Market fall, which occurred in 2020 due to the events surrounding coronavirus, has had a devastating effect on the world. Prices crashed, Bitcoin fell dramatically. AI trading was not so effective when it came to changes in the world. And it was not unexpected - no one would have thought that Covid-19 would take such scope in the world; thus automated trading systems also failed.
AI and crypto
In the modern financial world, a distorted understanding of artificial intelligence (AI). AI is a program that can learn on its own. It can analyze data, calculate errors, and choose the most rational actions, more can be learned by reading product reviews such as this Bitcoin Billionaire review here. But many crypto companies are trying to sell the usually programmed algorithm, like AI. The reason is money. The mention of AI in the development of a company's service multiplies its value by 5-10 times. All this devalues the value of artificial intelligence.
AI is useful for analyzing information and provide solutions to the problems, which humans encounter in trading. There are three ways to analyze information:
First, when hired analysts monitor information from the crypto markets and calculate hypotheses for traders. Further, the trader independently decides whether to believe the information, what to buy, and whatnot.
The second way, when a trader uses a trading robot (algorithm), which automatically decides what to buy and when to sell based on embedded algorithms. But if the market situation is non-standard, for example, panic begins around the world through the possibility of a new virus pandemic or conflicts, price wars between countries over the oil market - the robot is not able to make the right decision and most likely will merge the entire deposit of the trader. And we saw that in 2020.
And there is a third-generation - AI-based robots. In non-standard situations, which s can recognize the threat in time, close positions and take profits.
Third-level technology is available to only a few organizations in the world. But only a slew of companies uses a trading robot from a team of exchange analysts and programmers from the USA with 10 years of experience in developing solutions in the field of trading and banking services.
The more information the robot analyzes, the more profitability it provides. All analytics, statistics and reporting, company customers can receive in real-time using a personal account.
In an interview, Microsoft founder Bill Gates said the following about artificial intelligence:
"Modern work in the field of artificial intelligence is at an outstanding level. This area will become a phenomenon, and I would like to devote her career to my whole life."
Based on PwC data, investing in AI by 2030 will yield a 14% increase in global GDP (by $ 15.7 trillion). And for the study of the association, which brings together experts in the field of finance, accounting, and auditing - more than 59% of financiers are ready to entrust part of the work processes to artificial intelligence.
Problems regarding AI
AI is indeed an amazing thing when it comes to trading crypto, but 2020 showed that even automated robots are not able to calculate everything in advance. Unexpected things like coronavirus might happen all the time. We have not reached that point in technology when artificial intelligence will manage to resolve every issue effectively. During that harsh time, surrounding coronavirus AI started to make dubious trades in crypto, which resulted in people losing their money. So the human mind is still crucial for making ultimate decisions.