Bittensor is a decentralized network for machine learning. AI needs a new market for efficient production. Bittensor aims to create a collectively run, decentralized market where intelligence is priced by other intelligence systems.
This means that users can submit their machine learning models to the network, tested and trained by other neural networks on Bittensor, and ranked by value, which is recorded on Bittensor’s digital ledger.
High-ranking peers are rewarded with additional weight in the network. The benefits of Bittensor’s system, as stated in their whitepaper, include the ability to reward AI models that can be applied to a larger set of objectives. This helps in monetizing more esoteric or legacy systems for their unique value and allows researchers to monetize their intelligence work, which consumers can directly purchase.
Bittensor’s co-founder, Ala Shaabana, in his Medium post ‘The Future of AI is Decentralized,’ published in February 2021, stated that the issues with centralized AI research and production are non-collaborative research, wastefulness, and high barriers to entry. This statement is still somewhat true even after almost 3 years.
Bittensor addresses these issues by being a permissionless, decentralized, and incentivized network that enables all knowledge within the network to be shared collaboratively.
What is a TAO Token?
TAO is a digital token that serves as the currency within the Bittensor network. It is required to purchase access to machine learning models on the network, reward validators and miners, and researchers who contribute new machine learning models to the network.
TAO follows the same tokenomics as Bitcoin, with a maximum supply of 21 Million tokens and a four-year halving cycle. Bittensor was founded in 2019, and the network and TAO token launched in 2021.
TAO was distributed via fair launch, with no tokens pre-mined. Bittensor hopes that other AI companies will use its network to validate the quality of their machine-learning algorithms and that companies of all sizes will leverage and pay for AI models that will only be available on Bittensor.
TAO Price, Current Technicals and Target
At press time, the TAO token is trading at the level of $288 after coming down from the all-time high of $395. Some profit booking has occurred and the TAO price is near the 50-Day EMA of $254.
The bullish investors are looking to take the support level of the 50-Day EMA and therefore a trend reversal can be seen. $353 is acting as resistance and will be tested in the upcoming days. The relative strength index (RSI) is also showing signals of bullish strenght. Hence, the target price as per the current technical analysis will be $353.
Summary
Bittensor is a decentralized and incentivized network while TAO is the digital token used within the network. Its tokenomics follow that of Bitcoin with a maximum supply of 21 Million tokens and a four-year halving cycle. The network was founded in 2019 and TAO launched in 2021. Currently, the TAO coin shows bullish signals in its 50-Day EMA support level and RSI.
Technical Levels
- Support Levels: $192 and $124
- Resistance Levels: $353
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
Source: https://www.thecoinrepublic.com/2024/01/24/bittensor-crypto-what-is-bittensors-tao-should-one-invest-in-it/