Topic: Machine Learning and Bitcoin (Read 240 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.  

Tbh I've thought this thing would happen but recently a family member left behind his bitcoin meta mask wallet for me in his will and holy shit his dad worked for a company that paid in BTC when it was 3 dollars a coin very early on his dad didn't know what to do with it so his son kept it in a wallet when he passed I was in the will to take care of all personal belongings I found the computer and there it was 4 morn later I found the wallet and it says 217 Million as of today I don't know how to sell it or get real cash for it I'm so lost

Machine learning and Artificial intelligence has real potential in the future of the industrial market over the crypto market.

AI can't predict future outcomes, it can only can draw a result based on the input data we have so it's like a statistical answer but the accuracy is unpredictable cause the nature of crypto prices is always unpredictable which is beyond the patterns for the records.

Bitcoin itself isn't anonymous, its pseudo-anonymous, and all the data are stored in a public ledger which can be seen by anyone in the world so it is not going to break the anonymity but as mentioned above there are better ways there to trace the fraudulent transaction.

Nah machine learning can't be used to track down fraudulent activities, see this thread Blockchain Analytics is More of an Art Than Science.

Since it fails in both terms of predictive analytics and blockchain analytics, what can machine learning contribute to Bitcoin? it's related to make huge unstructured or raw data become structured data e.g. tracking all Bitcoin address that has a balance etc.

Yes, it could be, I tested how that machine made the mistake when I tried to ask questions. In this case, we do not have to believe 100% sure when The AI answers it, because that machine is still human-made where all the program was created and takes the resource from the machine search library. With my suggestion, Better you do it manually, especially for bitcoin, because it involves with your money, if you make a wrong step, it could be lost your investment.

What I can only see is that the advancement of Machine Learning / AI is merely trading and adoption.

For example in trading, we can expect a lot of automation, like better decision-making in every trade.
On the adoption side, AI/ML can help us to create some interfaces or systems about using Bitcoin for users that can easily use it or user friendly.

It helps altcoins more than Bitcoin because developers can use ML and AI together with some smart contract tools to create their new projects easily.

Bitcoin need organic growth for its technical development and adoption. ML and AI are not helpful for Bitcoin developers and communities but it is not harmful for Bitcoin.

AI will have its advances and certain aspects that characterize it will be strengthened, but we are still far from seeing a joint collaboration with technologies such as bitcoin. It would be better to redirect this type of artificial intelligence towards a field of security rather than prediction, since the The truth is that these are based in large part on saving data that they supply or that they carry as they learn about the environment for which they were created, that is why it probably failed when it was tried to be used to predict prices, because these movements are totally involuntary, and they do not always have a constant sequence, causing the response of this technology to be incorrect by not being able to deduce the next movement... Just imagine, even the most experienced person in this area sometimes fails... for the AI ​​it would be printing wrong answers constantly. For this reason, I think it would be better, if you want to incorporate AI into the world of cryptocurrencies, take it to the security area of ​​the platforms where we decide to store our assets so that it acts as an impediment to hacking...I think it could be an alternative

Biggest facet it could contribute to would be security. Imagine getting a security system that learns from patterns and behaviors made by malicious actors to flag you if someone comes around. That would be one of the most awesome things you can expect to do with AI and machine learning on crypto. Another would be the integration of AI and machine learning in trading, investment, and financial advisements. Having an expert behind your back is an indispensable tool especially for stuff like bitcoin and crypto in general. Making these experts bias-free and ever-learning is the cherry on top that makes every investor confident about their purchase and sale decisions since after all, it came from AI and machines that are tailor-fitted to do these stuff for breakfast

AI and bitcoin are separate entities neither for nor against, so you have to look at it from another perspective. With the role of a business, both can be adopted simultaneously. AI is applied to help create products or services efficiently, while bitcoin is a type of payment.

From this point on, the influence of the presence of these two technologies is the user experience itself. So the right question is "do ML, AI and Bitcoin help or hinder users in business?".

Why not track down fraudulent services and possible control illegal activities that have transacted through fiat currencies such as the dollar for so many decades to this date?

Why do some people always have to think about illegal activities when it comes to only Bitcoin, yet we have so many criminal, corrupt and money laundering activities being carried out with fiat currencies at a very wide scale to an extent that what happens with cryptocurrencies is negligible?

It all looks a hypocritical approach to me.

Possible, yes. No kind of technology will hinder the growth of bitcoin technology as it will adopt all kind of secured way to make the technology secured as for the cryptography. Developers will make softfork or hardfork when a bug and insecurities is detected. It's the same on the banking sectors.

Stocks and any kind of trading prices are initiate by too many independent individual, no one will know how it will go in a certain time and date especially for specific price.

Chainsnalysis will sure improve time after time and yes, its possible to happen.

I doubt that machine learning would would work better than traditional methods. Like, you might be able to find a darknet service wallet by noticing that a large percentage of incoming and outgoing transactions are passing through mixers. You don't need AI to do this. Also AI might fail at the task on un-mixing, because it's too complicated and too difficult to train the model when there's not a lot of good data.

It's possible that AI will eventually be used in some aspects of Bitcoin, but don't expect some technological singularity from the combination of two - AI is just a tool for working with data. Chances are the application of AI in Bitcoin will be something very boring for most users.

In terms of growth as in capitalism or do you mean by the advancement tin the network, for capitalism I think the would be NO, as AI cant bring fiat and have any sort of way to bring more capital to Bitcoin. In term of network modification in future there might be the possibilities but I thnk it will start a new debate as well.


Descriptive analysis or predictive Ai can be helpful if you have better control of it because the Ai support we currently own not efficient enough and its not still capable to provide any sort of decision making power in most of cases.



I can say your motto is good as tracking down the fraudulent transaction and things like that but they can have other consequences as well so it is also a log debating topic.

I assume that too, as what they use in analysing the stock market is the data that has been made readily available. The same way the humans who built it can't be accurate with exact stock and crypto market prices, the same thing will be applicable with the AI prediction.
 


I think we already have a similar thing at work currently on most of the crypto currency exchanges, which they use to detect some blacklisted addresses on their exchange. That is, any deposit that came directly from a blacklisted address or was somehow connected to a blacklisted address that was recently flagged for scam is usually detected by most exchanges, and the funds are held for further investigation.

The only difference I think the AI might make in respect to this is to be a little faster in linking an address to any form of scam history they might have, which ordinarily any human won't be fast at doing. So to answer your questions: No, I don't think the AI will be much of a help in tracking or tackling fraudulent activity going on right now in the crypto space.

I have been recently taking some courses on the area of machine learning and artificial neural networks. This sparked some thoughts in my head about how this new advancing field of machine learning / AI relates to the cryptocurrency field. It's no secret that both these domains have been making waves individually, but what happens when they come together?

Does the advancement of ML and AI help with the growth of Bitcoin as a currency, or does it hinder the growth?

In terms of predictive analytics, I'm sure AI has been tried and tested to predict stock prices & etc, and failed. I'm assuming it would be the same with Bitcoin.

In terms of anonymity within the Bitcoin blockchain, Machine learning can be used to track down transactions for fraudulent services and possibly help control the illegal activities transacted through bitcoin?

What are your thoughts on the growth of these "technologies" ?