Take a quick breather and let’s move on again. After an astonishing rally at the end of last year, TAO, the coin of the AI project Bittensor, took a short break in January. Over the course of this week, the token surprisingly began a run towards all-time highs again. And was able to overcome this in the last 24 hours.
The “Bitcoin among the AI coins” has repeatedly benefited from promising news from the AI sector in the past, which is likely to have had a positive influence on the TAO price in this case too. But the mention of Ethereum founder Vitalik Buterin also plays a significant role in the recent rally.
Vitalik Buterin recognizes the benefits of TAO
In his new blog post – “The Promise and Challenges of Crypto + AI Applications” – the Ethereum founder tries to get to the bottom of the question of whether these two future technologies are compatible with each other. Vitalik Buterin warns of the trend of AI centralization, similar to the development of social media algorithms. Society is therefore already “highly dependent on subordinate, irresponsible, centralized AI judges”.
According to Buterin, there are two reasons for wanting to optimize existing AI systems. On the one hand, there is a demand for “democratic leadership of systemically important AIs”. On the other hand, this would offer more control in terms of AI security. For example, shutting down the system if artificial intelligence is misused for malicious purposes. It is therefore possible to use “crypto incentives” to “promote better AI”. And without using cryptography for complete encryption. According to the Ethereum founder, Bittensor falls into this category.
AI dominates the financial world
Bittensor wants to make machine intelligence a tradable raw material – using blockchain. The goal is to “revolutionize machine learning platforms”. Unlike AIs from Google, OpenAI and Co., individual models on Bittensor’s open AI market are interoperable and optimize each other. Anyone who contributes their model to the network earns TAO tokens. They are the currency of the open source market and provide the appropriate incentives to feed the network and the market with optimized artificial intelligence.
The theory behind Bittensor as an investment, in addition to the economic properties copied from Bitcoin, is the increasing realization that the mass adoption of AI through decentralized means has better prospects. Only when free market mechanisms guide the development and interoperability of artificial intelligence can the technology’s full potential for society be realized.
Why the TAO price is rising
The price of Bittensor’s native currency TAO therefore also correlates with news from the world of OpenAI and Co., which indicates mass adoption. The chip manufacturer Nvidia, for example, which is benefiting greatly from the demand for AI computing power, is currently breaking records again and again. This month alone, the company’s shares rose 26 percent – a new all-time high. Bittensor also benefits from this hype. The same applies to new developments around Sam Altman’s company OpenAI.
However, aside from the pure AI hype, Bittensor could also increase in value for investors organically. In a current one Tweet Opensea co-founder, Alex Atallah, draws attention to the earning potential with Bittensors Subnets. The Nous Research project earned $32,000 by optimizing an open source evaluation model, which has now aroused the interest of many AI developers. In other words: Bittensor could soon move into the spotlight of the broader AI community outside of the blockchain sector.
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