Cryptocurrency and Artificial Intelligence: Is It Reality or Propaganda?
Artificial Intelligence (AI) has been gaining great momentum recently so much so that it is already being considered as the next big thing. As AI makes its impact felt across different sectors, what impact it will have on the burgeoning crypto space remains to be seen.
Startups associated with AI-based projects are reportedly getting 15-50% more funds as compared to other tech projects. Many companies are cashing in on this AI hype. This has gone a good way to undermine the actual progress of AI-based projects or technologies.
AI is now well recognized and has already made an enviable position in the conventional financial markets. To be effective at the optimal level, AI requires an extensive repository of data for machine learning. The stock market has a huge database of empirical data.
A recent research done on 23 hedge funds by Eurekahedge revealed that computers produced much better output when AI was used as compared to computers with human intervention. There is convincing evidence proving that AI will soon be able to out-trade humans in this domain— AI-powered algorithmic trading will definitely reign.
This raises the question as to what would be the impact of AI in the crypto space.
By now, AI has already marked its presence; it is just not scattered evenly.
Squilla Capital, an investment firm that analyzes the crypto market and also promising crypto projects powered by AI, machine learning, and big data. Danil Myakin, the co-founder of this organization, has said,
Myakin also stated that a set of computers equipped with machine learning would show more reliable and precise analysis than human beings. This premise has proved to be true in most conventional financial markets, and therefore, is now being implemented in the crypto space as well. It is also important to know how AI is being implemented within the space.
AI seems to be making it big in computerized trading, especially high-frequency trading (HFT), auto trading through API, and more. Besides these, AI is also proving to be very useful in determining the sentiments in the market and the community across different social media channels.
AI is not a universal remedy for every challenge of the crypto sphere; it will not oust human traders and make them redundant immediately. Nonetheless, it is already changing the work culture within the sector by ensuring fast, easy, and hassle-free order execution, reliable and instant detection of bots, bugs and scammers. AI definitely has the potential to transform the crypto sphere in a big way.