Subnets as New Permissionless Companies

Episode Description:

In this episode, James and JJ discuss fiat inflation insanity (70-90% purchasing power loss), Bitcoin as inflation solution (not hedge), TAO universe updates (halving arguments/bullishness, subnet tipping points, institutional engagement like DCG index funds/Grayscale ETF), macro risk-on environment (rate cuts, stablecoins, crypto policy, state Bitcoin reserves), increased Bittensor content/tutorials, explaining Bittensor's complexity (vs. Bitcoin), equity evolution (alpha tokens as permissionless value creation), DCF vs. incentive analysis for valuations, subnets undervalued vs. AI unicorns, catalysts (halving reducing selling, deregistration boosting demand, Ridges commercial product, institutional buying pressure), and TAO decoupling from Bitcoin/Ethereum.

Key Timestamps & Topics:

• 00:00:00 - Intro: Fiat insanity; Bitcoin as inflation solution; outrage at low savings rates.
• 00:01:00 - TAO Updates: Halving bullishness; subnet tipping points; institutional products (DCG/Grayscale).
• 00:02:00 - Three Mindshare Drivers: Halving debates, subnet news, institutional engagement creating TAO demand.
• 00:03:00 - Macro Environment: Risk-on (rate cuts, stablecoins, policy); Florida/Texas Bitcoin reserves.
• 00:04:00 - Bittensor Content Boom: Tutorials/videos/documentaries; explaining complexity.
• 00:10:00 - Equity Evolution: Alpha tokens as permissionless value; buying resources/companies.
• 00:15:00 - Valuations: DCF vs. incentive analysis; subnets undervalued vs. failing AI unicorns.
• 00:20:00 - Catalysts: Halving/supply drop, deregistration/demand rise, Ridges product, institutional inflows.
• 00:25:00 - TAO Decoupling: Multi-month highs amid Bitcoin/Ethereum crashes.
• 01:00:00 - Institutional Adoption: DCG funds/Grayscale ETF enabling subnet access.
• 01:10:00 - Stablecoins: $27T volume as crypto use case.
• 01:15:00 - AI Unicorns: 200-300 overvalued/failing vs. Bittensor's undervalued subnets.
• 01:20:00 - Equity/VC Role: Evolving philosophy; catalysts unstoppable.
• 01:26:00 - Wrap-Up: Exciting months ahead; consistent podcasts.
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Key Takeaways:

• Fiat inflation erodes 70-90% purchasing power; Bitcoin solves it via finite supply—TAO builds on this with abstracted incentives.
• TAO catalysts: Halving reduces selling, deregistration boosts demand, Ridges product rivals $100B+ centralized AI, institutional products (DCG/Grayscale) create buying pressure.
• Institutional adoption: DCG index funds/Grayscale ETF enable accredited access to subnets—converts to TAO, decoupling from Bitcoin/Ethereum crashes.
• Equity evolution: Alpha tokens enable permissionless value creation (buy resources/companies)—undervalued subnets vs. 200-300 failing AI unicorns with negative margins.
• Bittensor's complexity: Harder than Bitcoin but penetrable; subnets like Ridges/Bit Minds/404 Gen lead globally—philosophical community drives innovation.

Resources & Links:

• Bittensor Official: bittensor.com
• Taostats (Explorer/TAO App): taostats.io
• xAI: x.ai
• Follow Hosts: @jaltucher & @josephjacks_ on X