Predicting the next bitcoin price moves is a maddening task — and attempting to profit from them often has the opposite effect. The developers of an app called Bitcoin Bubble Burst wants to take your human weaknesses out of decisions, and replace them with A.I. – but would it work?
The tool made its debut at this year’s Disrupt Berlin hackathon in late November. Users could (in theory) tend to other needs (like sleeping, eating, running errands and going to work) without having to think about bitcoin’s price changes all day.
The app allegedly does this for you by keeping track of major trends, news and changes that might hinder or benefit the currency’s present value.
“Be ready for the blockchain apocalypse,” said app creators Claudio Weck, Saad El Hajjaji and Karthick Perum.
In an interview with TechCrunch, the developers explained that the app works by monitoring recent news sources and social media for stories regarding bitcoin. It then uses the information it’s gathered to make neutral predictions about what could happen next.
“Sometimes, huge events like the ban of bitcoin in China are mentioned in social media and the news before it affects the value,” the team said.
The app is still in development, so no-one’s had the chance to test its effectiveness on a grand scale yet. Anyone who’s interested can test it by subscribing to Bitcoin Bubble Burst’s email list, and get all the potential price-affecting news.
The app is not designed to make choices for its users, but rather to inform them about what’s going on and let them decide whether now is the time to buy or sell.
In the end, it’s always in the person’s hands, which makes the app and the technology surrounding it a bit risky to say the least, but the owners are confident in what they’ve created.
They claimed their tool has been right every time during its weeks in development when predicting how, where and when the price will move.
For the most part, bitcoin apps are nothing new, and as cryptocurrency continues to grow and garner more mainstream followers, we’re likely to see more down the line.
For traders, Neurobot claims its A.I.-based technical analyst can predict price trends in most major cryptocurrencies (we advise observing it for a period before using it for actual trading).
For simply using digital currencies, some of the most popular apps today include Airbitz, whose claim to fame is “anonymity” and decentralization (not even the company itself can see who sends or receives funds); BitPay, which allows companies to accept bitcoin payments for goods and services; and CoPay, which offers users multiple private keys for fund and identity protection.
Coinbase and Blockchain are two of the most popular mobile wallet apps for regular people, while Jaxx and Coinomi appeal to those who hold and trade a raft of different crypto-tokens.
But very few apps are like Bitcoin Bubble Burst. Applications like Bitcoin Checker, for example, allow users to monitor the prices of bitcoin from exchange to exchange so they can make note of any differences in the values, but it doesn’t necessarily make predictions regarding what they should do.
Bubble Burst isn’t meant to serve as a personal financial adviser, and those interested are being asked to visit the app’s official page and learn more prior to putting their monetary futures in the mix.
Trading can be a strenuous business, and it doesn’t hurt to be fully prepared before stepping in.
Do you have any experience with A.I. price prediction? Please share your thoughts in the comments below.
Images via Twitter, Bitcoin Bubble Burst, Pixabay
Note: This report is meant for informational purposes only, and does not constitute financial advice. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin, or any other digital asset.