Machine Learning and Bitcoin

[Smeet]

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" ?

[Nwada001]

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.

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.
 

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?

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.

[Hamza2424]

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 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.

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.

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.

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" ?

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.

[hatshepsut93]

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?

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.

[PX-Z]

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

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.

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.

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.

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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?

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

[logfiles]

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?

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.

[noorman0]

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

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?".

[panganib999]

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

[Wimex]

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.

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

[SilverCryptoBullet]

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

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.

[GreatArkansas]

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.

[blue Snow]

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.

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.

[Plaguedeath]

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?

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.

[jrrsparkles]

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?

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.

[ImLost]

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

[Kakmakr]

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.  

[dothebeats]

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/

[Husires]

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.

[gunhell16]

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.

[Latviand]

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.

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.