As bitcoin gains popularity, technology looks to enhance user experience.
In recent years, bitcoin has increased dramatically in popularity and adoption. Offering an enticing platform for novice investors to get into a lucrative trading scheme that could offer massive potential positives to the way the entire globe handles finance.
The volatility of market price, coupled with a relatively stable baseline means that there is almost always decent buy in opportunities, even for new investors. There are also a number of bitcoin exchanges that tailor their services to users who are new to the industry. Sites like Bitvavo aim to increase the ever-growing adoption by giving novice investors a leg up, furthering the health of the market at large. This type of constant adoption focused innovation is what propels the cryptocurrency forward. And now, artificial intelligence may be providing an even bigger helping hand.
Security in bitcoin is much like security systems elsewhere. It is looking for constant innovation to protect the network against the various hacks and breaches that could negatively affect its users. Despite the constant and ever vigilant security systems currently in place, bitcoin and many other cryptocurrencies are still the target of multiple hacks, scams, malware, and phishing. Meaning that protecting the network’s users from fraud will always be operative number one.
Most recently, a Florida teen was arrested and charged for swindling high profile people out of nearly $100,000 in bitcoin thanks to a clever scam and twitter hack. Making these types of breaches exceptionally difficult to recognize and respond to before damage is done, which is where AI based cyber security could come in handy. Design enabling them to near instantaneously recognize the attack as it’s happening, stop any transactions from taking place, and prevent future hacks of the same nature.
While some new traders flock to platforms like Bitvavo, as mentioned earlier- many still struggle to decide whether or not they even want to invest in bitcoin. Having difficulty getting a dial on the market, despite the best efforts of exchanges that focus on guiding them. Which leaves many investors looking toward brokerage firms in order to maximize their profits, without having to explore the inner workings of the network itself.
Many brokerage firms are employing AI, which could mean that these trading bots may soon be available to day traders outside of a brokerage. These bots could revolutionize the way bitcoin is traded at a laypersons level, using AI to better analyze markets and increase ROI (return of investment). These bots do all the things that a professional analyst would do and more. Taking bitsy of information from a wide number of metrics, including historical oscillators and social media.
Bitcoin mining has always suffered its critics. The process does take a large amount of electricity, mining equipment is expensive, and the payout isn’t what it used to be- but with AI, many of these issues could be resolved, especially once miners begin to band together. Which may be the way forward when considering the limitations of mining practices.
In order to validate transactions and maintain the integrity of the blockchain, user computers across the network (called “nodes”) must solve a number of incredibly complex cryptographic algorithms. Mining companies are now looking to create AI based GPUs (graphic processing units, commonly known as “graphics cards”). These specific GPUs allow miners to create an entire ecosystem where computing power can be shared along with energy consumption and block rewards. It may also help create a faster transaction sequence.
While AI often gives the non-tech savvy the willies, owing their hesitations to films like I, Robot or the classic Terminator franchise. While these movies are more than enough to make anyone reconsider the benefits of AI, they’re not exactly representative of reality. Because, unfortunately, the reality of AI doesn’t make for very good films. Instead it’s merely the current height of efficiency when it comes to data processing. Which in reality, is used far more often than you’d think.
When coupled with blockchain technology, AI can offer further efficiency and automation to a system that was designed to function hand-in-hand with these principles. Blockchain technology, cryptocurrency, and quite starkly bitcoin’s decentralized design, was built to remove the possibility of corruption and error that the human element often brings into the equation. So, introducing AI into bitcoin isn’t just an expected evolution, but a continuation of a promise that Satoshi Nakamoto made in 2008.