AI and Cryptocurrency:
Artificial Intelligence is a concept that uses machine learning algorithms and historical datasets to analyze and predict the outcome. It is also used to enhance the capabilities of an existing machine by using the predictability feature of AI. The goal of AI is to achieve the human level of intelligence and apply it in various industry sectors and let the machines perform most of the operations – and probably outdo humans in most of the scenarios.
Separating AI from Cryptocurrency
However, Cryptocurrency is an encrypted digital currency that uses Blockchain technology to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrency uses a decentralized platform for creating and distributing currencies instead of the centralized banking systems followed globally. The decentralization is the result of distributed ledger made possible by Blockchain technology. All the financial transactions are stored in a publicly distributed database.
Hype surpasses reality
The buzz around keywords like AI, Blockchain, and Cryptocurrency, is high, which makes every startup to cash in on the trend. Even if the product or services offering has a tinge of AI or Blockchain, companies soon start incorporating these keywords for marketing and attracting additional investments. Several genuine applications make use of AI or Blockchain, but the functionalities are pretty specific. It means apps are using the technologies for specific functionalities.
Interestingly, according to Forbes magazine, companies that promote their products or services using the buzzing technologies are likely to receive 15-50% more funding when compared to using other technologies. Therefore, several companies want to milk the opportunity to get the money pouring in. Hence, real-time applications are pretty limited and specific than the hype they are currently creating in the market.
AI is real and here to stay
All said earlier, AI technology is still real, and several developments in the domain are happening on the ground. The technology will evolve further and spread its wings in various applications using machine learning algorithms and the massive data explosion that’s happened in the last few years. The algorithms will empower the AI architecture to equip itself with special functions and abilities that can predict the upcoming events and perform accordingly.
Can AI and cryptocurrencies work together?
Cryptocurrencies, on the other hand, are financial assets that also utilize Blockchain and AI. AI functionalities are used to power cryptocurrencies. Artificial Intelligence is used in cryptocurrencies for using to trade by predicting trillions of transactions and arriving at an optimized pattern that is supposed to get the best returns. For illustration, if an individual places an order for a bulk of bitcoin via a trading platform that is powered by AI, the trading platform can place an automated order and trade it against other currencies when there is a price surge and exchange other currency for more bitcoins. Therefore, AI and cryptocurrencies can work together for the benefit of customers.
Although the technologies may sound confusing, they are two distinct technologies that are coming together to offer the best trading performance for individuals and trading companies.