain transaction fees paid by users. This shift means that instead of earning new bitcoins as a reward for mining, miners will rely on transaction fees as their main source of income.

This transition is anticipated to ensure the continued operation and security of the Bitcoin network. Even after the last Bitcoin is mined, the network will require miners to process transactions and secure the blockchain. The expectation is that transaction fees will become sufficiently rewarding to incentivize miners to maintain their operations.

This model suggests a future where the Bitcoin network continues to function and remain secure, despite the lack of new bitcoins to be mined. This dynamic aligns with Bitcoin's design as a deflationary currency, one whose total supply is capped at the 21 million limit.

The evolution of the Bitcoin network to rely entirely on transaction fees is a critical aspect of its economic model. It ensures that as Bitcoin becomes more scarce and potentially more valuable, the network can sustain itself without the need for new bitcoins to enter circulation.

The reliance on transaction fees also means that the dynamics of the Bitcoin network could change. If transaction fees become the primary incentive for miners, there may be implications for transaction costs and network congestion. However, developments such as the 

 and other scaling solutions are aimed at addressing these potential issues, ensuring that Bitcoin can continue to serve as a viable digital currency and 

In summary, the completion of Bitcoin mining won’t spell the end of the Bitcoin network. Instead, it will mark a transition to a new phase of operation, whereby transaction fees play a central role in ensuring the network's security and functionality. This transition is an integral part of Bitcoin's design, reflecting its sustainable and forward-thinking approach to digital currency.

Understanding Bitcoin Halving: Its Reasons, Schedule and Impact on the Crypto Industry

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