Whenever there is a huge jump in Bitcoin prices, investors skip a heartbeat. Bitcoin has often been touted to be the next global currency and many are putting their money for digitization to take over.
Are we depending on machines?
Artificial intelligence has changed a lot of aspects of human life and this is one discipline that market analysts believe will have a bigger influence in the years to come. When the machine is designed to think and process ideas autonomously, it could change the way we perceive the world altogether. But if we allow machines to manage our currencies; now that could be something unimaginable.
Machine Learning paving the way
AI is a fast-developing platform and it is still quite far away from realization with machines being able to make decisions but getting to that point would be machine learning. Where machines are designed to adapt and work based on data analytics, there have been some successful projects so far like self-driving cars. So, how is this even relevant to the cryptocurrency market? The answer lies in the pricing. When no physical infrastructure is involved, the prediction of Bitcoin prices remains unclear. Unlike share prices where you can carry out the fundamental analysis, it is almost impossible to do so with Bitcoin.
More high-tech methods needed
As such, it has become much more apparent that digital platforms need more sophisticated infrastructure and concepts if they are to become more significant in usage. One can draw the results from a recent case of the disappearance of 13-year old Kubiiki Pride. Drugged and beaten by a sex trafficker to ‘sell’ her services on digital ads.
This was difficult to track because of the millions of ads and the lack of digital trails. A team at the University of California, Berkeley developed a tool that uses machine learning to identify patterns that are common in ads. From there, the platform then uses the payment information (Bitcoin) which is publicly available to identify the predators.
This has opened up a whole new world of possibilities that has helped to find Pride. It now provides investigators a platform to intervene in potential traffickers as well as provide a digital evidence trail. The process is:
- First, AI is used to spot traffickers in online ads. It clusters writing styles and then used them for reference.
- Then, the payment method is identified. Since credit card companies no longer allow services on illegal online ad platforms, cryptocurrencies like Bitcoin become the only currency accepted. This is publicly logged on its ledger (blockchain). AI then searches the blockchain to identify who the owner is to that wallet in the ad.
- Then, based on the timestamp of the ad, law enforcers can use it as evidence in the event of prosecution.
This is just one of the potential of how AI can be integrated with cryptos and if such a trend continues, the future is surely exciting with what it can bring to the table.