Cryptocurrencies and AI-Driven Prediction

Feb 27, 2018

For many investors, the cryptocurrency market can be as complex as the blockchain technology that cryptos represent. There is a perceived randomness to the high level of volatility that exists, which has led many traditional investors to become concerned about the viability of including cryptos in their portfolios.  An important aspect to remember, however, is that crypto markets are still largely human driven. This presents an opportunity for A.I inclined investors to use machine learning simulation and analysis as a guide for investment decisions.

Humans, whether they are conscious of it or not, act in predictable patterns. Quantifying behavioral trends and establishing data sets for analysis can be vital for making accurate assessments of the crypto market. Cryptocurrencies lack the traditional fundamental background that investors often utilize to make investment decisions. As such, new valuation methods are necessary to effectively evaluate price points. As patterns in the cryptocurrency market are repeatedly studied over a longer period, the predictions based off the data will tend to be more accurate. Although crypto markets remain highly speculative, the adoption of machine learning can enable investors to capitalize on the natural patterns that form.

Although higher returns certainly make the use of machine learning more attractive for crypto investing, it is not the only beneficial factor to consider. Due to the highly unregulated nature of the crypto markets, the potential for delinquent action is magnified. Although blockchain technology is designed in part to help reduce this risk, the possibility remains. Using trend analysis can allow investors to identify variances in patterns which can signal irregular transactions. Much of the investor hesitation that exists is a result of the distrust of the security of the cryptocurrency market. Integrating A.I can work to significantly reduce these risks.

Look for the launch of the Quantamize crypto products soon.

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