Artificial intelligence is coming to cryptocurrency and doing far more than recommending trades based on data analysis. It is set to transform everything from ICOs, the way exchanges work and how cryptos are traded, just like it did traditional trading. Let’s look at how AI is revolutionizing cryptocurrency and cryptocurrency trading. We’ll also make a few predictions as to how AI will change the user experience.
Automated Trading Solutions
We’re already seeing AI being used to give people financial advice in the form of robo-advisers giving people general advice for saving for goals like retirement or kids’ college. Institutional investors adopted automated trading solutions, and this has allowed them to move billions of shares a day based on minor swings in the market while profiting from all but the totally unexpected.
Artificial intelligence cultivated through machine learning, studying the massive amounts of data being collected already, will soon lead to automated trading solutions for the cryptocurrency. And eventually, you could receive advice from a robo-adviser on when to sell a specific cryptocurrency because of changes in the market or receive recommendations of when to convert it to another currency or cash based on your long-term goals.
AI related ICOs
AI is set to change the world of ICOs as well and introduce AI oriented tokens and coins in the near future. The Magnus Collective is working toward becoming the first decentralized network of not just traders and IT hardware but sensors, robotics and artificial intelligence to create a global market for processing power and information.
For example, it will let you rent out extra capacity on a server for cryptocurrency or buy time with a robot, 3D printer or human subject matter expert as required. Consider it a combination of rentable hardware, software, IT infrastructure, AI and people.
Magnus Collective is considered the first artificial intelligence ICO, and some analysts think the fact that it connects people and services along with AI advisers will create a full-fledged ecosystem that will amplify its growth. The fact it is already recognized by industry associations like the IEEE and Boston Consulting Group means it is already well on its way to becoming an established player.
AI and the Acceptance of Cryptocurrency
One of the reasons why institutional investors have been slow to accept cryptocurrencies is the perceived risk. As hedge funds are able to secure AI’s to simulate trading and test various scenarios, they’ll become more likely to accept cryptocurrencies as an investment instead of a supposed bubble.
They can also run through test cases to try to minimize the risk, something many institutions are required to do to invest funds from someone’s requirement or money held in a pension. With the ability to run a variety of simulations regarding the impact of regulatory changes or trading strategies, the more likely they are to see that they can profit from it in a variety of scenarios and thus be willing to invest in it.
Artificial intelligence is going to start connecting more people to the cryptocurrency market while removing the guesswork. It is also going to change the very nature of coins to be introduced in the future. And the technologies to achieve all of this are already under development or coming to market soon.