AI – the Fourth Industrial Revolution
“If we die, it would keep trading”. What part will AI play in the cryptocurrency market? BTCMEX on the future of finance and machine learning.
Do crypto trading and artificial intelligence go well together? This is one of the most popular questions among today’s crypto traders. When we talk about AI, we usually have the machine learning in minds. Machine learning is the way to program a computer in such a way that it learns from the input data and is able to make predictions about the future.
Automating everything is not a new idea and has been the driving force behind many patents and industry developments. AI trading systems predict new market trends better than humans. They even trade better than us. It’s possible because they can rely on large databases of historical market information to build predictive models, in addition to being able to actively learn using new data. This makes AI trading systems extremely attractive for many top cryptocurrency market players. Giant investment banks and hedge funds have already started utilizing AI in trading.
Experts are calling for the age of AI and high-performance scalable computing. The crypto industry has various applications where machine learning and AI can be used to make cryptocurrency attractive to the public and lead to mass adoption. For instance, efficiently optimizing energy consumption during the mining process. For the most part, the energy it takes to mine Bitcoin has been a concern, and certain programs can reduce the energy costs.
AI has also significantly improved the blockchain security. The recent interest in applying artificial intelligence to improve the security of high volume transactions resulting from blockchain technology has been more than successful. By removing the human dependency of the network and utilizing self-learning technology, AI has been playing a significant role in making sure the blockchain is not being hacked.
AI can prevent unauthorized mining. Because it becomes profitable to verify a transaction, hackers are incentivized to increase their chances of being selected. This has led to some companies employing artificial intelligence to ensure that the selection and rewards process is fair, legitimate, and cannot be interfered.
Most cryptocurrency users store and manage their funds in a digital wallet. AI serves as an additional level of security for digital assets storage. Not only can AI work to create systems that are increasingly more difficult to hack, but it can also recognize and prevent such attempts.
Unlike the stock markets, the cryptocurrency market never closes and never sleeps. As a result of the volatility of the market, trading bots have become increasingly popular among Bitcoin traders, allowing them control over their trades even without constantly monitoring the market.