Initial Perception
All I knew about Bittensor is that it has something to do with AI and that it's one of the tokens that was mentioned and hyped by multiple youtubers which caused it to go up a lot in price from 45$ to 400$ at some point. I also know it's modeled after Bitcoin with a maximum of 21 Million tokens. Aside from this I had no clue what it actually does and why it needs a token let alone if anyone is actually using it.
What is Bittensor ?
Bittensor is a decentralized blockchain platform that focuses on machine learning and artificial intelligence. Unlike OpenAI, which is a centralized company behind Chat GPT, Bittensor aims to be decentralized, allowing individuals to contribute to or use the network freely. It initially started as a Polkadot sub-chain but now has its own proof-of-work chain, making it more efficient and secure. Bittensor is often referred to as the "Bitcoin of AI" due to its decentralized nature and its potential to revolutionize the field of artificial intelligence.
Why it needs a Token ?
From what I understand, TAO is just the currency of the platform with miners providing access to their ML algorithms and models earning TAO, while clients use the outputs of these algorithms and models for their own applications (Paying TAO). I don't think there is any burn at the moment and just 28% of the tokens now are in circulation of which most are staked.
Current Usage & Revenue
From what I understand there are some things already woring on bittensor which can be found on thebittensorhub
The ChatGPT version of Bittensor is chat.neuralinternet.ai which I tested out. It does seem to have a knowledge cutoff of September 2021 though.
TAO Price Chart
On the recent altcoin run, TAO was one of the bigger winners going from 45$ in October 2023 to 400$ mid-December 2023 and it now started to come down currently at 217$. This equals a fully diluted market cap of 4.5 Billion already but for some reason, Coinmarketcap lists it outside the top 200 whilc on coingeicko it's in 61st place.
Is TAO Still A Buy ?
Honestly, I have no clue about it as it remains hard to fully wrap my head around the actual use of all of this. It could be an overhyped project that will never get anywhere or something that will get really big. It doesn't seem to have the crazy community like Kaspa/XRP/Cardano but it does seem like a legit project. The valuation however mostly seems to be based on hype and speculation.
My Strategy...
This is another one of those projects that I would dare to buy for my small altcoin portfolio just for fun and to have some exposure. I don't nearly understand enough of it in order to have confidence that it isn't just all hype. If the price retraces further to the 0.618 fib line (170$) or the upward-sloping trendline around the zone of the previous top I might get a couple coins at most. For now, though, I'm not jumping on the hype wagon just yet.
Conclusion &
TAO for me still is hard to understand and put a value on which makes it one that could go way higher or just fall all the way back down again after the steep run-up. It does have the AI Hype narrative along with some YouTube influencers shilling with it which along should be good for more people buying it aside from any actual use case.
Previous Altcoins
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Crypto & Blockchain-Based Bookies and Exchanges that I'm personally using with some allowing anonymous betting with no KYC or personal restrictions...
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