Written by Giovanni Pignistaff writerReviewed by Bryan O'Sheastaff editorHow AI is changing crypto: Hype vs. reality
MagazinePublishedSep 27, 2023
The latest Cointelegraph Report assesses the value AI is bringing to the crypto industry by separating the hype from real use cases.
The latest Cointelegraph Report seeks to find the real value artificial intelligence (AI) brings to the crypto industry beyond the hype surrounding the technology. To do so, Cointelegraph looked into three main areas where AI is impacting crypto: trading, data analytics and user experience.
For many years, trading bots have allowed users to execute trades in an automated way based on certain preset parameters.
With the recent development of large language models such as ChatGPT, AI-powered bots are capable of processing large amounts of historical data, which can be helpful in predicting future price movements.
However, despite the latest advancements, AI-powered bots are still not sophisticated enough to elaborate complex trading strategies.
“It’s basically like having a bunch of dumb partners who can adhere to very basic commands, but they can’t do any very complicated thinking themselves,” said Eric Crown, a professional crypto trader and YouTuber, sharing his personal experience with AI-powered bots.
Regarding data analytics, AI tools can process large amounts of public data scattered on the blockchain, providing valuable insights into the dynamics of the crypto ecosystem and assessing potential market risks.
However, a large amount of market data is kept off-chain by centralized exchanges and, therefore, is not publicly available. That limits the capability of AI to make accurate assessments.
To find out more about the real value at the intersection of AI in crypto beyond the hype, watch the full Report on Cointelegraph’s YouTube channel, and make sure to subscribe!
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Cointelegraph publishes long-form journalism, analysis and narrative reporting produced by Cointelegraph’s in-house editorial team with subject-matter expertise. All articles are edited and reviewed by Cointelegraph editors in line with our editorial standards. Some articles contain affiliate links, from which Cointelegraph may earn a commission. These relationships do not influence which products we review or our editorial conclusions. Content published in here does not constitute financial, legal or investment advice. Readers should conduct their own research and consult qualified professionals where appropriate. Cointelegraph maintains full editorial independence.
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