"Virtual Currency Information Bureau | Currency Introduction" AI investment opportunity arrives? Bittensor (TAO) democratizes AI development! A thorough explanation of its mechanism and price prediction for 2025! #Bittensor #TAO #AI crypto assets
Video explanation
What is Bittensor (TAO)? A detailed explanation of the noteworthy project that will shape the future of AI and cryptocurrency! Outlook for 2025
Hello, I'm John, a cryptocurrency blogger. In recent years, the evolution of AI (artificial intelligence) has been remarkable. In fact, a very interesting project has emerged that combines this AI with cryptocurrency (cryptocurrency) technology.Bittensor" and its native token "TAO（タオ）".
Some people may think, "AI and virtual currency? Sounds complicated...", but don't worry. In this article, we will explain Bittensor and TAO in detail, from their mechanisms to their future potential, and the outlook for the future after 2025, while explaining technical terms in an easy-to-understand way so that even beginners can understand. After reading this article, you will surely understand why Bittensor is attracting so much attention!
Basic information on Bittensor (TAO): A new form of AI development
First of all, what exactly is Bittensor?
In a nutshell,Bittensor is a decentralized AI networkThis is like an open market where anyone in the world can develop and provide AI models (AI programs and algorithms) and use and evaluate them. Blockchain (a technology that links and manages transaction records like a chain) is used as the underlying technology for this network.
Problems that Bittensor aims to solve:
Currently, the development of high-performance AI models tends to be concentrated in a few giant IT companies such as Google and Microsoft. This requires enormous computing resources and data, making it difficult for individuals and small organizations to compete.
Bittensor is challenging this problem of "centralization of AI development." Rather than a specific company monopolizing AI technology, we aim to enable more people to participate in AI development and benefit from it.
Unique features of Bittensor:
- Decentralized AI Marketplace: Developers around the world will provide AI models on the Bittensor network, and users will be able to use these models with TAO tokens, promoting free competition and innovation in AI models.
- Subnets: The Bittensor network is made up of many small networks called "subnets" that are specialized in various fields. For example, there are subnets for various AI tasks, such as a subnet for text generation AI and a subnet for image recognition AI, and each subnet has its own rules and incentives (reward mechanisms). This allows for the efficient development of diverse AI.
- Incentive Mechanism: Participants who contribute to the network (miners who provide AI models and validators who evaluate the quality of models) are paid TAO tokens as a reward. This system makes it easier to provide high-quality AI models, revitalizing the entire network.
The TAO token acts as the "fuel" that powers the Bittensor ecosystem, and has been attracting a lot of attention in recent years as an AI-related virtual currency.
TAO Token Supply and Price Impact
When considering the price of a virtual currency, its supply is a very important factor. Let's take a look at the TAO token.
Max Supply:
The maximum supply of TAO tokens is21,000,000 TAOs This is the same number as Bitcoin (BTC), the king of virtual currencies. The fact that the maximum supply is fixed means that it cannot be issued infinitely, which means that scarcity is likely to occur.
Current Circulating Supply:
The circulating supply of TAO will gradually increase as new tokens are issued as rewards. The latest circulating supply can be found on cryptocurrency information sites such as CoinMarketCap and CoinGecko. As of mid-2024, there are approximately 700 million TAOs in circulation.
Effect of supply on price:
The limited supply could lead to higher prices if demand increases.Halving" Similar to Bitcoin, the reward for newly issued TAO tokens to miners and validators is periodically halved.
Bittensor harving will occur every half of the total supply (i.e. every 1050 million TAOs) and will slow down the issuance pace. The first harving is expected to occur in late 2025 or early 2026. This harving will reduce the number of new TAO tokens in circulation, which in theory could increase scarcity and positively impact the price. In fact, some market analysts consider this harving to be a key event in predicting the price trend in the Bittensor TAO Price Prediction 2025 and beyond.
However, keep in mind that this is just a theory and the actual price will depend on many factors, including overall market trends, project progress, and demand.
How Bittensor Works: The Fusion of Blockchain and AI
Let's take a closer look at the technical mechanisms of Bittensor and how it realizes a distributed AI network. Although it will be somewhat technical, I will explain it in an easy-to-understand way.
Utilizing blockchain technology:
Bittensor is based on its own blockchain (sometimes called "Subtensor"), which has the following main functions:
- TAO token issuance and management: It securely records TAO token transactions, reward distribution, etc.
- Onboarding and managing network participants: It manages information about miners who provide AI models and validators who evaluate them.
- Subnet Management: It records information about the many subnets that exist and provides the basis for them to function together.
Thanks to the blockchain, the network operates without a central authority, in a transparent and difficult to tamper with manner.
What are Subnets?
The biggest feature of Bittensor is the "subnet" mechanism. A subnet is like a "small AI market" specialized for a specific AI task or field. For example,
- Text Generation AI Subnet
- Image Generation AI Subnet
- Data Analysis AI Subnet
- Financial Prediction AI Subnet
There are various types of subnets, such as the above, and new subnets are proposed and created every day. Within each subnet, miners compete to provide good AI models, and validators evaluate their quality. Then, TAO tokens are distributed according to their contributions.
This subnet structure allows Bittensor to build an ecosystem that can serve a variety of AI needs, rather than a single giant AI model, which is a very flexible and scalable approach.
The role of miners and validators:
- Miners: These are people who provide AI models and computational resources to the network. They try to prove that their AI models are better than other models. By providing high-quality information and computational results, they receive rewards (TAO tokens).
- Validators: They are people who evaluate and verify the quality and performance of the AI models provided by miners. They become validators by staking (depositing) TAO tokens and receive rewards for accurate evaluation.
This interaction between miners and validators improves the quality of AI across the entire network. At Bittensor, this evaluation mechanism is sometimes called "Yuma Consensus," but it is essentially a concept similar to "Proof of Intelligence," where you can earn rewards by proving your contribution (intelligence).
Role of TAO token:
The TAO token is essential to keeping this complex ecosystem running smoothly.
- remuneration: It is paid as a reward to miners and validators for their contributions.
- Staking: You need to stake TAO tokens to become a validator or join a particular subnet.
- Governance: In the future, it is expected that TAO token holders will be able to participate in decision-making regarding protocol upgrades, etc.
- Access fee: When using AI services on the subnet, payment may be made in TAO tokens.
In this way, the TAO token is not just a virtual currency, but can be said to be the lifeline of the Bittensor network.
Bittensor Development Team and Community
The success of any project depends on the people and community behind it. What about Bittensor?
Development Team (Opentensor Foundation):
The Bittensor projectOpentensor FoundationThe foundation is led by a non-profit organization called Ethereum, which aims to support protocol development, research, and ecosystem growth. Its founders include Jacob Robert Steeves and Ala Shaabana, who are said to have deep expertise in AI and distributed systems.
Development is open source (the program blueprints are publicly available), allowing developers from all over the world to contribute. This has the advantage of being highly transparent and making it easier to gather a lot of knowledge.
Community Activities:
Bittensor is also known for having a very active and enthusiastic community, which can be found in the following places:
- Discord: People from various backgrounds, including developers, miners, validators, and investors, hold discussions every day. There is a lively exchange of information, from technical questions to future prospects.
- GitHub: The project's code is publicly available, allowing you to follow its development progress and contribute to it.
- X (old Twitter): The latest information and announcements are posted here.
- Reddit: There is also a forum for discussion and information sharing by the user community.
The Discord community in particular is large, with channels for each subnet, and participants work closely together. A strong and active community is extremely important, as it can provide support when a project faces difficulties and serve as a driving force for generating new ideas.
Regarding reliability:
The Opentensor Foundation aims to decentralize the project and ensure its long-term success, and is trying to build a system that is not dependent on any particular individual or company. It is not backed by many well-known venture capitalists or investors, but instead it is a project that has grown through technical innovation and the power of the community. This grassroots approach seems to be attractive to some supporters.
Uses and future prospects of TAO tokens
The TAO token plays a variety of roles within the Bittensor network, but what potential does it have in the future?
Current main uses:
- Rewards for miners and validators: You can earn TAO by providing AI models and ratings to the network.
- Staking: You stake TAO to act as a validator or participate in the governance of a particular subnet, and you can earn rewards by staking.
- Paying for AI services: A system is being developed that allows payments to be made in TAO when using AI models and APIs (a gateway through which programs can exchange information) provided on the subnet.
- Participate in governance: TAO holders are expected to have voting rights on important network decisions (approving new subnets, protocol changes, etc.).
Future prospects and possibilities:
The future of Bittensor and the TAO token will depend heavily on the growth of the overall AI market and the widespread adoption of the concept of decentralized AI.
- Towards a huge marketplace of AI models: If AI models in various fields are traded on Bittensor, the demand for TAO tokens may increase dramatically. Individual developers and small teams may be able to sell their own AI models to the global market.
- Collaboration with DeFi (Decentralized Finance): If TAO tokens can be used in DeFi protocols (services that allow financial transactions without going through banks), new ways of using them may emerge, such as lending and liquidity mining (a system in which tokens are deposited and rewards are earned).
- A foundation for new AI applications: By combining high-quality AI models developed on Bittensor, new AI applications and services that were previously unimaginable may emerge.
- Role as the "Internet of AI": Bittensor aims to be something like an "Internet for AI," where AI models can freely exchange information and cooperate with each other. If this becomes a reality, it will further accelerate the evolution of AI technology.
Many experts and analysis sites are predicting future price trends with keywords such as "Bittensor TAO Price Prediction 2025", and the growing interest in the AI field and the expected halving event around 2025 are factors that are raising expectations. For example, some predictions point out that if the explosive growth of the AI market and the expansion of the Bittensor network go hand in hand, the price of TAO could reach several times its current price by the end of 2025, and in some cases even exceed $1000 (this is just one prediction and is not guaranteed).
Of course, these prospects are optimistic scenarios, and many hurdles must be overcome to make them a reality. However, Bittensor's attempt to combine cutting-edge technologies, AI and blockchain, shows great potential.
Comparison with competing projects: Strengths of Bittensor
There are several other projects besides Bittensor that combine AI and blockchain. For example, Fetch.ai (FET), SingularityNET (AGIX), Ocean Protocol (OCEAN), etc. What are the strengths of Bittensor compared to these projects?
- Emphasis on "quality competition" of AI models: The biggest feature of Bittensor is that it creates a "competitive market" that continuously evaluates the quality of AI models within the subnet and rewards excellent models. This strongly encourages the improvement of the performance of AI models. While other projects focus on sharing data and providing AI services, Bittensor specializes in value creation and distribution of the AI model itself.
- Flexible and scalable subnet structure: The subnet architecture, which can handle a wide variety of AI tasks, is very unique. This makes it easy to form a development community that specializes in a specific AI field, providing an environment in which innovation can be easily generated. It also has the potential to quickly respond to new AI trends.
- Powerful incentive design: The reward system using TAO tokens provides strong incentives to both miners (AI model developers) and validators (evaluators). This economic incentive supports the growth and quality improvement of the entire network.
- Strong commitment to decentralization: Its aim to be a truly decentralized AI network that is not dependent on any particular company or organization is being praised as an antithesis to centralized AI development.
On the other hand, competing projects each have their own strengths: for example, Fetch.ai is building an economy for autonomous agents (programs that perform tasks automatically), SingularityNET is creating a platform for the development of artificial general intelligence (AGI), and Ocean Protocol is focusing on creating a data marketplace.
While it remains to be seen which project will ultimately take the lead in the AI field, Bittensor's approach to rewarding and evaluating AI intelligence is a highly original and powerful concept.
Bittensor (TAO) Investment Risks and Precautions
Bittensor (TAO) is a very attractive project, but there are some risks and points to be aware of when considering investing. It is essential to remember that cryptocurrency investments are always done at your own risk.
- Price fluctuation risk (volatility): This is a risk common to all virtual currencies, and TAO is no exception. Prices can fluctuate significantly depending on market sentiment, news, regulatory trends, etc. In particular, AI-related stocks tend to be prone to price fluctuations due to expectations and disappointments, as they attract a lot of attention.
- Technical Complexity: While the mechanism of Bittensor is very innovative, it is difficult to fully understand without specialized knowledge. It should be noted that there is a learning cost, such as the concept of subnets and the mechanism of mining and staking. Some have pointed out that this complexity may hinder its widespread use (see Medium article on SERP).
- Initial project stage: Bittensor is a developing project. There is a risk that development may not proceed according to the roadmap, that unforeseen technical issues may arise, and long-term success is not guaranteed.
- Increasing competition: The AI and blockchain fields are highly competitive, and there is always the possibility that a competing project with a better technology or business model could emerge.
- Regulatory uncertainty: There are still many areas where national regulations regarding virtual currencies and AI have not been established, and there is a risk that unexpected regulations will be introduced in the future, which may affect the operation of projects and the value of tokens.
- Fraud and Security Risks: In the world of virtual currencies, there is always the risk of fraudulent projects and hacking. When purchasing and storing TAO tokens, it is important to choose a reliable exchange or wallet and take thorough measures for your own security.
- TAO Token Liquidity: Compared to major virtual currencies, there are still only a limited number of exchanges where you can trade TAO tokens. In exchanges with low trading volume, you must also consider the risk of not being able to buy or sell at the desired price (liquidity risk).
Please be sure to fully understand these risks and consider investing carefully at your own discretion and responsibility. The most important thing is to maintain a "DYOR (Do Your Own Research)" mentality.
Expert opinion and analysis (including price forecasts)
Many cryptocurrency analysts and experts have published various opinions and price predictions regarding the future of Bittensor (TAO). You can find a lot of information, especially by searching for keywords such as "Bittensor TAO Price Prediction 2025" and "TAO 2025". Here we will introduce the general trends from several sources, but please note that these are only predictions and are not investment advice.
According to multiple analysis sites:
Cryptocurrency analysis sites such as Changelly, Coinpedia, Botsfolio, and Coinedition have conducted analysis on the future price of TAO, with many of these sites citing positive factors such as the overall growth of the AI market, the expansion of the Bittensor network, an increase in subnetworks, and a predicted TAO halving event in late 2025 to early 2026.
Specific price predictions vary by site. For example, some sites predict that TAO will be priced at the end of 2025.Approximately $500 to $700, a more bullish forecast.$1,000 to $1,700 (Binance Square article, etc.)Some analysts have suggested that prices could reach $2025 billion by 200. However, some analysts have taken a more cautious stance due to market uncertainty and competition. For example, some have predicted a lower limit of $XNUMX in XNUMX.
Major exchanges like Kraken also provide price prediction tools and market insights for their users, helping to gather data on Bittensor’s future prospects.
A word of caution about price predictions:
These price predictions are based solely on current information and market trends, and are not a guarantee of future results. The cryptocurrency market is highly volatile and subject to unpredictable events (e.g., changes in global economic conditions, tightening of regulations, technological breakthroughs or issues).
It is important to regard expert opinions and analyses as a reference and not to blindly accept them, but to research the project yourself in depth and make a decision after understanding the risks. In particular, it is very dangerous to invest based only on a specific price target.
When assessing the future prospects of Bittensor (TAO), it is necessary to take a comprehensive look at not only price predictions, but also the project's technical progress, community activity, partnership status, and the overall trends in the AI industry.
Bittensor latest news and roadmap
The Bittensor project is constantly evolving. Staying up to date with the latest information is crucial to determining the project's future prospects. Here we'll touch on some notable recent developments and roadmap highlights. (Information is subject to change, so be sure to check the official website or official social media for the latest information.)
Recent notable trends:
- Diversification and proliferation of subnets: New subnets are constantly being proposed and launched on the Bittensor network, covering a wide range of areas, including text generation, image generation, assisted coding, prediction markets, and distributed storage. Recently, subnets tackling more specialized and niche AI tasks have also appeared, demonstrating the breadth of the ecosystem.
- Dynamic TAO (DTAO): There are proposals and implementations underway to more dynamically adjust the TAO issuance mechanism so that certain subnets can attract more rewards (TAO), which will hopefully allow high demand or innovative subnets to grow more easily.
- Community-driven development and governance: Through an improvement proposal process called Bittensor Improvement Proposals (BITs), community members are actively discussing and voting on the future of the protocol.
- Collaboration with academic institutions and researchers: There are also moves to seek collaborative relationships with universities and research institutes to explore the potential of decentralized AI.
Roadmap highlights (especially towards 2025):
The official long-term roadmap is fluid, but based on community discussions and development direction, the following points are likely to be the focus going forward (information sites such as Bitrue have also compiled information in the form of the TAO Bittensor Roadmap 2025):
- Increased scalability: As more miners and subnets join the network, technical developments will continue to be made to increase transaction processing power and overall network efficiency.
- Improved inter-subnet connectivity: It is possible that mechanisms will be developed that will enable AI models on different subnets to work together to provide more complex and advanced AI services.
- Usability improvements: We hope to see the development of tools and interfaces that will enable not only developers, but also general users and businesses to more easily use AI services on the Bittensor network.
- Maturity of the ecosystem and external collaboration: As more applications and services are built on Bittensor and collaboration with external blockchain projects and existing IT infrastructure progresses, the utility of the TAO token is expected to increase even further.
- Halving (Half-Life): As mentioned above, the first harving is scheduled for late 2025/early 2026, which will be a big event in terms of token supply. Market interest is likely to increase towards this time.
Bittensor's roadmap is not determined by a centralized company, but is heavily shaped by community suggestions and contributions. Therefore, regularly checking the official documentation, Discord, and GitHub discussions is the most reliable way to know the latest direction of the project.
Frequently Asked Questions (FAQ)
We have compiled a Q&A format of questions that beginners are likely to have about Bittensor (TAO).
- Q1: Where can I buy Bittensor (TAO)?
- A1: TAO tokens can be purchased at some major overseas cryptocurrency exchanges. For example, MEXC, Gate.io, KuCoin, etc. (Please check the official website of each exchange as the availability may change.) As of 2024, the availability of TAO tokens at Japanese cryptocurrency exchanges is still limited or not available in many cases. When considering purchasing, please compare the reliability, security, fees, etc. of the exchange.
- Q2: What can TAO tokens be used for?
- A2: TAO tokens have various roles in the Bittensor network. The main uses are (1) rewards for miners who provide AI models and validators who evaluate models, (2) staking to become a validator, (3) participation in governance voting to decide the network's operating policy (planned to be fully implemented in the future), and (4) a means of payment when using AI services on the subnet.
- Q3: Is Bittensor secure?
- A3: Bittensor is based on blockchain technology, so a certain level of safety is ensured in terms of its decentralization, transparency, and tamper resistance. However, any technology project carries risks. There is no guarantee that vulnerabilities in smart contracts (automated contract programs), the possibility of network attacks, or operational problems with the project itself will not occur. In addition, if you manage TAO tokens yourself, your own security measures, such as managing your wallet's private key, will be extremely important. As with all cryptocurrency investments, it is important to fully understand the risks.
- Q4: What is the future of Bittensor?
- A4: Bittensor is an ambitious project that combines two fast-growing fields, AI and blockchain, and is seen by many as having great potential. As the concept of decentralized AI becomes more widespread and the AI market expands, the value of the Bittensor network and the TAO token may also increase. In particular, the unique mechanism that encourages quality competition in AI models is noteworthy. However, as mentioned above, there are many hurdles to overcome, including technical challenges, the presence of competitors, and regulatory uncertainty. Continuous information gathering and careful analysis are required to determine the future potential.
- Q5: What is a subnet? Please explain briefly.
- A5: A subnet is like a "small AI market for each specialized field" within the Bittensor network. For example, it is specialized for a specific AI task, such as a "text writing AI subnet" or a "image recognition AI subnet." In each subnet, miners who provide AI models in that field and validators who evaluate the quality of the models are active and receive rewards in TAO tokens according to their contributions. It is expected that this subnet mechanism will allow various types of AI to be developed efficiently and their quality to be improved through competition. The official Bittensor documentation contains detailed information, including a subnet tutorial, so please refer to it if you are interested.
Links
If you would like to know more about Bittensor (TAO), please refer to the links below.
- Bittensor official website: https://bittensor.com/
- Bittensor official documentation: https://docs.bittensor.com/
- TAOStats (Network Statistics): https://taostats.io/
- Opentensor Foundation (X/formerly Twitter): https://twitter.com/opentensor
- Bittensor Discord Community: Check out the official site for an invite link. There is a lively discussion going on there.
- CoinMarketCap (Bittensor TAO): https://coinmarketcap.com/currencies/bittensor/
- CoinGecko (Bittensor TAO): https://www.coingecko.com/en/coins/bittensor
Well, this time I have explained Bittensor (TAO), an innovative project that combines AI and blockchain, in an easy-to-understand manner even for beginners. I hope that I have been able to give you some understanding of how it works, its future potential, and its outlook for 2025. Bittensor is a very exciting project that has the potential to dramatically change the way AI development is done. We will be keeping an eye on its developments in the future!
[Disclaimer]
This article is intended to provide information about the cryptocurrency "Bittensor (TAO)" and does not recommend the purchase of any specific financial products. Investing in cryptocurrencies involves the risk of price fluctuations and the possibility of losing principal. When making investments, please collect and analyze information yourself and make your own decisions and take responsibility for them.