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AI and Cryptocurrency: is the sum greater than its parts?

Since the invention of Bitcoin in 2008, cryptocurrencies have been growing rapidly. Nowadays, they have begun to influence the economies of whole countries. The traditional investment business has started to feel the effect of the ever-expanding cryptocurrency trading. Some financial institutions are beginning to adopt it as one of their lines of service.

Another trend that is influencing the business processes is artificial intelligence. It is penetrating all industries creating unique experiences and opening unprecedented opportunities.

The idea and concept of merging cryptocurrency trading and artificial intelligence (AI) have become quite alluring. AI is apparently experiencing its Golden Age while trading has gone digital. These latest developments suggest that using AI to automate trading can lead to much higher profits and quick returns.

However, some people like chocolate while others like pizza but the combination of chocolate and pizza can be funny. This is another way of saying that the marriage between AI and cryptocurrency should be scrutinized before we arrive at a conclusion. Thus, we will briefly look at the concerns that arise in connection with cryptocurrencies and artificial intelligence as well as at the advantages their fusion can offer.

Driving a new concept

Our economy is operating by strict rules. For example, when people lose their jobs, their employer is saving money. And the other way round – when a business implements an automation solution to save the costs, the employees are very likely to lose jobs. These rules have been working for a long time. Each new technology that allowed reducing production costs also caused a massive dismissal of workers and an increase of the unemployment rate. Naturally, there are always people who are unhappy with the technological progress and even those who actively oppose it.

AI acceptance and concerns

The revolution that the world is now witnessing is a testament to this reality. The issue of automation is not an entirely new process as most things in our world run on this framework. In the 21st century, the finance industry has started experiencing the pressure of digital disruption. On one side, it has been swept with the advance of blockchain and cryptocurrency. The new way of transacting business online with its decentralized structure has already attracted quite a lot of supporters all over the world.

On the other side, similar to many other industries, the realm of finance is being irreversibly transformed by automation. Thus, the financial sector is gradually adopting the advanced technologies that provide the possibility of streamlining its flows. One of the technologies revolutionizing finance is artificial intelligence that allows creating sophisticated analytical algorithms and generating highly accurate predictions.

However, people who operate the conventional stock market system may fight against the changes that are coming. The truth is people will need to adapt to the new development as it will ultimately create rich benefits for all. AI trading systems predict new market trends better than humans; they even trade better than us. Their convenience and reliability are the factors that drive AI adoption across the globe. Moreover, some financial institutions are integrating AI-based solutions to improve the quality of their service. While they also continue their traditional line of business, artificial intelligence gives unprecedented opportunities to their customers.

AI investment trends

AI trading systems can learn how to use new data and can use the extensive historical data on the past market trends to build predictive models. Hedge funds and giant investment banks have found the AI systems to be extremely attractive. This has led them to start adapting new working models, as new players are beginning to emerge.

For example, Man Group, one of the largest Wall Street hedge funds, has finally started implementing AI-based algorithms and was surprised with their performance. The fund was initially reluctant to experiment with a new technology. However, when their experts tried this new approach, the outcome was stunning. The algorithm was able to identify the opportunities that the experts missed and to generate the strategies that brought the highest profit possible under those circumstances.

In its turn, a top line company is launching Wolf Coin based on the current dynamics observed on the market. The goal is to build a robust investment platform for people investing as little as $10 to profit. The result of this move has brought a fresh twist to the way people are looking at the future. Anyone can take advantage of this channel.

The concept of blockchain in the investment industry

Generally, whether the business communication or supply chains are concerned, blockchain technology is becoming increasingly interesting for tech experts. The blockchain technology rests on collaboration and trust, but, when AI comes into the equation, these factors become even more important.

For traders, the attractiveness of the blockchain technology is in its decentralized nature, the swiftness of transactions, the transparency, and straightforwardness. The distributed structure of blockchain removes the need of middlemen in the transactions, thus drastically reducing the maintenance and administration costs. On the other hand, in a blockchain, the regulation is minimal, as users themselves control the transaction integrity. The transactions are performed with self-executing smart contracts that ensure that both sides fulfill their responsibility.

These factors make blockchain and, particularly, cryptocurrency very appealing to thousands of individual investors and investment companies. As a result, the world is now full of various cryptocurrencies and blockchain-based enterprises.

However, unlike the traditional business model, it is not enough to build an alternative environment in the world of digital trading. One needs to create conditions where everyone’s success depends on the success of the joint effort. This can be achieved by setting up effective security rules and verification mechanisms that can guarantee the protection of all members of a cryptocurrency trading fund. By selecting a reliable investment company using the latest technology and applying adequate security measures, you can rest assured that your investment will be protected and will bring decent profit.