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How to Invest in Crypto Sectors

How to Invest in Crypto Sectors

🤖 Bittensor: Decentralized AI, Internet Capital's Crypto Sectors, Markets: Bullish Amid FED Rate Cut 🔪

Internet Capital
September 23, 2024

gm friends —

CRYPTO FINALLY WENT UP - and now everyone is bullish again. It’s funny how just a little bit of positive price action can change investors’ whole outlook.

Regardless, we have a great newsletter today, and are excited to introduce Internet Capital’s Crypto Sectors! This will be a recurring section focused on helping you identify trends and opportunities across different crypto sectors.

Let us know what you think! Today’s sections:

🔪 Markets: Bullish Amid FED Rate Cut
💰 Introduction to Internet Capital’s Crypto Sectors
🤖 Bittensor: Decentralized AI

Check out this week’s YouTube show for a deeper dive!

Want to be a better crypto investor? Subscribe, follow us on X, and check out our YouTube Channel to never miss an update - thanks for reading!

Markets: Bullish Amid FED Rate Cuts

Crypto markets move FAST. Returns are typically concentrated in short, explosive periods. Research shows that a significant portion of gains can occur within just a few weeks or months. If investors miss these key moments, they may forgo a large portion of potential returns.

This pattern has been observed repeatedly, with Bitcoin and other major crypto assets exhibiting extreme return days that drive overall performance. Missing just a handful of these days can dramatically reduce gains, which is why many advocate for a long-term holding strategy (HODL).

As we look ahead, the Federal Reserve's shift towards a rate-cutting cycle could be the catalyst that sparks the next wave of intense market activity. Historically, such monetary easing has fueled risk-on sentiment across financial markets, and crypto has often been a beneficiary of this environment. If history is any guide, we might be on the brink of one of these high-return periods. Bullish!

Market takes (we’re going to start sharing only institutional research (high-quality) reports from now on):

VanEck Mid-September 2024 Bitcoin ChainCheck: 1-Year Review Edition [VanEck]
Weekly: The [Fed] Pivot [Coinbase]
How Ether May Add Value to a Portfolio [Fidelity]

Crypto Sectors Analysis

We're excited to introduce a new section to our newsletter: "Internet Capital's Crypto Sectors." In this segment, we'll break down the crypto market into distinct sectors, such as DeFi, NFTs, Layer 1s, and more, each with its own unique dynamics and opportunities.

Every week, we'll track and analyze the biggest tokens within these sectors, providing you with an index that reflects their performance. Alongside the index, we'll offer insights into weekly returns and highlight key developments that are driving these sectors forward.

Next week we’ll have the first complete section with a description of each project and analysis! For now, let me know if you have any feedback/ideas!

Majors: Bitcoin, Ethereum, Solana

DeFi: Aave, Uniswap, Maker, Synthetix

L2: Optimism, Arbitrum, ZKsync, Polygon

Alt L1: Avalanche, Binance Smart Chain, Ton Network, TRON, NEAR, Atpos

MEME: Dogecoin, Shiba Inu, Pepe, Dogwifhat

Infra/DA: Chainlink, Safe, Avail, Celestia, Filecoin, The Graph

AI: Bittensor, Artificial Superintelligence Alliance, Render, Akash Network

Bittensor: Decentralized AI

Source

Overview
What is it? Bittensor is a decentralized platform that enables the creation, exchange, and monetization of digital commodities such as compute power, data, storage, and machine learning models. Unlike traditional centralized systems, Bittensor is designed to empower individuals and entrepreneurs by decentralizing control and allowing anyone to participate in its ecosystem. At the heart of Bittensor is the TAO token, which fuels the production of intelligence within specialized subnets—independent networks connected to Bittensor’s main blockchain, known as the subtensor.
How does it work? 🔗 Subnets and Subtensor: Bittensor operates on a unique blockchain called the subtensor, which connects multiple independent subnets. Each subnet functions as a competitive market where participants can contribute to or consume digital commodities. These subnets can be focused on a wide range of tasks, such as machine learning, data storage, or financial predictions. Participants in these subnets can take on various roles, including subnet miners who produce digital commodities and subnet validators who assess the quality of these commodities. . 💡 Decentralized Intelligence Production: In Bittensor, “digital commodities” are transformed into intelligence through the collaborative efforts of subnet participants. Miners within a subnet complete specific tasks, such as generating predictions or processing data, and are rewarded in TAO based on the quality of their contributions. Validators ensure that high-quality work is recognized and rewarded, fostering continuous improvement within the subnet. . 🚀 Incentives and Rewards: Every 12 seconds, a new TAO token is minted and distributed among the subnets based on their performance. The TAO is then further distributed within each subnet: 18% goes to the subnet owner, 41% to validators, and 41% to miners. This incentivizes participants to maintain high standards and drive innovation within the ecosystem. Subnet owners can create and manage their subnets, setting the rules and determining how validators and miners contribute. . 🌐 Open and Competitive Participation: Bittensor is open to anyone with the skills and resources to participate. Entrepreneurs can create new subnets, while subject-matter experts can become miners or validators in existing ones. The decentralized nature of Bittensor ensures that no single entity has control, allowing for a more open and equitable ecosystem. Participants are rewarded based on their contributions.
How can you use it? 1. Become a Subnet Miner: Contribute to a subnet by performing tasks such as machine learning, data processing, or storage, and earn TAO based on the quality of your work. 2. Join as a Subnet Validator: Assess and rank the output of subnet miners, ensuring high-quality contributions are rewarded, and earn a share of the subnet’s TAO emissions. 3. Create and Manage a Subnet: Launch your own subnet, set the rules, attract miners and validators, and earn a portion of the rewards generated within your subnet. 4. Consume Digital Commodities: If you need access to digital commodities like compute power or data, you can become a consumer within a subnet, utilizing the resources generated by the network. For more detailed information, visit Bittensor’s official documentation.

Overview

What is it?

Bittensor is a decentralized platform that enables the creation, exchange, and monetization of digital commodities such as compute power, data, storage, and machine learning models. Unlike traditional centralized systems, Bittensor is designed to empower individuals and entrepreneurs by decentralizing control and allowing anyone to participate in its ecosystem. At the heart of Bittensor is the TAO token, which fuels the production of intelligence within specialized subnets—independent networks connected to Bittensor’s main blockchain, known as the subtensor.

How does it work?

🔗 Subnets and Subtensor: Bittensor operates on a unique blockchain called the subtensor, which connects multiple independent subnets. Each subnet functions as a competitive market where participants can contribute to or consume digital commodities. These subnets can be focused on a wide range of tasks, such as machine learning, data storage, or financial predictions. Participants in these subnets can take on various roles, including subnet miners who produce digital commodities and subnet validators who assess the quality of these commodities.

💡 Decentralized Intelligence Production: In Bittensor, “digital commodities” are transformed into intelligence through the collaborative efforts of subnet participants. Miners within a subnet complete specific tasks, such as generating predictions or processing data, and are rewarded in TAO based on the quality of their contributions. Validators ensure that high-quality work is recognized and rewarded, fostering continuous improvement within the subnet.

🚀 Incentives and Rewards: Every 12 seconds, a new TAO token is minted and distributed among the subnets based on their performance. The TAO is then further distributed within each subnet: 18% goes to the subnet owner, 41% to validators, and 41% to miners. This incentivizes participants to maintain high standards and drive innovation within the ecosystem. Subnet owners can create and manage their subnets, setting the rules and determining how validators and miners contribute.

🌐 Open and Competitive Participation: Bittensor is open to anyone with the skills and resources to participate. Entrepreneurs can create new subnets, while subject-matter experts can become miners or validators in existing ones. The decentralized nature of Bittensor ensures that no single entity has control, allowing for a more open and equitable ecosystem. Participants are rewarded based on their contributions.

How can you use it?

1. Become a Subnet Miner: Contribute to a subnet by performing tasks such as machine learning, data processing, or storage, and earn TAO based on the quality of your work.

2. Join as a Subnet Validator: Assess and rank the output of subnet miners, ensuring high-quality contributions are rewarded, and earn a share of the subnet’s TAO emissions.

3. Create and Manage a Subnet: Launch your own subnet, set the rules, attract miners and validators, and earn a portion of the rewards generated within your subnet.

4. Consume Digital Commodities: If you need access to digital commodities like compute power or data, you can become a consumer within a subnet, utilizing the resources generated by the network.

For more detailed information, visit Bittensor’s official documentation.

Other News

VP Harris says she'll encourage crypto business while protecting consumers at Wall Street fundraiser: Bloomberg [The Block]
ETF Inflows Surge: Bitcoin Rakes in $158M, Ether Funds Add $5M [Bitcoin.com]
SEC Approves Options Trading on BlackRock’s Spot Bitcoin ETF IBIT [Bitcoin Magazine]

Thanks for reading!

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Nothing in this newsletter is meant to be taken as legal, tax, investing, or other advice. Internet Capital is for educational and entertainment purposes only. All views are our own, and not representative of any organizations with which we are affiliated. For any business partnerships please reach out via the email [email protected]

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