Advantages And Disadvantages Of Artificial Intelligence Integration Into Cryptocurrency
Natural intelligence is displayed by animals and human beings. Another type of intelligence is called artificial intelligence, which is shown by machines or computers. Few people also relate artificial intelligence to machine intelligence. We can see various automatic machines performing intelligence tasks. The academic discipline of this intelligence was found in 1955, and now it has reached to the heights of success.
Artificial intelligence has supported us in many ways. Humans have created artificial intelligence and now they are gaining advantages by using it in different ways. This smart intelligence is not restricted to a limited sector. We can see the latest and unbelievable utilization of artificial intelligence integration into cryptocurrency.
A cryptocurrency is a different form of money that you cannot touch. This is digital money that we can invest or exchange in records. This digital money is trending in its unique style worldwide. A secured database and system are responsible to maintain further security aspects.
Artificial intelligence integration into cryptocurrency: Humans have integrated artificial intelligence into cryptocurrency to develop money. This integration has improved the ethical values of humans to an advanced level. Cryptocurrency is running on its peak so the analysis becomes an easy part. Here authorities felt a requirement of a tool to monitor and analyze the currency movement/growth.
The cryptocurrency auto trading algorithm for analyzing was so appealing as a startup. At the initial stage, some of the features were still awaited for addition. Artificial intelligence is working fabulously on different terms such as machine learning algorithms, natural language processing, analysis of sentiments, huge data management to guide on the right investments, and further attempts.
This artificial intelligence integration contains two different aspects. This is part of the reality that everything has two different sides. Sometimes a fair side attracts more than a darker one but, in some cases, the darker side spoils the goodness of a fair side. The debates and arguments have yet not concluded the stronger side of this AI integration into cryptocurrency.
Advantages of artificial intelligence integration into cryptocurrency:
- Advanced trading algorithm: Artificial intelligence has played a transformational role in trading cryptocurrency. Where humans analyze investment according to instincts, AI checks previous insights. By analyzing the stocks according to the user actions, it is possible to estimate an accurate data. According to some experiments, this data is way more accurate than human traders. It has executed this unrealistic and challenging task successfully.
- Security: The last couple of years were very special for this sector. The cryptocurrency and its multi-layered security make it hard for hackers to attack. The Blockchain network has proved its efficiency in this regard.
- Automated trading: Who thought trading can be automated too. Traders spend most of their waking time in analyzing and checking stocks on their monitors. But AI has made it possible to set the trading on an automation profile. Automated trading is most successful in HFT (High-Frequency Trading).
- Privacy: AI has served us with a potential solution to deal with various privacy issues. The biggest task in cryptocurrency exchange is to manage personal data. AI security assures safe data storage along with timely utilization and legal tracking.
- Efficiency: A very special thanks goes to artificial intelligence integration as it has improved efficiency. A good redemption has been noticed in the transaction, validation, and rest of the running process cost. Now the faster transactions have become possible via low energy consumption.
Disadvantages of artificial intelligence integration into cryptocurrency:
- Repair and maintenance cost: It is important to monitor the performance of artificial intelligence along with its reliability. This maintenance, programming, and development cost can affect the overall earnings.
- Facilitating criminal activities: There is no doubt that artificial intelligence has turned this almost impossible task into a possible action, but some weak zones are there. Hackers attacked several times on a secured cryptocurrency network. Very big losses have been recorded due to these criminal activities.
- Reducing human impact on the industry: Yes, it is one of the disadvantages of AI. Without a doubt, AI has its significance on the cryptocurrency. But it cannot be ignored that when AI will be implemented at a 100% level, it can kick out human influence. There are many traders and other professionals on whom the crypto trading and transaction relies. Employing AI for these facilities can have a major effect on cryptocurrency professionals.
The use of AI in any sector is worthy but in the case of cryptocurrency, we need to upgrade the system. Especially when this sector is rolling worldwide, it becomes the responsibility of the authorities to plan AI development from time to time. It will give strength to the entire process and protect it with a tough shield of security. On the other hand, it disadvantages should not be avoided at all cost. The integration should be amended in a way that the advantages outnumber the disadvantages.