What is AI, and how it is applied to crypto?In a nutshell, artificial intelligence (AI) is a computer system that exhibits self-learning behavior or cognition. Cognitive computing systems are computers that use techniques such as machine learning to automatically determine how best to execute tasks without being explicitly programmed using rules.For example, let’s say you have data showing that people who bought your product were going to buy something new with about a 30% chance of higher profit margin. You also have an algorithm that determines what percent of your sales staff should be responsible for finding new customers in this specific area.With all these variables, why not just test them and see which one generates revenue growth the most? That’s basically what we did with our research team at Google Ventures. We invested heavily in companies like Ascribe ($3 billion market cap), Optoro ($1.2 billion market cap) and SuperData ($750 million market cap). These companies rely more on automation than on people to generate revenues and profits.By having built-in mechanisms to respond to changes in its environment and seek out opportunities to improve results, machines can consistently outperform humans at repetitive tasks. It’s called machine learning, and it depends upon algorithms that build models that identify patterns in the information provided.The key here is to provide information; the better the information is, the easier it is to recognize patterns. For instance, if you know someone likes pizza but hates meatballs, then there’s a good chance.Why are people investing in AI?What is artificial intelligence (AI)? Well, it’s hard to define.For example, there are two types of AI. One is when a computer program can perform a task that would take humans hours to complete. The other is when a complex system can use data and patterns to determine what needs to be done next.The idea of AI has been around since the 1950s, but recently, we’re seeing AI used in all sorts of applications.These include voice recognition, text-to-speech technologies, and simple algorithm systems that can analyze data and make decisions.Is it easy to invest in AI?While there’s no denying that advanced artificial intelligence is an exciting prospect, the technology is still in its infancy compared to computer and smartphone systems.And while we may be closer to achieving human-level intelligence in machines, this level of understanding will likely take decades to achieve.In the meantime, companies are already using similar technologies to data analysts to detect patterns, anomalies, or trends in large amounts of information. What’s more, machine learning relies on algorithms that develop general rules to identify specific objects or behaviors.As such, you can apply these same principles by looking at how cryptocurrencies perform against certain indicators. By taking actionable steps to investigate the fundamentals behind cryptocurrency prices, you can use technical analysis to gauge whether the price of a particular coin is going up or down.By applying fundamental and technical analysis to cryptocurrency, you can find where demand has fallen below supply, which can help inform when another coin will increase in value. These are all possible ways to learn about Bitcoin and other coins without downloading any software.What are the benefits of AI?There are many applications for artificial intelligence in finance, security, healthcare, transportation, energy production, manufacturing, marketing, communication and other industries. AI is already being used to improve quality of life by identifying patterns in large data sets and acting as a guide or mentor to help people make decisions.For example, Google searches can predict weather problems before they happen; self-driving cars can identify traffic jams ahead and adjust their speed automatically.In short, AI can monitor things around it to detect changes before humans do. This ability to recognize patterns and act quickly is what makes it so powerful.However, there are some issues with using AI. The first problem is accountability. If a computer does something, no one will call it a crime to check if it was right or wrong. People have been concerned about this issue for years, and it has taken a huge blow recently with the popularity of autonomous vehicles. A lot of public support has come out against them because of concerns over privacy, safety, and costs.Another concern is that computers cannot differentiate between different situations. They may not understand how something should be treated, and they don’t know who should get what rights. For instance, why shouldn’t a bot take someone’s picture and use face recognition software to determine their age? It could easily give an infant child to a predator instead of his or her parents.How does AI work?Let’s learn about how natural language processing, machine learning, and neural networks function.Natural Language Processing (NLP) is used to take raw text and turn it into structured data, you can use information that has context-the meaning of words depends upon other words in the sentence. For example, when someone asks your friend, “How are you?” Your friend replies with their name instead of using word form or spellings. They refer to themselves by term names like Janie or Jenny.What makes NLP unique is its ability to identify patterns and relationships in data and then create rules to organize and manipulate new data.This allows for sophisticated automated processes which allow computers to handle tasks once reserved for humans.Many experts believe that cryptocurrencies such as Bitcoin would not be possible without extensive use of artificial intelligence technology. A common phrase among investors is:”You don’t understand AI if you think you can beat the market with stock algorithms.”Algorithms developed through neural network architectures have been linked to more accurate predictions than traditional trading strategies.Neural networks cover several layers of programming related to AI functions, including speech recognition, part-of-speech tagging, semantic analysis, logical reasoning, etc.They can also track large numbers of variables across extremely massive sets of inputs for predictive analytics applications.What is cryptocurrency?Currency, money, or cash are terms that get bandied about in bitcoin all the time. Most generally, they refer to the virtual currency installed in digital wallets software.More specifically,bitcoin is a kind of open source technology used as a medium of exchange. It is not the only method of paying for things offered by online merchants, but it is becoming more popular every day.As one of the first forms of payment available through websites such as eBay, Amazon, and Medium, bitcoin can be considered an early form of crypto-currency.What makes bitcoin different from traditional currency is that bitcoins have no legal tender status. They aren’t issued by any government, and there are no agencies or bodies responsible for overseeing their production, so nobody has authority to make them worth more or less. Administered by computers, the bitcoin system is self-regulating — getting new users requires a decentralized network so people can validate transactions and send them to each other.The innovations associated with bitcoin helped pave the way for what was to come for other types of currencies.Where once only precious metals were employed to fulfill this function (the gold standard) later followed copper, then paper notes which were combined with electronic transfers and encoding into large ledgers, called banks.Now, using either a bank account or debit card and checking an e-transfer or updating an address book further increased its popularity.Why should I invest in cryptocurrency?There are several reasons why you would want to invest in cryptocurrency. The most popular form of digital currency is Bitcoin, but there are many other versions, including Litecoin, Ethereum, and Namecoin.Altcoins have risen in popularity over the past year; there were over 1,500 cryptocurrencies at the end of 2016. Many of these newer alternatives focus on improving upon the features of Bitcoin and become more appealing for investment.Among the advantages of investing in altcoins is that you don’t need to buy them from a shop. You can either purchase them directly through a website or trade some of your traditional currency for them.Another advantage is that you can store your coins offline with no loss of value. While this isn’t possible on a smartphone, you can always download a wallet online. These offer safety protections such as secure passwords and multi-signature schemes, which help make bitcoin safer to spend.How to invest in cryptocurrencyAlthough it’s still a fledgling market, there are many ways you can buy cryptocurrencies. If you have access to any of the major crypto-exchanges (i.e.: Binance, Kucoin, Gatecoin), then they are where most people start when they want to get involved with bitcoin and other digital currencies.With these exchanges, you can purchase Bitcoin, Ethereum, Ripple, LiteCoin, or Many others. You can either use bank accounts or your credit cards to buy tokens.Although anyone can open an account on a coinbase exchange, only accredited investors (i.e.: people who earn over $200k per year) can actually own bitcoins.Other ways to acquire coins include creating a faucet website (which gives out small amounts of currency), trading popular altcoins at online forums, via mining techniques such as cloud hashing, or buying directly from another person.Are there any risks involved with investmentThere are many different types of cryptocurrency, each weighing its own advantages and disadvantages. You may have known about one or several of them, but maybe you didn’t! It’s important to know about current trends in cryptocurrencies because this can help you decide which type of currency is right for you.There are four main categories currently available, so if you don’t like anything these days, then they are your choice! These are; Bitcoin, LiteCoin, PeerCoin, and Dogecoin.But what exactly are they? And why should you care? Well, let’s look at the basics of bitcoin first before moving on to its competitors.Bitcoin is by far the most popular form of crypto-currency. TradeBTC was created in 2010 as an industry leader offering wholesale trade services similar to ETrade stock shares. It operates using a system referred to as ‘blockchain technology,” which allows transfers of money to be managed in a secure way.Check out our new platform 👉 https://thecapital.io/https://twitter.com/thecapital_iohttps://medium.com/media/3b6b127891c5c8711ad105e61d6cc81f/hrefArtificial Intelligence And Cryptocurrency was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.