Early on Monday, the supply of new cryptocurrency tied to Bittensor—a decentralized network of AI projects—dropped 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.
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—provided it can keep picking up traction in the crypto world and beyond, and if its price holds up following the new drop in supply.
Here’s an overview of exactly what Bittensor is, who’s betting on its success, and what some crypto prognosticators say will come next after its halving:
What is Bittensor?
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.
