Evaluating Top AI Cryptos: Bit Tensor and Near Protocol

Good evening, my degenerate crypto friends. I hope you’re doing well. I’m doing great and wanted to discuss the top two AI cryptos: Bit Tensor and Near Protocol. Which one should we buy, or should we consider both? They aren’t really competing with each other as they serve different purposes. Bit Tensor is currently ranked 37th in market cap, while Near Protocol is 45th. Both have recently moved up, along with most altcoins. Near, in particular, has seen a significant jump from around $1 to about $1.60 in the past couple of weeks. Bit Tensor has also shown good movement, rising above $3.20.

Understanding Near Protocol

I’ve always been curious about Near Protocol. It started as a layer 1 blockchain around 2020 or 2021 and has remained relevant. When AI became more prominent, Near quickly shifted focus to AI. I prefer layer 1 blockchains because they have the potential for the most network effect, adoption, and applications. Near Protocol is building specifically for AI interactions, allowing AI agents to operate autonomously.

Near Protocol offers private execution, solving the issue of data privacy when using AI in the cloud. It uses a trusted execution environment to ensure data privacy. Near targets AI agents rather than just AI apps, aiming for autonomous AI agents that can operate economically online. This includes AI travel agents booking flights, AI researchers paying for data, and AI shopping assistants making purchases. Near is building infrastructure for a machine-to-machine economy, with an account system that supports AI agents in signing transactions, moving money, and interacting with apps.

Near has addressed issues like expensive gas fees and complicated user interfaces with cheap transactions, fast finality, and flexible account permissions. The idea is that AI agents shouldn’t need to manage multiple chains manually. Near aims to coordinate these processes, making it a promising project. Despite its low price, Near has shown resilience and remains in the top 50. It’s a great investment opportunity, though not financial advice. Do your own research.

Exploring Bit Tensor

Bit Tensor has also been moving up recently. Its all-time high isn’t much higher than its current price, making it less of a bargain compared to Near. Bit Tensor is divided into subnets, each specializing in a specific AI task like coding, text generation, or image generation. Developers can connect to these subnets to use AI services, offering a decentralized alternative to central AI providers.

Bit Tensor treats intelligence as an economic commodity, rewarding useful outputs. However, the network’s token, TOAO, is inflationary, similar to play-to-earn games. This model relies on new participants to sustain itself, which can lead to token inflation. While decentralized AI could be valuable, the incentive model poses risks. The network’s success depends on real economic usage offsetting emissions and whether companies and developers will rely on Bit Tensor services.

Centralized AI companies currently dominate in terms of model quality and infrastructure. Bit Tensor’s incentive model may not be sustainable, and its decentralization could lead to issues with quality and service. While the concept is interesting, the execution and incentive model raise concerns.

Speculation in Crypto Investments

People are making money because others are paying them with Bit Tens or tokens. However, how long can this really last? That’s just my opinion. Crypto is highly speculative, and it could still perform well even without real adoption. Who knows? Personally, I prefer Near and would stick with it. That’s just my two cents.

Closing Thoughts

That’s it for today. I hope you all have a great evening. Enjoy your life, cherish your families, and be grateful for all the wonderful things we have. I’ll see you next time.