Can Artificial Intelligence Predict the Cryptocurrency Market?
Opinion moves the market.
Can Artificial Intelligence sense opinion?
And, can AI predict the market before it moves?
The latter two are the fundamental questions we are trying to answer with the Trademindx project!
Let’s discuss each of these points in a bit more detail.
What impacts the price of precious metals, currencies, cryptocurrencies, stocks? Some may think it’s the money invested, but this is not the case. It is driven by opinion! To be more precise, it is opinion and consensus.
There’s an excellent post on Reddit which goes into more depth on opinion in the crypto space with almost 20K up-votes and its a punchy write up that is well worth a read!
Since it is generally accepted, let’s just take it is as a baseline assumption for the purposes of discussion: opinion moves the market.
Now, here’s a crazy thought, imagine you could take the whole set of traders participating in particular market. They are all making independent decisions, making up their minds on buy/sell prices, placing orders and executing trades.
What if you could model that set of traders and deduce their overall consensus on opinion? What do you get? A super trader! That trader can clearly predict the market movements correctly. Now it’s just a case of building such a trader with AI technology.
Originally published at trademindx.com on March 27, 2018.