Jul 15 • General discussion
TAO FULLY EXPLAINED
In the words of Siam Kidd, here is TAO Bittensor fully explained....
What Is BitTensor (TAO)?
BitTensor is a decentralized AI network designed to incentivize intelligence — not just raw compute power like Bitcoin. It’s built to allow anyone to contribute, train, or run AI models and get rewarded in TAO tokens for providing useful outputs. Think of it as:
- The internet of AI – a global network for intelligence sharing and transfer.
- The “Linux” of AI – quietly powering future AI products and tools in the background.
🧠 Key Concepts & Analogies
- Like Alphabet/Google: BitTensor is a parent protocol with 100+ "subnets" (like YouTube, Maps, etc.) – each is an independent AI startup doing something unique.
- Like the S&P 500 for AI: TAO gives you exposure to a wide range of decentralized AI startups — it’s a “tracker fund” for AI.
- AI App Store: Just as Ethereum was a platform to build dApps, BitTensor is a platform for decentralized AI services.
🛠️ How It Works
- The network is made up of subnets (128 and growing), each focused on a specific AI task (e.g., image generation, protein folding, video compression).
- Validators evaluate responses from miners (the AI participants) and reward the best results.
- Every subnet has its own liquidity pool (TAO + subnet token), and the only way to access subnets is by holding TAO.
🧩 Use Cases / Subnet Examples
- Celium: GPU rental (competes with CoreWeave).
- Gradient: One-click machine learning training (cheaper & faster than AWS).
- Shoots: App deployment.
- Nova / MetaNova: Drug discovery.
- Hippius: Cloud storage (90% cheaper than Google).
- Video: Video compression and upscaling (50–90% cheaper).
📈 Why This Matters for Investors
- Siam Kidd (author) calls BitTensor a “virgin landscape” like early Bitcoin, Ethereum, or the internet.
- It’s not “just another token”; it’s an infrastructure layer enabling the decentralized AI movement.
- Only 21M TAO tokens will ever exist, mirroring Bitcoin’s scarcity model.
📊 Price Forecast & Market Position
- TAO is positioned to be a top AI token in the next bull cycle (2025-2026).
- Author models potential prices from $3,400 (worst case) to $35,000+ (bull spike) depending on: Total crypto market cap ($7T–$12T forecasted). BitTensor’s market share (0.5%–3%).
⛏️ Emissions & Incentives
- Unlike Bitcoin, which rewards hash power, BitTensor rewards “proof of useful work” — real-world AI tasks.
- Rewards go to: Validators (41%) Miners (41%) Subnet creators (18%) Plus, you can stake TAO to earn passive rewards.
🧪 Strategic Adoption Already Happening
- Public companies like Katana, Sephello, and TOX (formerly SNPX) are adding TAO to their balance sheets.
- Barry Silbert (DCG, Grayscale) has gone “all-in” via a new BitTensor-focused firm: Yuma AI.
🧠 Why It’s Revolutionary
- You couldn’t own TCP/IP or the internet in the ‘90s. But you can own a piece of the decentralized AI internet through TAO.
- BitTensor is quietly building infrastructure that could one day power the backend of agents, robotics, drug discovery, cloud platforms, and more.
✅ Bottom Line
BitTensor is:
- A bet on the decentralized future of AI.
- A platform for real-world AI capability development.
- A token (TAO) that captures value from a growing network of AI businesses.
TAO isn’t just a crypto play — it’s a long-term bet on the infrastructure of future artificial general intelligence.
........ I've basically used chat gpt to summarise one of Siam Kidds latest videos. For more info on TAO from an actual expert - see Siam's YouTube channel.
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TAO FULLY EXPLAINED
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