Crypto analyst The Smart Ape has compared Bittensor (TAO) and Bitcoin (BTC). He suggests that TAO could be viewed as a supercharged version of the leading crypto.
The analyst’s findings, based on a review of Bittensor’s whitepaper, highlight similarities in structure and potential for growth between the two digital assets.
What you'll learn 👉
Bittensor’s Decentralized AI Platform
Bittensor is a decentralized application that utilizes blockchain technology to allow the development and sharing of artificial intelligence models. The network provides participants with TAO tokens as compensation for their efforts in the ecosystem.
At its essence, Bittensor comprises subnets that serve as decentralized marketplaces where AI models compete to execute diverse tasks, such as text production or picture recognition.
These subnets are independent entities that can be created by anyone, contributing to the growth and development of the AI sector within the Bittensor ecosystem. The flexibility of subnets allows for variations in size, code, and functionality, adapting to different needs and use cases.
Similarities and Differences with Bitcoin
The Smart Ape points out several key similarities between Bittensor and Bitcoin. Both operate on a Proof of Work consensus mechanism and have a maximum supply of 21 million tokens. Additionally, both cryptos incorporate halving cycles every four years to reduce the rate of new token issuance.
However, a notable difference lies in energy utilization. While Bitcoin mining often results in wasted energy for unsuccessful miners, Bittensor redirects all consumed energy towards powering AI models on its network. This approach potentially makes TAO more energy-efficient compared to its predecessor.
Doge2014 raises 500K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!
Show more +Read also: Solana (SOL) Bulls Could Charge Toward New ATH, But There’s a Catch
Market Performance and Future Outlook
The analysis by The Smart Ape reveals that Bittensor’s GitHub activity exhibits robust community involvement, as seen by the presence of thousands of daily reviews. Reports indicate that the number of developers involved in the project has remained consistent, even in the face of price swings.
Furthermore, the analyst observes that the TAO token has seen demand, as evidenced by an average daily trading volume of $300 million.
In its analysis of the possibility for substantial price increase, the Smart Ape highlights the alignment of TAO with the expanding AI narrative and its contribution to the decentralization of AI processing capacity.
The analyst establishes a comparison between the present stage of Bittensor and the early years of Bitcoin, with the suggestion that TAO may see a comparable path of expansion and acceptance.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
