Technology advancement is rapid and it's undeniable. But is this new technology always reliable? What are the limitations and why?
In todays article I will explain cursorily why it may not be the best idea to just let AI do everything for us when it comes to crypto.
The cryptocurrency market is highly volatile and unpredictable, making it difficult to forecast accurately. Even the most advanced machine learning algorithms and neural networks can struggle to keep up with the constantly changing trends and patterns in the market.
Also an important point is that despite great capabilities when comparing and using data, AI may often have a problem to differentiate between a great but undervalued, not popular project, and a overhyped, overleveraged steaming pile of garbage.
The crypto market is heavily influenced by external factors such as global economic events, regulations, and news.
Additionally, its prone to manipulation, including fake news and price manipulation schemes, which can affect AI predictions.
AI models are typically trained on historical data and may not be able to account for sudden market shifts caused by unforeseen events another drawback of AI in terms of predicting crypto prices is the lack of transparency in the market. Cryptocurrencies are decentralized and traded across many different exchanges what makes it difficult for AI to obtain accurate data for training.
Instead of letting AI do all the work, investors should rely on fundamental analysis, technical analysis, and market sentiment when making decisions.
Artificial Intelligence is still in its infancy and its capabilities are ginormous, but lets not forget they are not limitless.
My thoughts
AI can be a great tool for predicting market trends, but it should be used with caution when it comes to predicting crypto market prices. The volatile and unpredictable nature of the market make it a challenging task for even the most advanced AI models.
Artificial intelligence has revolutionized the way we analyze and predict various financial markets, including cryptocurrencies. However, when it comes to predicting the price movements of the crypto market, AI may not be a trustful tool.
None of information in this article should be considered a financial advice, it's my own analysis and facts I wanted to share with this wonderful community.
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addr1qxsktm5j0yusx00gg9735lrn7ada94n63dvy9g76nn5phms68c08evhlqngru7785nlh6qc20ll700v4pqtqktet3wkqwy07f5 - Cardano
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