Unveiling AI's True Impact on Cryptocurrency: Beyond the Hype
Summary:
This report examines the real value of AI in the crypto industry, focusing on its impacts in trading, data analytics, and user experience. While AI-powered bots have improved trading by processing large volumes of data for future price predictions, they still fall short in developing complex trading strategies. AI tools can analyze extensive blockchain data to provide vital market insights, but their accuracy is limited by off-chain market data kept by centralized exchanges. Further insights can be found in the full Cointelegraph report on their YouTube channel.
In the most recent Cointelegraph investigation, an attempt was made to discern AI's genuine worth in the cryptocurrency sector, beyond the excitement that usually accompanies new tech. This involved exploring three key realms where AI influences crypto: automated trading, data analysis, and user experience. Trading bots have been used extensively over the years, executing transactions automatically according to pre-determined parameters. Recently, AI-powered bots, particularly those using Large Language Models such as ChatGPT, have shown a proficiency for handling significant volumes of historical data, which can be vital for predicting future price trends. Yet, even with these progressive strides, AI-fuelled bots remain somewhat limited in developing complex trading plans. Crypto professional and YouTube influencer, Eric Crown, compared them to 'simplistic partners' who can only follow basic instructions but are incapable of critical thinking. In the domain of data analytics, AI instruments can sift through extensive amounts of public data littered across the blockchain, yielding valuable insights into the shifting patterns of the crypto landscape and flagging possible market risks. However, the fact that a lot of market data is retained off-chain by centralized exchanges hinders public access and restricts AI's ability to deliver spot-on assessments. For more detailed understanding of how AI positively influences the crypto world beyond superficial buzz, check out Cointelegraph's exhaustive report available on our YouTube channel and remember to subscribe!
Published At
9/27/2023 4:00:00 PM
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