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Why does Bittensor (TAO) compare to Bitcoin?

Let's talk about Bittensor ($TAO), the project that is trying to decentralize artificial intelligence. But first: it is not an app that you download, nor a regular wallet. It is something more fundamental.

What Is TAO Really?

Bittensor is a proprietary blockchain that functions as a “market for intelligence”. This is where something different happens:

  • Thousands of AI models compete in real time to solve problems
  • If you need a prediction about Bitcoin, 1000 models give you answers.
  • Only the most accurate model receives a reward in $TAO
  • The network self-improves because it only rewards what works

This is your proposal: AI should not be a monopoly of Google or Meta. It should be a common good, decentralized, where anyone can contribute.

The Numbers That Matter

Here is the interesting part in economic terms:

Maximum supply: 21 million TAO (exactly like Bitcoin)

There is no hidden “vesting” for the founding team. That is a point in favor.

The current risk:

  • Approximately 7,200 TAO are issued daily to reward miners and validators.
  • This pace is high until the halving arrives ( expected at the end of 2025/beginning of 2026)
  • This creates selling pressure in the short term

Risk-Reward Analysis

The Good:

  • Fundamental infrastructure for decentralized AI (real utility)
  • Limited offer such as BTC ( deflationary in the long term )
  • Sophisticated technology, difficult to copy

The Concerning:

  • Complex technology to understand ( barrier for adoption )
  • High daily issuance until the halving = selling pressure
  • It is a very long-term bet (5-10 years minimum)

The Million Dollar Question

When the halving reduces the daily issuance by half, will we see a similar effect to that of Bitcoin? Many expect it, but remember: TAO is much younger and more experimental than BTC.

Conclusion: If you believe in decentralized AI and can tolerate extreme volatility, TAO is worth investigating. But invest only what you can afford to lose.

TAO-9.88%
BTC-6.13%
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This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
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