Blockchain & Web3 Weekly Bytes Edition #44

AI Models Tokenized, Bitcoin ETFs Lead Gold & Last Issue of 2024!

December 21, 2024

Hello Fellow Enthusiast,

Welcome to Edition #44 of Blockchain & Web3 Weekly Bytes! This week, Bitcoin ETFs continue to outpace gold ETFs in assets under management, showcasing growing interest from traditional investors. NFTs are seeing a resurgence in activity, and Ohio lawmakers propose the creation of a state-backed Bitcoin reserve—a potential milestone for public crypto adoption.

Tech Spotlight: Tokenized AI models are changing how creators and developers collaborate, offering new ways to manage access and value.
Weekly Highlights: The SEC approves Bitcoin-Ethereum combo ETFs, India clarifies tax rules on crypto gains, and a European MP advocates for a Bitcoin reserve strategy.
Affiliate Spotlight: Celebrate the holiday season with 101 Blockchains' exclusive certification discounts—perfect for anyone looking to deepen their knowledge in blockchain and Web3.
Chart of the Week: Bitcoin's dominance over gold ETFs in record time—highlighting its rise in traditional markets.

This is the final edition for 2024, and I'll return on January 4th, 2025, with novel updates and insights. Wishing you a joyful holiday season—see you in the new year!

🧠 Weekly Trivia

Which blockchain was the first to introduce the concept of "smart contracts" as a core feature?

A) Ethereum
B) Bitcoin
C) Cardano
D) Polkadot

*Find the answer at the end of this newsletter.

🌟 Tech Spotlight – Tokenized AI Models – Where Blockchain Meets AI

Artificial intelligence has come a long way, but what if owning a piece of an AI system was possible? Tokenized AI models turn this concept into reality, offering a way for developers, data providers, and even users to share the benefits of AI systems.

What It Entails

Tokenization applies blockchain technology to AI models, creating a transparent, shared structure of ownership through digital tokens. These tokens can represent contributions, rights to revenue, or decision-making authority.

Take an AI built for personalized education. Teachers who provide insights, developers who code the platform, and data contributors could all hold tokens, aligning everyone’s success with the AI’s growth.

Key Examples

SingularityNET: AI services are tokenized here, enabling open collaboration between developers and users.
Fetch.AI: Focused on smart city applications, allowing tokenized AI solutions for resource management.
Ocean Protocol: Makes it easier to share and monetize datasets used to train AI while maintaining data privacy.

Why It Matters

Unlike traditional setups where a single company owns everything, tokenized AI models distribute rewards and governance. This opens doors to fairer systems, encourages collaboration, and ensures that contributors of all sizes benefit.

Challenges and Road Ahead

Questions about governance, intellectual property, and ethical AI usage remain. But the potential is too big to ignore. From education to environmental management, tokenized AI is showing how decentralized ownership can drive collective progress.

📰 This Week’s Blockchain and Web3 Highlights

Bitcoin Market Cap Hits New High Against Gold: Bitcoin now represents 14% of gold's market cap, achieving an all-time high. Bitcoin ETFs have also surpassed gold ETFs in assets under management (AUM).

Spot Bitcoin-Ethereum combo ETFs Approved by SEC: The SEC has given the green light to crypto index ETFs from Hashdex and Franklin Templeton. These funds will initially include Bitcoin and Ethereum, with the potential for more assets based on regulatory approval.

India Clarifies Crypto Taxation for Pre-2022 Gains: India's tax authorities have officially classified cryptocurrencies like Bitcoin as capital assets, making gains earned before 2022 subject to capital gains tax.

NFT Trading Volumes Surge in a Comeback: Leading NFT platforms, including OpenSea, Blur, and Magic Eden, have seen significant trading volume increases since November, signaling renewed interest in digital collectibles.

European MP Advocates for Bitcoin Reserve Over Digital Euro: A newly elected European MP has proposed a strategic Bitcoin reserve, rejecting the push for a central bank digital currency. "It is time to bet on freedom," she said.

Major Bitcoin Miners Continue Accumulating Reserves: U.S.-based MARA added 15,574 BTC worth $1.53 billion to its reserves, while Canada's Hut 8 acquired 990 BTC for $100 million, reinforcing their positions in the market.

Ohio Lawmaker Proposes State Bitcoin Reserve: Ohio's Representative Derek Merrin has introduced a bill to create a Bitcoin reserve for the state treasury, mirroring efforts at the federal level to establish a national Bitcoin reserve.

🔗 Affiliate Spotlight: Advance Your Blockchain Skills

This festive season, 101 Blockchains is bringing you an exclusive opportunity to level up your blockchain expertise. Get 30% OFF on all certifications and learning plans during their XMAS & New Year Sale. Whether you're aiming to expand your knowledge or build specialized skills, this offer has you covered.

🎄 Coupon Code: XMAS101

📖 Courses include blockchain essentials, DeFi strategies, enterprise applications, and more.

Don't miss this chance to grow your expertise while kicking off the new year with confidence. 🎁 Grab the Deal Here.

😂 A Little Blockchain Humor Break 🤣

Source: CoinMarketCap

📊 Chart of the Week: Bitcoin ETFs Race Ahead of Gold ETFs

In a striking shift, BlackRock's Bitcoin ETF has surged to $57.8B in assets under management, leaving its gold ETF counterpart at $33.2B. The timeline? Gold took two decades; Bitcoin pulled it off in under a year.

🔑 What Stands Out:

Rapid Momentum: Bitcoin ETFs have redefined growth benchmarks, achieving almost double gold's AUM in record time.
Changing Preferences: Institutional interest reflects a transition from traditional assets like gold to digital alternatives.
Modern-Day Appeal: Bitcoin's role as a hedge is gaining traction, reshaping long-term investment strategies.

Source: Ki Young Ju

That's a wrap for Edition #44 of Blockchain & Web3 Weekly Bytes! This week, we reviewed how Bitcoin ETFs are outpacing gold, the rise of tokenized AI models reshaping digital ownership, and the SEC's approval of Bitcoin and Ethereum combo ETFs. Add to that, an Indian tax decision clearing the air on crypto gains and Europe's growing focus on Bitcoin reserves, and it's clear—digital assets are driving big changes globally.

🎄 Holiday Update: This was the final edition before the holidays! I'll see you back on January 4th, 2025, with fresh updates and insights for the new year. Until then, happy holidays and a prosperous new year to all!

Trivia Answer: A) Ethereum

Ethereum's launch in 2015 brought smart contracts to the forefront, enabling decentralized applications and programmable agreements that set the foundation for Web3.

If you enjoyed this week's edition, don't forget to share it with friends and colleagues! Let's keep building this community of forward-thinkers. See you in 2025! 🎉

Cheers,
Ajay Tomar

Disclaimer:

Content in this newsletter is for educational and informational purposes only and is not intended as financial, tax, or legal advice. Always do your research and consult with a professional before making financial decisions. As a solopreneur, I may earn commissions from affiliate links in this newsletter at no extra cost to you. This support helps me bring you valuable content. I only endorse products I trust and believe could benefit you.