Bittensor Halving: Expected Volatility in TAO Price

Exciting Development in the Bittensor Network

The Bittensor network, which integrates artificial intelligence and decentralized systems, will hold its first halving event on December 14th. This event marks the completion of the network's four-year first cycle. As a result of the halving, the daily issuance of the local TAO token will decrease from 7,200 to 3,600.

Importance of the Halving and Market Effects

This halving represents an important milestone for Bittensor, reflecting Bitcoin's emission reduction model. Experts predict that the halving will create a positive response in prices, but warn investors against the tendency to "sell the news."

Halving Details

Bittensor is designed with the goal of creating a scarcity similar to Bitcoin, with a fixed supply cap of 21 million TAO. According to Taostats data, the circulating supply has reached 10,451,753 TAO, coming close to the halving threshold. Bittensor's halving mechanism activates when the circulating supply reaches 10.5 million tokens. This change could also affect the rewards of network participants such as miners and validators.

Opportunities for Investors

Halvings are generally viewed as a bullish catalyst in the markets. Historical examples like Bitcoin, Litecoin, and Bitcoin Cash demonstrate market rallies driven by tightening supply dynamics and positive investor psychology. Grayscale Research Analyst Will Ogden Moore notes that slowing emissions will increase the scarcity of TAO, which could have a positive effect on prices.

Moore also indicates that Bittensor's first halving is a sign that the network is maturing. "The early success of subnet-based applications and the increase in institutional investments combined with the upcoming halving could be significant catalysts for price," he evaluated the situation.

Various Service Areas of Bittensor

Bittensor operates as an open network at the intersection of artificial intelligence and crypto assets. Users can contribute to improving artificial intelligence systems. The network offers various services in areas such as computation, data storage, and deepfake detection, with 129 active subnets dedicated to different artificial intelligence tasks.