Topic: Machine Learning and Bitcoin (Read 236 times)

I think ML will badly affect crytoindustry, since the main objective of AI and ML is total control, while the main objective of cryptoindustry is to bring some financial freedom. So the only things AI can create in cryptoworld is centralisation and strong financial control. It doesn't matter who starts AI projects in cryptoworld, they will anyway end up in wrong hands. The fiat financial system (predominantly dollar-backed: powerful tycoons, worlds richest bankers, their servants from regulating offices) faces threat from cryptoindustry, so AI is their powerful weapon.

At the moment, I think that the possibilities of machine learning and AI are overestimated, but the development of technology continues, which makes it quite possible that in the future, machine learning and artificial intelligence will make a real splash, unlike the current hype at the present time.

I think that machine learning can't influence the growth of bitcoin in any way, because predicting the ups and downs of the price of btc can't be predicted even with the help of artificial intelligence. Too many factors affect stock quotes not only BTC but also for other cryptocurrencies or even shares in the traditional securities market. It is necessary to cover and take into account a huge amount of data, which is practically impossible to do even with big computing power and machine learning. For therefore, artificial intelligence failed in its attempt to catch btc by the tail. Perhaps someone by chance managed to apply it successfully, but I'm sure it's nothing more than an accident.

As for the analysis of blockchain using artificial intelligence, I'm sure this has been used for a long time. But I'm not sure if this is used to prevent and combat fraud, and not to downplay confidentiality and privacy by certain organizations.

Machine learning and artificial intelligence are technologies that are just as revolutionary as Bitcoin, but depending on how you look at it, machine learning and artificial intelligence can either increase the adoption of Bitcoin or hinder its adoption. If the government uses ML and AI to control the circulation of Bitcoin in their country, of course that will be a problem for Bitcoin. However, if exchanges use ML and AI for Bitcoin transactions, perhaps it will be very helpful in tracing various transactions to suspicious wallets. So depending on the usage, machine learning and artificial intelligence can help or hinder Bitcoin adoption.

I think CipherTrace is already doing that exact tracking service or something like that, being unclear as to how advanced they are in using that is a good thing because that's how things should be, so the malicious entities outside the company will never know the extent of your power to crush them. False positives definitely is worrying but I think it's negligible in the crypto space if we know how to deal with it and I'm sure that AI engineers and programmers already knows what to do, the only time that you should worry about false positives is if it involves your health like in cancer check ups.

I think machine learning is part of the AI according the google that "As mentioned, Machine Learning is a branch of AI, pushing Data Science into the next automation level. " - https://braincube.com/resource/manufacturing-ai-vs-machine-learning-vs-data-science

So it's like a branch and in case Bitcoin they might can predict the price of bitcoin according to some technical analysis in my opinion, so they will learn more when their prediction is failed but keep in mind that the market is something that can predict 100% accurate now matter how strong AI is because there is so much factor to move the market. Unless the AI has Fundamental, Technical and whale analysis at the same time.

But with the wave-like today maybe the AI prediction is getting better maybe somewhat around 75%

How do you propose that to happen?
Having AI predict what could be a fraudulent transaction and what isn’t simply by following the addresses?

Well, it’s good to know that, there are mixers today and having these links eliminated or out of existence is as easy as few minutes or days for those who wish or want more privacy.

While you think that possible with machine learning and crypto integration, it’s been tested in other aspects such as trading and still is but, isn’t yielding much better results. Machines can help you better to keep up tab with the trades as they could aid you as notifiers of certain points to trading but, not overly an accurate predictor of what could be.

This one is a good read about Machine learning, AI and Bitcoin/Crytpocurrency :

https://www.frontiersin.org/research-topics/37594/forecasting-cryptocurrency-markets-using-artificial-intelligence-and-machine-learning-tools
https://www.linkedin.com/pulse/unleashing-power-connection-between-cryptocurrency-ai-amit-chandra
https://www.techopedia.com/artificial-intelligence-ai-in-crypto-trading

It is a long read but in summary, it is more on data analysis integrated on blockchain technology. 

Like how AI can innovate trading bots,
Forecasting the Bitcoin market with the use of AI and ML
Finding and detecting anomalies in the system and many more.

The both can enhance the development of cryptocurrency but in whichever way, they still need human intelligent to carry out the activities.  The both terms are different but they function almost the same thing and using them different is the best because when you use them they give different answers. And one thing we all know is, human beings like to use stress free things and the two domains reduce the stress of human beings, it became helpful tools to humanity and also became an hindrance to manual research. They are all bots so the disadvantages are always there so the users should know that they cannot give the correct answer to everything unless the particular answer is inline with the question. I don't think ML and AI can be used to track any fraudulent movement in bitcoin transaction since they are operating by bot so they might give the wrong output.

Your desire to learn new technologies by applying them to cryptocurrencies is very commendable, but I'm afraid that let go and And shows impressive results in Art and designing IT systems and writing code - but exchanges are too complex to predict their further course of the price of cryptocurrencies. The fact is that the price is the totality of all concluded transactions for sale and purchase.
And there are many factors at play here - from news, to the entry of large players into the market and at low volumes, mass purchases or panic sales from the masses of ordinary players.

Therefore, even for AI, this crypto world is unpredictable.

They are not tightly related.


Simply a scam attempt, or at the very least a shitcoin. AI is able to thrive and innovate without any connection from cryptocurrency whatsoever. There is no significant link between both of these contexts. The most pressing problem of AI is not specifically tied to cryptocurrency or Bitcoin. I think it is crazy that people ignorantly connect both of these things merely to garner a hype or self-interest motive.

It also applies to Bitcoin, the most pressing problem or any innovation that current bitcoin trying to solve has no direct involvement with machine learning.

The effect of these technologies on the growth of Bitcoin is a debated topic.  While predictive analytics using AI can be helpful, it's important to consider that financial markets, including Bitcoin, are affected by many complex and unpredictable factors.  Perhaps it could be applied in another way but the price analysis, although it could get very close, there would come a time when it would not be able to predict it for an incalculable event.

Dear Op AI and ML are not something new; instead, these technologies were used by big investors and institutions a long time ago. But just to clear things out, none of them must have been totally dependent on AI predictions; instead, they used it to enhance their results or options accuracy. As you asked, does it hinder the growth? No, it will not hinder the growth; instead, as you can see besides BTC, How AI has impacted our daily lives: the work of two hours is happening in 30 minutes, and people are saving their time and using that time for other productive work. Overall, the production level increased by 3x just because of these AI and ML algorithms public availability (GPT).

And yeah, ML can be used to detect anomalies in the system; that's one of its main features. Either you are using deep learning or machine learning techniques; in both cases, you can find anomalies, but you better know that the detection of anomalies also depends on past data. Which we use to find different probabilities and also choose the one probability with more accuracy and occurence percentrage.

The point being made here is that many platforms are already using these techniques to find anomalies and prevent scams and fraudulent activities. But there is more room to grow because these technologies are not as accurate as AI, ML, and DL.

I'm pretty sure some services already do this, although it is unclear to what degree they use advanced machine learning or whatever it is called. It basically allows them to process it faster, which can be good for those companies, but the risk of false positives is probably never gonna go away. It would be terrible if there is no appeal process in place, which is what usually lacking in services like exchange. In short, the customer is probably not gonna notice any change unless the service they use is dedicated for them (like better newsfeed, etc).

Machine Learning in Python for Cryptocurrency Trading
Machine Learning in the world of blockchain and cryptocurrency.

Trading is a most common application for Machine Learning in world of Bitcoin (and cryptocurrency) but I don't buy trading bots and take risk with my capital. Instead of trading manually or trading with bots, AIs, I am going to invest and hold bitcoin.

(SSS) - A Sane and Simple bitcoin Savings plan which is an interesting investment plan to study.

Its one thing to say machine learning and AI have made strides in their respective fields; its another to blindly assume their efficacy, or lack thereof, in the realm of financial predictions. Just because some AI models failed in predicting stock prices doesnt instantly render them useless for cryptocurrency. Remember, the data and variables involved are vastly different. You cant just toss them in the same bucket.

Now, concerning the Bitcoin blockchain, you're onto something with machine learning's potential to track fraudulent services. However, asserting that ML will "control" illegal activities is a far stretch. The very essence of Bitcoin is decentralization; its not about control.

Lastly, both these "technologies", as you put it, have transformative potential. But making broad assumptions based on limited knowledge can be dangerous

Widen your imagination, AI can learn through patterns you know, which means that you can teach it to detect fraudulent or criminal activities by studying the transaction patterns of each wallets or something like that. Trading is a big thing for AI and people are still needlessly debating whether it's better to use AI when trading or not because the right answer will always be the former so I get why you think that's the end game for AI in bitcoin.

Most people know that the concepts of AI and Bitcoin are not the same. Although the treatment of fraudulent people is a good method using machine learning, what kind of algorithm is suitable to use here? Do you have any thoughts, OP? Because it seems that what you are talking about is easy to say but difficult to do in the real world.

Also, the often-known method of fraudulent people is making single transactions at multiple addresses; that's always the scenario that exploitative people do in this industry that we belong to.

Either you do not understand machine learning and artificial neural networks, or you do not understand Bitcoin and how it works, as they are both different and the intersections between them are like any intersections in science.

Economic analysis and forecasting may not mean that the price will rise. If you know the direction of the price in the future, then someone must lose in exchange for you winning. If we all want to win, this is a bubble that will end with all of us losing. Therefore, understanding it has evolved. Forecasting methods have evolved. The fluctuation in the price will continue to exist until we reach a market value that makes 1% change requires hundreds of billions.

Not gonna lie, your post made me really curious despite not being too into and curious about Artificial intelligence (AI), but your post really got my attention so I did some research and maybe this will help answer your question in a way. First, the connection between AI and blockchain is mainly about improving technologies to detect suspicious activities and improve security, which makes a lot of sense. Moreover, this connection will also implement or develop tools for market forecasting.

So, essentially, the connection will be more on improving blockchain security which is very important for us.

Here's the source I found, in case you want to read it yourself and find a better explanation: https://b2broker.com/news/how-ai-will-affect-cryptocurrency-market/

I think this whole Artificial Intelligence (AI) thing are over hyped and just the new buzz word in the IT industry. People tried to use it to predict financial trading prices and it fails all the time. (Garbage In Garbage Out) ....now scammers are using this to sell AI bots to innocent victims.  

The same thing happened with "Blockchain" technology.... where businesses felt left out, if they did not have a cutting edge "Blockchain" based project in development.  

This will blow over soon... and AI will mostly be used to create funny animated characters and profile pictures for social media accounts.