In a shocking turn of events, Bittensor’s TAO token has sparked controversy among Bitcoiners and industry experts alike, with Digital Currency Group founder Barry Silbert comparing it to bitcoin in a recent podcast episode.
What Is TAO, the Bittensor Token Causing Friction Between Barry Silbert and Bitcoiners?
TAO, like BTC, has a fixed supply of 21 million tokens and undergoes block reward halvings.
But the project itself is entirely different as it focuses on AI and machine learning. Price volatility of TAO has also been much higher than BTC.
Understanding the Differences Between Bittensor‘s TAO and Bitcoin
Digital Currency Group founder Barry Silbert sparked controversy by comparing Bittensor‘s native token, TAO, to bitcoin in a recent podcast episode. While there are some similarities between the two projects, such as their capped supply and block reward halving events, they have distinct differences in terms of ethos and use case.
Barry Silbert is a well-known entrepreneur and investor in the cryptocurrency space.
He is the founder of SecondMarket, a platform for buying and selling private company shares, and The Bitcoin Standard Institute, an educational organization focused on promoting 'bitcoin' adoption.
Silbert has been a prominent advocate for 'bitcoin' and has invested in several notable companies, including Coinbase and BitGo.
The AI-Powered Blockchain: A Peer-to-Peer AI Market
Bittensor is a decentralized network that merges blockchain technology with machine learning, designed to become a peer-to-peer AI market where users can share and monetize AI models. This approach sets it apart from bitcoin, which was spawned out of the Libertarian cypherpunk era as a peer-to-peer payment method.
Bittensor is a decentralized AI network that enables users to create, share, and monetize their own AI models.
It utilizes a novel consensus algorithm called 'Tensor Consensus' to secure the network and ensure the integrity of AI model training data.
Bittensor allows developers to build and deploy AI applications without relying on centralized infrastructure, promoting transparency, security, and scalability.
Volatility and Market Performance
The TAO token has experienced extreme volatility since its release two years ago, with prices rising to above $700 on two occasions in 2024 before plummeting to around $200 both times. In contrast, bitcoin’s price has risen from $22,000 since the start of 2023 to as high as ‘$109,000’ in January, with a market cap currently standing at around $1.8 trillion.
TAO has a market cap around $2.98 billion, according to data on CoinMarketCap. Its price is currently trading around $339.
Grayscale Investments and the Bittensor Trust
Grayscale Investments, one of Digital Currency Group’s subsidiaries, runs a Bittensor Trust with around $8 million in assets under management. Additionally, it has a spot bitcoin exchange-traded fund (GBTC) with $16.6 billion under management as well as a bitcoin mini trust ETF.
Silbert responded to criticism by calling the comparison of TAO to bitcoin a ‘lazy attack’ and urging critics to do better.
Barry Silbert is an American entrepreneur and investor.
He is the founder of The Decrypt Media company, which focuses on cryptocurrency news and education.
Silbert also co-founded the Bitcoin Opportunity Fund, a venture capital fund investing in blockchain-related startups.
He has been involved in various high-profile investments and has written extensively about 'cryptocurrency' and its potential applications.
