Joseph Jacks Forecasts Bittensor (TAO) to Potentially Outperform Bitcoin by 5-10x Amidst Decentralized AI Surge

Joseph Jacks, founder and general partner of OSS Capital, recently highlighted the transformative potential of Bittensor, a decentralized artificial intelligence (AI) network, suggesting its native TAO token could eventually surpass Bitcoin's value by five to ten times. This bold prediction was made during the "TAO Pod" podcast, where Jacks and co-host James Altucher discussed the convergence of AI, capitalism, and cryptocurrency, including Bitcoin's recent all-time high of $213,000 on July 10, 2025.

The podcast, promoted by Jacks with the tweet, "Watch this to learn about the most exciting developments in AI, capitalism, coordination, Bitcoin and more … all in one sitting. 🧠," delves into Bittensor's unique "proof-of-useful-work" model. This model incentivizes a global network of participants to contribute computational power, datasets, and AI models through various "subnets," such as Chutes for AI inference and Dataverse for data scraping. Jacks emphasized that Bittensor permissionlessly incentivizes a significant portion of computational resources, potentially rivaling large centralized entities like Elon Musk's xAI, which operates with substantial capital expenditure.

Bittensor's decentralized approach offers a stark contrast to the vertically integrated strategies of major tech companies. While xAI's Grok 4 utilizes an estimated 200,000 GPUs, Bittensor's network aggregates between 20,000 and 100,000 GPUs without direct capital investment. This distributed model aims to democratize access to AI development, allowing individuals and smaller firms to build and train AI models without facing the prohibitive costs and monopolistic control often associated with centralized AI.

Jacks posits that Bittensor represents an evolution of capitalism, which he terms "incentivism," by creating a market where AI commodities are priced and exchanged based on utility. He noted that while Bitcoin serves as a store of value, Bittensor's network is designed to continuously produce more valuable digital commodities across diverse domains. Despite its profound potential, the network is still in its nascent stages, described as being in its "1990s internet era," requiring more user-friendly interfaces to achieve mainstream adoption beyond technical developers.

The vision for Bittensor extends beyond mere technological advancement, aiming to provide a decentralized solution against centralized power monopolies in AI. By enabling permissionless participation and fostering a competitive ecosystem of AI services, Bittensor seeks to ensure that the future of artificial intelligence remains open and accessible to humanity, rather than being concentrated in the hands of a few corporations.