Artificial intelligence (AI) is a set of systems that perform narrow functions in a particular issue. For example, an AI that can recognize voices is not able to do something else. The powers of AI solutions are just limitless. There are also diligent attempts to create AIs that can predict the price of bitcoins. The first attempts to create artificial intelligence that could predict the BTC rates were back in 2017. Serbian developer Ognjen Gatalo created a bot that collected data from blockchain.com. Unfortunately, he did not take into account many factors that affect Bitcoin fluctuations and was only able to collect historical data on prices.
The next who seriously tried to create artificial intelligence to predict the price of bitcoin was the American scientist Marco Santos. The developer hoped that the bot would analyze the crypto rate for the last month and be able to make a forecast for the next 2 weeks. The result was almost the same as in the previous study, but it is worth noting that the data became more accurate. Anyway, the information allowed people to get an idea of a predicted BTC rate before they contact bitcoin casino Canada and make their deposit. To make this step even safer, you could watch NativeCasinos, where all the info on cryptogambling is gathered.
American developer Federico Riveroll has developed an even more accurate artificial intelligence solution, which has already taken into account more various factors. The scientist took for analysis not only historical data but also the headlines of popular publications and news. Thanks to these correlations, the forecast accuracy reached about 65%. Of course, such a figure cannot guarantee an accurate prediction of the price of bitcoin, but it shows that scientists are going in the right direction.
Reasons That Hinder Progress Artificial Intelligence
The success and effectiveness of solving new problems depend on the ability to highlight only essential information, which requires flexibility in abstraction methods. On the other hand, an ordinary program establishes one of its own way of interpreting data, which is why its work looks biased and purely mechanical. And flexibility and versatility translate into significant resource costs for non-typical tasks. That is, the system from intelligence returns to brute force.
The term “artificial intelligence” has been around for many years. It pretty much includes every new technology that has near-human intelligence to accomplish a task. AI models are used to assess, understand, classify, and predict using relevant datasets. Machine learning then cleans up the data as it gathers information, creating more useful datasets to use. But since an intellectual problem is solved only by a person, an analyst, or a programmer, not knowing how to entrust this to a machine can cost a lot. As a result, a single abstraction model, a system of constructive entities and algorithms is created.
Nearest Bitcoin Price Predictions
At the time of writing this post, the value of bitcoin has changed its all-time high at around $ 58,000. Even the sceptical statements of Elon Musk and Bill Gates did not prevent the growth of BTC quotes, although the cryptocurrency is usually sensitive to their words. Tesla CEO Elon Musk called the automaker’s $1.5 billion investment in bitcoin reckless. The billionaire stressed that the company’s actions do not directly reflect his opinion, since bitcoin is “simply a less stupid form of liquidity than savings in cash.”
It is also worth noting that analysts from the American investment bank JPMorgan Chase pointed out in a note to investors that Bitcoin is the worst way to protect against falling stock prices. In their opinion, the current price of bitcoin is significantly higher than its fair value. Analysts believe that large investments in bitcoin increase its correlation with cyclical assets, and this makes the asset less attractive for portfolio diversification.
In January, JPMorgan strategists John Normand and Federico Manicardi expressed a similar view. In their opinion, the main digital coin becomes a cyclical asset and becomes dependent on the business cycle. Cyclical assets are in demand when the economy is performing well, but when economic performance weakens, such assets are disposed of first.
Bitcoin investment proponents, often refer to cryptocurrency as “digital gold” and see it as a hedge against inflationary risks caused by stimulating economic policies from central banks and governments around the world. However, as noted by JP Morgan, in order for the capitalization of bitcoin to catch up with the total private sector investment in gold through exchange-traded funds, coins and bars, the cryptocurrency rate must rise to $ 146 thousand per coin.
Conclusion
Based on the above, it is worth noting that scientists are still in the process of finding the perfect algorithms that can accurately predict the price of bitcoin. But for now, the price is rising and falling due to factors such as news headlines and reviews of giant bitcoin investing companies. We can only keep an eye on the market condition to know that actual situation.