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Early on Monday, the supply of new cryptocurrency tied to Bittensor\u2014a decentralized network of AI projects\u2014dropped by half. The halving was the first the currency has experienced and came about by design, reflecting how Bittensor shares the same anti-inflationary architecture as Bitcoin. The event also serves a milestone for one of the most novel and ambitious cryptocurrencies to launch in years.<\/p>\n
Currently, Bittensor has a market capitalization of $2.7 billion, according to the crypto analytics site CoinGecko. That pales in comparison to Bitcoin but is number 50 on the list of most popular cryptocurrencies. It also enjoys the backing of influential crypto billionaire Barry Silbert. At a time when AI is dominating the economy and the political discourse, Bittensor offers the promise of a decentralized alternative to Big Tech\u2014provided it can keep picking up traction in the crypto world and beyond, and if its price holds up following the new drop in supply.<\/p>\n
Here\u2019s an overview of exactly what Bittensor is, who\u2019s betting on its success, and what some crypto prognosticators say will come next after its halving:<\/p>\n
Founded by Jacob Steeves, a former Google engineer, in 2019, Bittensor is designed to repurpose the mechanics of Bitcoin for AI. In the world of Bitcoin, owners of fleets of computer servers leverage their processing power to process and secure cryptocurrency transactions. This is called Bitcoin mining.<\/p>\n
Similarly, Steeves devised a system where fleets of computers compete to process AI computations. In exchange for their processing power, these \u201cminers\u201d receive Bittensor\u2019s cryptocurrency, TAO. In aggregate, Bittensor is like a decentralized server farm for AI. \u201cHow did we create a supercomputer that is bigger than any government or corporation can create with a centralized entity?\u201d Steeves said to Fortune<\/em> in 2024.<\/p>\n Bittensor isn\u2019t the most easily understood tech, but the protocol has had some serious backers. In 2024, the crypto venture capitalist Polychain held around $200 million of the cryptocurrency, another crypto VC Dao5 held $50 million, and the crypto conglomerate Digital Currency Group had around $100 million<\/p>\n Barry Silbert, the billionaire founder of Digital Currency Group, is such a believer in Bittensor that he\u2019s founded his own startup called Yuma that\u2019s dedicated to the cryptocurrency. \u201cIt is the thing that I\u2019ve gotten most excited about since Bitcoin,\u201d he said.<\/strong><\/p>\n On Monday at 8:30 a.m. New York time, Bittensor reduced the amount of daily tokens it issues from 7,200 to 3,600. Like Bitcoin, the supply of Bittensor\u2019s cryptocurrency is capped at 21 million.<\/p>\n In a research note, analysts at Grayscale, a crypto ETF issuer and a subsidiary of Barry Silbert\u2019s Digital Currency Group, said that the halving could be a \u201cpositive catalyst for price.\u201d Just a week before, the ETF issuer announced that trading in the U.S. had begun for a vehicle that gives investors exposure to Bittensor.<\/p>\n Sami Kassab, managing partner at Unsupervised Capital, a hedge fund dedicated to Bittensor, was similarly optimistic. \u201cHalvings aren\u2019t complicated. Historically, halvings have been bullish because there\u2019s simply less inventory hitting the market, \u201c he said. \u201cThe same logic applies to TAO.\u201d<\/p>\n Still, over the past 24 hours, the price of Bittensor\u2019s cryptocurrency has dropped about TK% to $TK. That doesn\u2019t mean the halving was a bust since the market often prices in such events ahead of time and, in the case Bitcoin, has often spurred subsequent booms. When Bitcoin last halved in April 2024, its price hovered around $65,000 shortly afterwards. But, by the end of the year, the world\u2019s largest cryptocurrency had rocketed to above $100,000.\u00a0<\/p>\n This is Bittensor\u2019s first halving. Its next will follow in late 2029, according to current projections.<\/p>\n<\/div>\n #Bittensor #halved #supply #Heres #means<\/p>\n","protected":false},"excerpt":{"rendered":" Early on Monday, the supply of… <\/p>\n","protected":false},"author":1,"featured_media":3845,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[3754,1211,1094,3755,3595,455,318],"_links":{"self":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/3844"}],"collection":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3844"}],"version-history":[{"count":0,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/3844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/media\/3845"}],"wp:attachment":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Who\u2019s betting on Bittensor?<\/h2>\n
When did Bittensor halve and what will come next?<\/h2>\n