A Neural Network That Will Tell You When to Sell Bitcoin
December 7, 2017
The Bitcoin’s rapid growth in value is really impressive, and it is important to note that not only the price but also the volatility is growing. The last one has obviously made inexperienced investors be nervous. Like any stock or market, the Bitcoins’ value can not be high growing forever.
On the one hand, the massive rise in value makes sustained huge profits for people. On the other hand, it could lead to a massive "correction" when a large amount of people will start selling their assets. When that happens, the price of the traded commodity is dropping substantially in value. For Bitcoin, it can lead to a so-called “chain death spiral”.
Fortunately, we live in the age of digital technologies, mobile applications and blockchain technology. Handymen, meanwhile, have created an application that uses the learning ability to scan the cryptocurrency market, news and social networks to signal any potential market crashes in the future.
According to RT, the Bitcoin Bubble Burst application warns the price changes in real time by using algorithms based on Bitcoin price change data, combined with social networks’ news and media feed.
It is funny, despite the fact that this application will be a useful tool, it can bring serious potential problems. The swath of bad news reports and negative sentiment in social networks can lead to false sell-off messages, which, undoubtedly, will trigger a panic in the market and lead to the same situation that developers are trying to prevent.