How Accurate is Artificial Intelligence in Predicting Cryptocurrency Prices?

Although AI could be considerably beneficial for crypto traders and investors, both industries need more time to refine their issues. The cryptocurrency sector still struggles to find a place within the institutional space due to the lack of regulation, especially with the sloppy start of the SEC (Securities and Exchange Commission) and other coins like XRP. 

While the legal battle between the two parties ended with the victory of Ripple, the organization behind one of the most efficient crypto, challenges continue. Governments might find it difficult to regulate cryptocurrencies due to their volatility and lack of protection toward users, but inaction will not contribute to a healthy, growing ecosystem. 

On the other hand, AI struggles to escape its bias. We already know crypto investors are prone to different biases due to previous beliefs, but AI is capable of it, too, based on the information it uses to create reports. Therefore, experts must feed AI algorithms with high-quality data, which takes longer to find among the vast amounts of information online. 

Therefore, institutions must manage regulation by addressing the following: 

• Using blockchain as a trust enabler in AI as it can trace data provenance and maintain immutable records;

• Spreading awareness with proactive compliance, especially for high-risk applications; 

• Solving ethical imperatives like AI misuse, surveillance, or rights violations through a global framework; 

• Fostering collaboration between AI models and blockchains through tokenized intellectual property management;