Top 3 Reasons Artificial Intelligence could benefit the Crypto Space

Artificial Intelligence has been at the center of several discussions in the crypto space recently. In fact, the AI hype transcends crypto. AI has also been a source of discussion among marketers and consumer privacy experts.

The reason for the buzz is largely stirred by OpenAI’s pioneering software — ChatGPT. The software, launched in November 2022, has swiftly become a major rival for Google search. ChatGPT typically simplifies content creation for users. It has been hailed by many for its concise and tailored response to queries. A feat that is considered extraordinary, and with the potential to change the way search engines work forever.

Amid this frenzy, crypto AI tokens have seen their prices pump. Tokens such as FET, AGIX, and GRT, have been riding the AI wave. Yet, as an industry that largely thrives on hype and frenzy, the crypto industry can benefit more from AI than a mere token pump.

In this piece, I explain the top three ways that AI could be of benefit to the crypto space.

Microsoft and Bard

It did not take long for ChatGPT to catch the attention of Microsoft and Google. Although, the approach of both corporations differs, nonetheless, it shows the existential threat that ChatGPT poses to both tech giants.

Microsoft has since moved to make a $10 billion investment outlay to OpenAI. As part of the deal, Microsoft’s cloud infrastructure — Azure — will now have ChatGPT as part of the enterprise benefits available to users. This is without stating that Microsoft had earlier integrated the image AI tool, Dall.E, into Azure.

Google, on the other hand, has responded to ChatGPT by introducing its own chat AI tool called Bard. This tool is currently in its test stage and should soon be available as part of the Google search tool. In a blog post made by Google’s CEO, Sundar Pichai, on February 6, Bard “draws on information from the web to provide fresh, high-quality responses.” In other words, Bard is Google’s version of ChatGPT.

AI and Crypto Trading

Crypto traders are one of the most obvious sets that will benefit from AI. In the real sense, AI is not a new phenomenon in this space. There are quite a number of actors introducing machine learning algorithms and bots to help crypto traders automate trades. Some well-known tools in this category are Bitsgap and Pionex.

Notwithstanding, artificial intelligence could offer an in-depth experience for traders. It will help them better study trends and signals, analyze patterns, and offer insight into the best trading moves for maximum profit. What else does a trader want other than deriving maximum profit at each market entry and exit?

AI and the Investor Community

There are two categories of investors that will benefit when AI truly takes off in the crypto space. The first is early-stage investors, and the second is token hodlers.

The ongoing crypto winter is well publicized and requires no further explanation even to a newbie. The bulk of 2022 was characterized by epic failures and notable collapses. By the end of the year, notable industry players such as 3AC, Celsius, BlockFi, and FTX, have all declared bankruptcy. Going down with billions of user funds in the process.

This kind of atmosphere has definitely led to a drop in overall crypto market investment. A lot of crypto startup projects have folded up, while several others continually strive to stay afloat. At the root of it all is the unwillingness of investors to issue funds to projects in a dark investment climate.

Artificial intelligence could play an important role in alleviating investor fear in the near future. AI could be used by investors to gather information about trends, insights, and sentiments. AI has the capacity to sift through information on the internet and present investment firms with the most accurate information in the twinkle of an eye.

AI could also be vital for fraud detection. Investors can make their decision by using AI to detect fraudulent patterns based on previous information that the system has been trained with. Thus, it could limit bad investments and reduce investment fraud.

Token investors can also benefit from AI. Since this class of investors mainly banks on the potential of token prices to pump, a grounded AI market means that AI project tokens will continue to grow. This then equates to an easy profit on investment for token hodlers.

AI and the Entire Crypto Industry

One thing has become quite obvious in the crypto space — the entire crypto market thrives on hype, trends, and speculation. In time past, we have seen periods when blockchain, NFT, and metaverse projects dominated the market. AI seems to be the next on this growing list. Regardless, the positivism around artificial intelligence goes beyond mere speculations.

The crypto space is characterized by constant volatility. This has even taken a new turn recently with the ongoing clampdown by national governments and especially the United States SEC.

AI could help establish a sense of stability. As earlier stated, it could prove useful for early fraud detection. This alone has the capacity to change some narratives about cryptocurrency being a wild west adventure. While crypto is built on anonymity, AI could help track trends and provide early warning signs of potential scams and bad investments.

A reduced investment risk could further change the stance of the government from imposing stringent measures that could further stifle cryptocurrency adoption.

Toward the next Bull Run

The crypto market might be embroiled in a battle for survival at the moment. However, past occurrence indicates that the bear market is the perfect atmosphere to lay the foundation for the next bull cycle. In other words, the next set of 1000x projects are rapidly building and scaling in the current climate.

Innovative NFT use cases, metaverse adoption, cross-chain interoperability infrastructures, and now, artificial intelligence. While all of these seem inconsistent at present, they could all be the foundation for the next massive crypto bull cycle. In the meantime, we can all continue our discussions and debate on the next big trend in crypto AI.

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