What Does AI Have to do with Cryptocurrency? - Grey Ring

For the uninitiated, understanding cryptocurrency can seem like attempting to talk in another language. A language that, as time goes on, becomes more valuable, more tradable and normalised.

The basics are fairly simple to grasp, however the introduction of AI and machine learning into the blockchain may usher in a new age of cryptocurrency.

What is cryptocurrency?

Cryptocurrency, or Crypto, is digital currency which can be exchanged, much like real money, for goods, services, or other types of cryptocurrency.

Cryptocurrency is held and traded through distributed ledgers (like banks, but instead of being centralised the currency and record of sale is distributed over nodes), with incredibly strong cryptography.

The most famous type of ledger is blockchain, which registers each movement/sale of currency as a unique, secure “block” on a chain of purchases between two parties. Distributed ledgers on the other hand are registered over multiple devices, but for ease of understanding they are one and the same.

Cryptocurrency is held in apps called “Wallets”, and traded, sold, or purchased from vendors called “Exchanges”. Many exchanges deal in multiple types of crypto currency, with Binance being one the largest.

These ledgers register and protect the transfer of currency in an indelible, incorruptible, permanent record of sale. This record of sale is acknowledged by both parties and the sale is registered with a unique cryptographic code or signature, and time stamped. There can be public ledgers and private/invitation-only ledgers.

The distributed nature of this currency is why cryptocurrency is so popular and why it’s growing at a phenomenal rate. Due to its distributed nature it’s essentially authority-less and requires no third party intermediary or authentication. However, due it not being built on or supported by fiat currency, it’s worth fluctuates. It’s become a rapidly scaled, at times insecure currency on which to do business compared to established analogue currency.



  • There are over 6,700 cryptocurrencies being traded
  • The total market cap of all cryptocurrency in existence is $1.6 trillion (as of March 28th 2021)
  • The most popular cryptocurrency – Bitcoin – has a market cap of over $1 trillion by itself!


Where does AI factor into crypto?

AI and machine learning ostensibly deal in data and how to more effectively glean data and make effective changes in answer to inefficiencies. Machine learning extrapolates actionable intelligence from AI services or functionality. It maps patterns within any given system, industry, platform or business.

In effect AI and all attributable services to do with AI are dealing in efficiency.

AI and crypto are developing side by side but it’s critical to realise that AI is only as helpful and as useful as the data it’s working with. The best question to ask is will AI serve a positive function, or meet a certain goal?

The power of blockchain and AI working together has barely been explored. From AI generated data sharing on blockchain, to sentiment analysis via data gathering from social media and exchanges, AI is the pattern gatherer than can then build strategies of crypto-trading ahead of the competition.

What are the limits of AI within the crypto market?

For all intents and purposes the rise of AI and blockchain will continue and go hand in hand with tech expansion and reliance. Companies using some sort of data (which is every company) will only benefit from distributed networks, AI data sharing and more.

Understanding the limits of AI use within your company is vital in knowing how to best utilise it. One of the core issues with cryptocurrencies and trading are rogue traders and unsupported, or easily compromised wallets, exchanges or ledgers.

Crypto is still the wild west of currency trading, and there are bad actors in the space. The major traders and exchanges are totally safe. They’re known entities with famous CEOs advocating for crypto. The currency itself is inherently incorruptible, but the method of trading still has its snags.


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