Jim Borger

With the first Bittensor halving complete, I can’t help but recall Bitcoin’s first halving, which I was fortunate enough to witness.  History doesn’t repeat, but the rhymes are unmistakable; both the parallels and differences between the two are striking: Same: A Decentralized Alternative for Global Challenges Bitcoin launched during an unprecedented wave of central bank liquidity. By its 2012 halving, the Fed had tripled its balance sheet to $3 trillion, demonstrating how deeply monetary systems are tied to political interests. For many, this was the first time they questioned the foundations of money, who controlled it, and what these trends meant for the future. Meanwhile, in a fringe corner of the internet, a radically different idea was taking shape. Bitcoin’s halving showed that predetermined disinflation was possible, even as nation states inflated global money supply at a historic scale. Today, AI is expanding at an exponential rate, challenging entrenched industries and even our sense of humanity. This movement has been dominated by massive corporations - each with its own agenda - while governments scramble to regulate. And once again, in a fringe corner of the web, Bittensor offers a decentralized alternative: open competition driving AI infrastructure, training, and application without centralized control. Same: Technical Familiarity Remains a Hurdle Participating in Bitcoin in 2012 required technical knowledge. Public information was scarce, and understanding was predicated on familiarity with hash functions, peer-to-peer networking, and monetary plumbing. Most users still relied on the reference client and downloaded the full blockchain, as light clients and Coinbase had just emerged. Bittensor feels similar today. In addition to general crypto knowledge, understanding the network means having a grasp of AI infrastructure as well. Browser wallets exist, but the command line interface remains the most powerful way to interact with Tao and subnets. We’ve seen Bittensor investment funds recently launch and tooling is improving rapidly, but genuine understanding of the core fundamentals remains limited to relatively few. Same: Small Community with a Rising Tide Early Bitcoin was driven by cypherpunks, libertarians, and curious technologists - people motivated by ideals, not just profit. The small community was driven largely by personal relationships. People who would eventually become leaders of major companies (and serious competitors with one another) openly collaborated and shared ideas for the sake of the broader industry. After the 2012 halving, Bitcoin’s price surged 20x, attracting venture capitalists, megacorps, scammers, and the press. The core enthusiasts remained, and even grew, but signal became harder to find amid the noise. Bittensor is still in its heavy signal phase. While monetary opportunity exists – as it always did with Bitcoin - general uncertainty and technical complexity remains a hurdle for the general populace. Conviction about Bittensor’s potential impact remains a driving force for those currently involved, and it's still easy to reach leaders on X, Discord, conferences, and in commercial collaborations. There will never be a time as good as today to build relationships in this industry. Same: No Precedent for Valuation Bitcoin was completely novel at launch, making valuation nearly impossible. Was it a payment network? A store of value? A tool for buying drugs? In 2012, debates raged. Thirteen years and a 7,500x jump in value later, investment banks regularly publish Bitcoin research while sovereigns incorporate it into sophisticated strategies. Bittensor faces similar questions today. The network actively incentivizes productive outputs, but how does that translate to investment value? What is the relative value of Tao and subnet tokens? What makes a sustainable subnet? Answers will come through debate and experimentation, but for now, long-term valuation is yet to be clearly defined. Different: Crypto Plumbing Is Already Mature When buying Bitcoin in 2012, I had to hand cash to a convenience store clerk and punch numbers into a MoneyGram phone, hoping my account at Mt. Gox would be credited in the coming days. Bittensor benefits from more than a decade of crypto infrastructure - exchanges, companies, and regulations - enabling rapid capital flow when interest spikes. But this maturity also makes attention harder to capture. Crypto is vast now; garnering focus on distributed AI is far more challenging than when Bitcoin was the only game in town. Different: Risk Tolerance Has Changed Bitcoin thrived on its free, unregulated nature, both ideologically and practically. Today, institutional capital, regulatory frameworks, and existing reputations of people involved mean risk tolerance is far lower. Imagine the community reaction if something as "unsavory" as Silk Road appeared on a Bittensor subnet. Different: Diversity of Involved Parties Bitcoin’s early days were dominated by Austrian economists and cryptography wonks. Bittensor subnets have already attracted a far broader mix: scientists, cybercrime experts, quantitative traders, marketers, and graphics specialists, reflecting AI’s sweeping potential across industries. In 2012, Bitcoin offered an alternative to centralized money. As 2025 comes to a close, Bittensor is offering us an alternative to centralized intelligence. I assumed Bitcoin’s wild ride was a once-in-a-lifetime event. Now, as I approach my second first halving, I have a sense we just might get one more.

Digging into the effects of the December 11th TAO halvening on subnets today. Specifically looking into 'unintended' effects of the design. There's never been a halvening with this specific design before, so we THINK we know what will happen, but nobody knows for SURE.