Artificial Intelligence (AI) advancements have caught the attention of people worldwide in recent years. In particular, the news in 2023 and 2024 were overflowing with reports from tech companies which came out with various interesting and attractive developments in the AI area. AI seems to have merged with a lot of other industries by bringing innovative methods that would benefit both parties. That being said, AI appears to work well in pair with multiple other tech areas and has the potential to transform them.
One of the industries where the future of AI looks promising is the Bitcoin industry. The integration of AI in this industry could improve the cryptocurrency’s system in many ways by making significant impacts. Some of the improvements could be felt in the system’s trading and investment, the system’s security and fraud detection, the Bitcoin sports betting, and customer service. Let’s read more on how this integration could contribute to Bitcoin!
AI in Bitcoin’s system
Bitcoin is well known for being a decentralized so-called digital currency which was created to offer transparency and security for its users. The currency was first introduced through a whitepaper which was published in 2008 by Satoshi Nakamoto. The author called it a “peer-to-peer electronic cash system” and that’s where its strongest point lies.
Bitcoin allows transactions that go straight to the other party, without a mediator aka a bank institution, hence, it is a decentralized currency. The other best thing about Bitcoin is that it offers timestamps on transactions which cannot be manipulated and that offers the most transparency there could be for a currency transaction. But how could AI contribute to bettering all of these functionalities? Let’s see below.
- AI in trading and investment
One way of integrating AI in the Bitcoin system is by feeding it the necessary data to make predictive analysis. Based on the analysis, AI could provide rapports on the market trends and the price movements for a certain date range. By having this information ready, traders can take more precise decisions that would benefit them.
- AI in security and fraud detection
The integration of AI in Bitcoin could also provide enhancements in the overall security and detection of fraud. Based on the training that is given, AI can identify and flag any potential risk that appears in the system. AI can also analyze unusual behaviors in the system by monitoring the transactions, and thus prevent any potential threat.
- AI in Bitcoin sports betting
Bitcoin sports betting sites have gained so much popularity amongst users because they give them a sense of security when betting online. AI in Bitcoin sports betting sites could improve the overall experience of the players by providing predictions based on previous matches and the best thing is that this analysis could be given in real time. AI can also provide personalized betting suggestions for users based on their behavior and ensure fair play amongst all.
- AI in customer service
One of the most common uses of AI on websites is through chat bots. Almost every site has a chatbot that pops up in the main page of a website offering to help and guide. Those chat bots can also be integrated into the Bitcoin platforms, and they are definitely a great addition because they offer help and answer questions in seconds. This way the user has a better experience on the site and the response time is definitely reduced.
AI and Bitcoin – what is there in the future?
Considered by Forbes as a synergy for the future, the integration of AI in Bitcoin systems is expected to expand even more in the upcoming years. The aim of integrating AI in Bitcoin is to make this platform more sophisticated so that it can offer the best experience for its users. Since AI is advancing with the speed of a rocket, the applications that it could have in Bitcoin are endless. Some of the future prospects that appear in the horizon include:
- AI can help decentralize finance by improving and automating many of its functions. This way both the users and the developers who maintain the block chain system will have an easier way of using it.
- AI can help with the smart contracts offered by Bitcoin by enhancing their usefulness. AI can help with more complex transactions by simplifying them and offers more accuracy when it comes to keeping a record.
- AI can help with organizing the transactions in the system so that they are compliant with the rules and regulations of the platform. By giving reports on everything, the risk for a non-compliant transaction is severely lowered.
On a final note, integrating artificial intelligence into the Bitcoin system will definitely benefit the owners and the users of the system. As both industries continue to grow, we expect that this cooperation will also grow and bring even more efficient integration.
