crypto

What is a Bittensor (TAO)? Is it a Good Investment?

By Carl Vogel

Bittensor (TAO)

Bittensor (TAO) is an innovative platform that combines the power of artificial intelligence (AI) and blockchain technology. AI is rapidly growing, becoming a part of numerous industries, and changing the way we work and live since it affects everything from driving to photography, even programming. With Bittensor, anyone can create, train, and share Machine Learning (ML) models on a decentralized platform. 

AI has taken the world by storm, and the investment of $42.5 billion in AI development alone shows this. At the same time, blockchain networks like Web3 are integrating AI to make them more powerful. Bittensor stands out by connecting separate ML models and helping them grow into stronger and more effective models. Moreover, Bittensor makes it easier to create, share, and profit from AI models in a collaborative way. 

What is a Bittensor (TAO)?

Bittensor is a decentralized network built on blockchain that changes how AI and ML models are developed and shared. Unlike traditional AI systems, which are controlled by large corporations, Bittensor creates an open platform where anyone can contribute and collaborate. 

Its vision is to create a “Digital Hive Mind,” a global neural network that continuously grows and becomes smarter through the collective input of its users. It has 3 main goals: to accelerate AI and ML model development through global collaboration, make AI accessible to a broader community beyond large tech companies, and create a thriving machine intelligence economy by rewarding users with TAO tokens. 

The platform treats ML as a tangible asset; therefore, developers can create and train data models and trade them in the Bittensor market, earning TAO tokens as rewards. This allows AI experts from around the world to collaborate and improve the network’s overall intelligence. By decentralizing the process and allowing models to learn from each other, Bittensor is bringing together AI projects that would otherwise be isolated and making advanced technologies more accessible to everyone. 

How Does The Bittensor Protocol Work?

The Bittensor protocol operates through a unique system where participants are rewarded based on the quality of their ML contributions, using the Proof-of-Intelligence (PoI) consensus mechanism. Instead of traditional mining or staking, this system incentivizes valuable output, rewarding participants with TAO tokens. Bittensor evaluates contributions using game theory principles and the Shapley value framework. 

The network consists of decentralized nodes or miners, who host ML models and provide predictions. Miners register with a unique hotkey and are assigned based on their expertise. Validators ensure the accuracy of predictions and maintain network security. Both miners and validators are rewarded with TAO tokens, which keep the network efficient and encourage participation. 

What is TAO?

TAO Token is the native cryptocurrency of the Bittensor network, which is essential for its operation. It creates the economic foundation for a decentralized marketplace for Machine Learning, encouraging collaboration in AI development by rewarding participants for their contributions. 

The token has multiple roles in the network. Validators stake TAO to secure the network by validating transactions, earning rewards in return. Other users use TAO tokens to pay transaction fees. It is also important for governance, allowing token holders to vote on decisions like network upgrades and funding allocations. 

The total supply of TAO is 21 million, distributed through mining and validation. Miners and validators are rewarded with TAO, with the block reward currently set at 1 TAO per block. Moreover, each day 7200 TAO are minted, and this will decrease to 3600 after the first halving, continuing till the total supply reaches the cap of 21 million.

Tokenomics and Price Prediction for 2025

Bittensor (TAO) is currently priced at $443.43 with a market cap of $3.27 billion. It has a 24-hour trade volume of $186.92 million, and all of the 7.38 million TAO tokens are in circulation. Based on this information, let’s predict its price for 2025.

MonthMinimum PriceAverage PriceMaximum PricePotential ROI
January$84.63$132.10$108.36-69.9%
February$169.25$264.21$216.73-39.8%
March$253.88$396.31$325.09-9.7%
April$338.50$528.41$433.4620.4%
May $423.13$660.51$541.8250.6%
June$507.75$792.62$650.1980.7%
July$592.38$924.72$758.55110.8%
August$677$1,056.82$866.91140.9%
September$761.63$1,188.92$975.28171%
October$846.25$1,321.03$1,083.64201.1%
November$930.88$1,453.13$1,192.01231.2%
December$1,015.50$1,585.23$1,300.37261.3%

Where To Buy Bittensor (TAO)?

Following are a few exchanges where Bittensor’s TAO token can be traded: 

  • Binance
  • Bitget
  • Kraken
  • KuCoin
  • MEXC
  • Gate.io
  • BingX
  • BitMart
  • LBank
  • XT.COM

Conclusion

Bittensor is revolutionizing AI by offering an open-source, decentralized platform that makes AI more accessible to everyone. As demand for computing power increases, Bittensor empowers individuals to integrate AI into their own projects. 

By combining blockchain and AI, Bittensor creates a community-driven ecosystem that democratizes AI access through tokenization and its consensus mechanism. As more developers join, Bittensor has the potential to disrupt the centralized AI industry, offering a compelling alternative for machine learning development.

Bittensor might be a great token to buy right now, especially for investors who believe in the future of AI. It offers a good potential ROI because its price can fluctuate, creating opportunities for profits. However, this volatility can be risky, so it’s better suited for investors who can handle high risks and are financially stable. 

Leave a Comment