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 November 24 2024 Bittensor has a marketcap of $3.9B. This is {{percentagefromath}} from its all time high of $757.60. In terms of its tokenomics, there's a total supply of 21M with 35% currently outstanding. Keep in mind Bittensor has a fully diluted value of $11B 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