Impacts of artificial intelligence on crypto industry

Amanda Jerelyn

Business Manager at Crowd Writer

 


In the past few years, the crypto industry is attracting much more attention of the individuals and organizations due to their staggering performance and the speedy growth. Cryptocurrency is no doubt fascinating to many people due to its ability to generate quick wealth by using prompt price appreciation even though there are higher risks and instability associated with bitcoin. Every industry and field has been revolutionized by artificial intelligence, including the crypto industry. AI is having a significant influence on the crypto and finance world.

Statistical data reveals that 55% of the financial function in businesses will be impacted by Artificial intelligence. Just like AI is essential for today’s technology. Similarly, blockchain is a significant part of the crypto industry. Many companies have started to invest in cryptocurrency, but it has certain limitations in trading and investments. Artificial intelligence is playing a significant role in bringing efficiency in financial services and ventures.

AI’s Revolution on the Crypto Currency Industry

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AI’s Revolution on the Crypto Currency Industry. Source shutterstock.com

The Crypto industry is one of the most essential trades of this era. It is a digital exchange based on software ensuing a regionalized directive method. There is no third party influence involved in this industry. Artificial intelligence offers efficient technological solutions by bringing a wide variety of benefits to companies, trades, investments, organizations, etc. This technology is replacing the human workforce; similarly, it is reducing human involvement. AI helps in making reasonable decisions avoiding bad decisions in trade and investments. AI is quite beneficial in High frequency and automated trading. AI has more significant potential to transform the crypto industry in various ways.

Better Investment Trading

AI is an integral factor in crypto investments. Although it has higher risk and is highly volatile still, many investors are putting their money into it. The common dilemma is selling all the bitcoins when the rates are suddenly dropped. Even bigger market traders are overcome by their emotions and encounter huge losses. Steering cryptocurrency may require plenty of skills and reasoned decision making to help the companies or individuals to understand this industry. AI is playing a vital role in addressing these concerns. The innovative technologies such as automated trading have been considered to reduce manual thinking work and guesswork, reducing the risk factor. The best example to understand is binary decision making with in-built if-then functions. When the machines are preprogrammed and make decisions without considering emotions, it leads to better investment decisions, controls the risks involved in it, and adequately structures the exit and entry set for trade and investments based on cryptocurrency.

Adequate Security

AI has been rapidly progressing and brings advancements. Source: shutterstock.com

Hacking the blockchain networks is quite difficult but, few of its layers, including Bitfinex, are not quite secure. Security is a crucial part of the crypto industry. That’s where the need is AI arrives. AI has been rapidly progressing and brings advancements. It is best to fit for providing adequate security to the blockchain networks. Artificial intelligence ensures the protected deployment of various applications, particularly those networks that have fixed structures. This will immensely help in making way for the crypto coins in the crypto industry.

Privacy and Efficiency

A survey conducted in the year 2019 shows that more than 5 million people are interested in investing in the crypto industry as compared to 2018. The responses that were gathered revealed that 83% of people had observed the enthralling use of AI in the crypto industry, while 53% of the responses explain the need for efficient transactions. AI will enhance the transaction system’s performance by minimizing the total costs and considering the growth factors.

The transactions will be made at a faster rate with much lower energy utilization and implementing smart marketing efficient systems. Like every other technology, privacy is also a vital issue in the crypto industry and AI not only addresses the security concerns but also makes the customer data private and minimizes the risk of involvement.

Abundance of Data

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AI is beneficial in organizing qualitative and quantitative data. Source: shutterstock.com

AI is beneficial in organizing and gaining a competitive edge on both qualitative and quantitative data. Financial organizations are creating numerous amounts of data on a day-on-a-day basis. This technology helps the companies effectively scrutinize the large volume of financial information to gather valuable insights. AI in the crypto industry makes the buy and sell decisions more manageable due to high-frequency trading as the data abounds easily deciphered as compared to the human brain.

Artificial intelligence is proving its worth in various industries. It brings considerable advancements in trading, investments, and transactions, making it faster and more efficient. It is integrated into this industry to make up for the limitations of the crypto market, transforming it to a greater extent.


Amanda Jerelyn is a business graduate from a well know UK university. She is currently working as a Business Manager for “write my essay” team at Crowd Writer. She plans on creating value in the business community through her ideas and strategies and doing in-depth research in AI and blockchain technology.


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