Bittensor Quick Trader's Guide

Listen to our NoteBookLM Podcast on Bittensor

Basics

• Decentralized network that merges cryptocurrency and artificial intelligence (AI)
• Built on a substrate blockchain
• Aims to create an open-source marketplace for AI contributions

Key Features

• Incentive Mechanism Rewards contributors for open-source AI work using the TAO token
• Yuma Consensus A fuzzy consensus mechanism tailored to AI's probabilistic nature, differentiating it from traditional deterministic blockchain consensus
• Subnets Focuses on different AI components, including data collection, training, and inference, allowing developers to launch AI-powered services
• Fair Launch No pre-mine or VC dominance; founders own less than 1% of the network’s token supply

Token TAO

• Utility Network rewards, staking, and incentivizing AI work
• Staking Token holders can contribute to the security and growth of the network

Trading Edge

• Decentralized AI Development Allows AI developers to contribute without large-scale corporate backing
• Open Source All contributions to the network are publicly available and can be used by others
• Fair Token Distribution The network emphasizes decentralization, mirroring Bitcoin's tokenomics but tailored to AI

Future Outlook

• ERC-20 Style Rollout Planned smart contract functionality similar to Ethereum for AI-related tokens
• AI and Crypto Convergence Positioned as a leader in decentralized AI with growing developer activity

Growth Constraints

• Understanding the Mechanism Some investors and developers may find it complex, especially Yuma Consensus
• Centralized AI Competition Competes against large, established AI companies like OpenAI and Google

Opportunities

• AI Ecosystem Growth The ability for AI developers to contribute without centralized oversight is a major draw
• Inverted Business Model Rewards open-source work, challenging traditional centralized AI business structures

Risks

• Adoption and Understanding Success relies on adoption by developers and the crypto community understanding its innovative incentive mechanisms
• Market Volatility TAO token price fluctuations could affect the attractiveness of contributing to the network

Bittensor Price Analysis

As of January 15 2025 Bittensor has a marketcap of $3.4B. This is {{percentagefromath}} from its all time high of $757.60. In terms of its tokenomics, there's a total supply of 21M with 39% currently outstanding. Keep in mind Bittensor has a fully diluted value of $8.8B which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.

Summarized in part by ChatGPT 4 and Claude