Up 137%, Should This Red-Hot Artificial Intelligence Cryptocurrency Be in Your Portfolio for 2025?

Recently, some crypto traders have begun talking about Bittensor as “Bitcoin for AI.” This suggests that Bittensor could eventually become the premier digital currency used to power the AI economy.

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The idea of creating a digital currency for AI is something that Cathie Wood has also explored. As she pointed out last year, it’s not efficient to use dollars to pay for AI-based goods and services. There needs to be a digital currency that AI bots can use and trade. She thinks Bitcoin will be that currency.

Admittedly, it’s easy to scoff at the notion of Bittensor being “Bitcoin for AI.” It sounds like the type of marketing fluff that often comes out of Silicon Valley, where start-ups are trying to attract the money of venture capitalists. Oh yes, we’re “the Netflix for X.” Or, we’re “the Airbnb for Y.”

But here’s the thing — Bittensor actually does share some characteristics with Bitcoin. Like Bitcoin, it’s mined using computing power and electricity. And, just like Bitcoin, Bittensor has a limited lifetime supply of 21 million coins. That introduces inherent scarcity, especially when you consider that many cryptocurrencies have coin supplies measured in the billions or even trillions of coins.

Over time, this scarcity will theoretically help push Bittensor’s price higher. As the Bittensor ecosystem grows, it will lead to greater demand for TAO tokens. As long as demand outpaces supply, the price should move upward over time.

When it comes to investing in AI crypto tokens, investors have choices. If you look at the top 100 cryptocurrencies as ranked by market cap, there are 10 different AI crypto tokens worthy of consideration. So it’s not like Bittensor is the only way to play the “convergence of AI and crypto” investment thesis.

Moreover, there’s no easy way to invest in Bittensor. Unlike Bitcoin, there’s no spot crypto exchange-traded fund (ETF) you can buy and sell. You’ll need to enter the spot cryptocurrency market yourself, and invest in it directly. And, even then, you might have a hard time buying it. It’s not currently available for trading on Coinbase Global, for example.

Bittensor is not for everyone. It should be considered a highly speculative investment only. Its upside potential is tied to the fortunes of AI, so if the AI investment trend stalls out, then the value of Bittensor will likely decline. That being said, I’m putting this cryptocurrency on my investment radar for 2025.

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Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Airbnb, Bitcoin, and Netflix. The Motley Fool has a disclosure policy.

Up 137%, Should This Red-Hot Artificial Intelligence Cryptocurrency Be in Your Portfolio for 2025? was originally published by The Motley Fool