A provocative new app, Bitcoin Bubble Burst, promises to keep its users ahead of what seemingly everyone, at some point, has predicted: the bitcoin apocalypse when prices plummet. Can vaunted artificial intelligence and neural networks produce predictive models useful enough to save fortunes?
Predicting a Coming Bubble Burst
“The idea came from discussions we had inside the team about whether the bitcoin bubble will burst soon, or will the value keep rising,” Saad El Hajjaji, one of the team members, told Digital Trends. “Since it’s a topic that many people are interested in, we thought it would be good to try and predict the changes before they take place, so that you always stay in the loop.”
Bitcoiners are stocked up on a variety of price tickers, using exchanges from all over the world. These apps can tell what the price is but offer scant help in what the price might be in the future. And with the notorious volatility swings, some in the space are probably starting to get nervous as to the best time to exit.
What many newer investors have trouble understanding is an inverse reciprocity to trading. For every bitcoin purchased, unless mined, someone is willing to sell. Each is communicating. And while there’s no process to fully divine what someone on the other end of that transaction might be thinking, it’s fair to assume time preferences are different.
Depending upon goals and desires, it’s hard to exactly tell who comes out on top in the end. For most observers, the metric is future price. If it goes up and fails to retrace, the purchaser won. If the opposite happens, of course, the seller escaped disaster. A bubble happening, a massive sell-off, might not be all that bad for longer-term investors. In fact, some might see it as a discounted buying opportunity…