What Is TAO, the Bittensor Token Causing Friction Between Barry Silbert and Bitcoiners?
TAO, the native token of the AI-focused blockchain Bittensor, is creating a rift between Digital Currency Group founder Barry Silbert and Bitcoin supporters. Both TAO and Bitcoin (BTC) have a fixed supply of 21 million tokens and undergo block reward halvings. However, their purposes differ: Bittensor aims to create a decentralized AI market, while Bitcoin was designed primarily as a peer-to-peer payment method and store of value. Critics, including Bitcoin advocate Parker Lewis, have criticized Silbert for equating TAO with Bitcoin, labeling such comparisons as lazy attacks. TAO has experienced significant price volatility, peaking at over $700 in 2024 before dropping to around $200, whereas Bitcoin has seen steadier growth, currently priced around $90,000. Grayscale Investments, part of Digital Currency Group, manages a Bittensor Trust with about $8 million in assets, alongside its more substantial Bitcoin trust. The underlying differences in the projects' ethos and use cases reflect the ongoing tensions within the cryptocurrency community.
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